The American Dream is expensive

[Rainger99]

Interesting article about how much it costs to achieve the American Dream - $5,043,323!!

The American dream now costs $5 million. Here'''s a breakdown. (https://apple.news/AcxVGqk3HQPaJxx3IW9wz4w)

[Arctic Fox]

Interesting article about how much it costs to achieve the American Dream - $5,043,323!!

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.

[Whatnext]

There should probably be an 's' after wedding, so that number could rise.

[dewilson58]

:BigApplause:

Wow................that is a bean-counter having fun.

Interesting to see it laid out this way.

Sure, there are some +'s and -'s to numbers for different people, but good observation.

:thumbup:

[opinionist]

The preferred lifestyle makes a huge difference in "living the dream."
I live a modest lifestyle, and that is as much as I want. The cost is much, much less.
If you want to travel the world, eat out at the best restaurants, and live among the rich and famous, that costs a lot more.

[Caymus]

Apparently, people want to live in Palm Beach or Fisher Island and not Scranton or Akron.:angel:

[thelegges]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.

Our lifetime of expenditure is a little different

All of our homes throughout the years is definitely over a million
All of our cars from age 16 to present around $600,000. Looking at a new EV $87,000 will add $
We loved kids so 3, plus college until medical school more than a million
Health care out of pocket deductible and monthly copay $2,000-4,000 year to age 18-64yo.
Vaca less $$ we worked too much
Pets less $$, we didn’t prolong their deaths
Wedding today is far more $$$ than 30 years ago. Our 400 guests today would be over $25,000

Retirement don’t have a clue, dirt nap is still in the future one hopes. Our parent memory care is $7,000 a month. So there is that.

[ElDiabloJoe]

So, you're talking over the span of a lifetime? I mean, who drops $900K on a car?

As for housing, find me a house in Orange County for under $750K that isn't a mobile home or in rent-controlled Laguna Woods (formerly adult community Leisure World). At least find one over 1500 sq ft you would want to raise a family in.

Additionally, that housing price is probably not adjusted for people who bought a house once, made a few years of payments, then sold for a big profit and bought again just to do it again. I did that multiple times, so one is not paying the full asking price outright for each new home when one is rolling over equity (paid and gains) from a previous house.

I don't know what kind of vacations people are taking for $180K, I worked my whole career. A couple thousand less than 10 times to go to Napa or Hawaii, but that's about it.

My wedding was $2500 (Helllllo Vegas!), and I can't imagine I've spent that kind of money on pets over the years, and I've had at least one dog (as many as 4) since 1995 without interruption even up until today.

Still, kind of a fun thing to read through and compare with reality.

[dewilson58]

"It now costs $5 million over"

[OrangeBlossomBaby]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.

I guess it depends on what you consider to be YOUR American dream. Mine doesn't require a fancy car, or much expense on it at all. Because I'd be healthy and able-bodied and walk or ride my bicycle wherever I needed to go, and call a limo to take me to the airport if I want to travel away from my own state. I think I spent maybe $50,000 total for my last car, including the cost to buy it, insure it, and maintain it for 12 years.

It wouldn't need a big home, it's just the two of us, 1200 square feet on a 1/4-acre wooded lot is plenty.

No kids.

Health care hasn't cost us more than $12,000 in any given year, ever, including premiums and co-pays. That's not including a couple of years when we had major dental expenses. Those were the exceptions to the rule. With the current situation, it'll probably cost more. Let's call it $50,000 now. Still nothing like the above example.

Vacations? In MY American Dream, I'd be going on river cruises and maybe a trip to Europe, and back to New England. Not every year. This wouldn't be an "annual" cost of vacations. Maybe $10,000 annual, on average. Less for New England trips, more for Europe.

Once my cat dies, I will probably not have any more pets, or possibly foster one, which means the vet bills are paid for by someone else. So that's a savings right there.

That's my American dream.

[Topspinmo]

Interesting article about how much it costs to achieve the American Dream - $5,043,323!!

The American dream now costs $5 million. Here'''s a breakdown. (https://apple.news/AcxVGqk3HQPaJxx3IW9wz4w)

Depends on how big your dreams are and where you want to live. If you leave out Cala, NW, NE and anywhere on coast. It’s not dream can be reality. IMO biggest problem the American dream has be flush along with all middle class jobs went elsewhere. IMO also any 3rd world country the American dream just getting here. Government will take care of rest, until become citizen….. then dream turns into taxation nightmare and r back line for healthcare and freebee’s.

[Topspinmo]

I guess it depends on what you consider to be YOUR American dream. Mine doesn't require a fancy car, or much expense on it at all. Because I'd be healthy and able-bodied and walk or ride my bicycle wherever I needed to go, and call a limo to take me to the airport if I want to travel away from my own state. I think I spent maybe $50,000 total for my last car, including the cost to buy it, insure it, and maintain it for 12 years.

It wouldn't need a big home, it's just the two of us, 1200 square feet on a 1/4-acre wooded lot is plenty.

No kids.



Health care hasn't cost us more than $12,000 in any given year, ever, including premiums and co-pays. That's not including a couple of years when we had major dental expenses. Those were the exceptions to the rule. With the current situation, it'll probably cost more. Let's call it $50,000 now. Still nothing like the above example.

Vacations? In MY American Dream, I'd be going on river cruises and maybe a trip to Europe, and back to New England. Not every year. This wouldn't be an "annual" cost of vacations. Maybe $10,000 annual, on average. Less for New England trips, more for Europe.

Once my cat dies, I will probably not have any more pets, or possibly foster one, which means the vet bills are paid for by someone else. So that's a savings right there.

That's my American dream.

When grow up with silver spoon in their mouth they expect all things they are accustomed too. Us they grew up poor grateful just to be alive at retirement time and able to retire.

[BPete22]

Over 55 years of adult life that equals to about $92,000 per year.

[Rainger99]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Please note that the total amount ($5 million) is over a lifetime. It does not refer to a one time purchase.

It is pretty easy to hit $1,000,000 on housing over the course of 50-60 years.

I bought a modest home in the Villages for under $400,000. But I am paying $5000 a year in taxes and bonds plus insurance and utilities and maintenance, etc., so my yearly upkeep is about $10,000. My house up north was about $300,000 plus taxes and upkeep so I have probably spent close to a million on housing in the past 50 years.

[OrangeBlossomBaby]

When grow up with silver spoon in their mouth they expect all things they are accustomed too. Us they grew up poor grateful just to be alive at retirement time and able to retire.

I grew up with a silver spoon, but it was often in need of polishing, and was a hand-me-down from my grandmother. In other words - solidly middle-class, with upper-middle-class grandparents. We had trust funds but they weren't million dollar trust funds, they were multi-thousand trust funds which we spent on our college educations, and medical expenses. Not caviar and yacht clubs.

But my grandmother turned her family into the wealth she did have, by being somewhat frugal, and incredibly attentive to expenses and income when my grandfather started out his dental practice - at the height of the Depression. That was when most of his patients were unable to pay for the services. They'd pay in kosher chickens, or roof repair, auto repair, ice for the ice box, milk and butter delivery, tuneups for the car. People who did have money, paid my grandmother who sunk every penny she could into savings, until she was able to invest. And then, she invested. And turned "nothing" into "something." She taught us the value of not just hard work - but compassion for our neighbors and the value of having and being a real neighbor in the community. Of giving, trading, exchanging ideas and material goods, saving when you can and spending ONLY if you have a community to support you when you run into trouble and need help. Owing as little as possible, but not being afraid to owe if the alternative is a suffering family.

My grandmother never worked an actual paying job in her entire life. But she was a volunteer, a philanthropist, a playwright, and a genius when it came to turning zero income into invested assets, while keeping her family clothed, fed, housed, and loved. And importantly, she taught us that we had no right to "expect" success, or income, or luxuries, or nice things. The world didn't owe us these things. The world didn't owe us anything at all.

[elle123]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.
The article describes the "accumulated" expenses over a lifetime.������

[rsmurano]

People didn’t read the article: it says a lifetime expenditure for each category.
My take: retirement is way low, should be doubled to $3M,
Home cost includes all the expenses like: taxes, bonds, insurance costs, cost of new home, renovations, realtor fees, etc.
Car sound about right, maybe a little high. I get 2 new cars every 2 years and the cars aren’t cheap, plus insurance, repairs, maintenance costs, golf cart expenses would probably be included,
Kids: never ending, everything else seems to be in line

[USOTR]

The figures are based on a lifetime of expense not a one time purchase. That said I find it interesting the American auto manufactures now see themselves as important as owning a house and expect our lifetime investment to be the same.

Jump across the pound and most citizens don't even own a car.

[Janie123]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.
I think they mean over your lifetime for houses and cars including upkeep, taxes and maintenance.

[Topspinmo]

I grew up with a silver spoon, but it was often in need of polishing, and was a hand-me-down from my grandmother. In other words - solidly middle-class, with upper-middle-class grandparents. We had trust funds but they weren't million dollar trust funds, they were multi-thousand trust funds which we spent on our college educations, and medical expenses. Not caviar and yacht clubs.

But my grandmother turned her family into the wealth she did have, by being somewhat frugal, and incredibly attentive to expenses and income when my grandfather started out his dental practice - at the height of the Depression. That was when most of his patients were unable to pay for the services. They'd pay in kosher chickens, or roof repair, auto repair, ice for the ice box, milk and butter delivery, tuneups for the car. People who did have money, paid my grandmother who sunk every penny she could into savings, until she was able to invest. And then, she invested. And turned "nothing" into "something." She taught us the value of not just hard work - but compassion for our neighbors and the value of having and being a real neighbor in the community. Of giving, trading, exchanging ideas and material goods, saving when you can and spending ONLY if you have a community to support you when you run into trouble and need help. Owing as little as possible, but not being afraid to owe if the alternative is a suffering family.

My grandmother never worked an actual paying job in her entire life. But she was a volunteer, a philanthropist, a playwright, and a genius when it came to turning zero income into invested assets, while keeping her family clothed, fed, housed, and loved. And importantly, she taught us that we had no right to "expect" success, or income, or luxuries, or nice things. The world didn't owe us these things. The world didn't owe us anything at all.



I grew up with nothing, not even dad, my grand mother raised me along with her 7 kids in 4 room Shack outside farming community small town. My grandparents never even own vehicle in their life. Made due on 2 acre slop. I started working when I was 13 32 hours week in grocery store at 60 cent hour. Had NO change for higher education. My son was first to earned doctorate degree in my family on both sides. Worked for everything, no welfare, no food stamps, no grants, no commodities. You didn’t work or grow food you didn’t eat. The world doesn’t own me a thing. I earned everything I ever had. So I don’t want here about need 5 million to retire. In my whole life only made 1.4 million and 1/3 of that was probably taxes. Some might say being I spent 21 years in military and 20 federal I’m on welfare with my retirement annuities. But, I bet those didn’t have to consider joining military as option. I didn’t make those rules I earned them.

[MandoMan]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.

I’m afraid you didn’t read the entire article. $957,000 included the cost of the average house at, as I recall, $412,000, plus fees involved with the purchase, taxes for years, thirty years of interest on the mortgage, and upkeep (like new roofs, HVAC, etc.). The new car was based on a new car every ten years from 22 to 75, paid on the installment plan. The vacations were under $3,000 a year. (It used to cost $2,500 a year to fly my family of five from east coast to west coast to visit the grandparents yearly at Christmas.) The health care includes decades of paying for health insurance, but many of us here had that as a job benefit. The $1.6 million for retirement doesn’t take into account that a person’s contribution to that may have been much smaller. I had that much when I retired, in mutual funds, but my actual contributions to that fund were only around $300,000. The rest was the growth of the stock market over the decades. The cost of the kids includes sending them to state universities.

I scrimped on the American Dream. I bought used cars when the old ones were worn out. ($2,500, $4,000, $4,500. 5,500, $23,000, $30,000. That’s $68,000 plus repairs and some interest.) I’ve had five houses: $40,000, $200,000, 100,000, $430,000, $300,000. But I’ve paid off mortgages in ten years of less, when I had one, and remember, I sold the previous houses for more than I paid, and always enough to include the mortgage and taxes.

Perhaps we should call this the American Fantasy. I’d say that right now I’m living the American Dream for my age. My home is in good repair and paid for. I have a nice used car that I bought for cash a couple years ago. I’m in decent health and have Medicare and great supplemental insurance so being sick doesn’t cost me anything. I’m on a permanent vacation in paradise. I can buy anything I want without worrying about if I can afford it. (Fortunately, there’s very little I want.) My kids are 35-40 and educated and okay. I plan to leave them my mutual funds and home when I die.

I’d say it’s a weird article, and I’m glad my idea of the American Dream has always been more modest than that.

[Villagesgal]

I'm sorry, but that is such crap. The American dream is living a happy life with family and friends, and that doesn't take a fortune; it takes "just enough" money and a lot of your own time invested. Enough money to have a stable place to live. Lots of places in the U.S. still have affordable housing, it's not a dream mansion, but you don't need that to be happy . It takes living somewhere with public transit and using it. It's being happy with a reliable car, not a car to impress others. It takes working your way through trade school or a state university. It takes buying many things in the secondary market, used; no one knows where you bought your beautiful things. Being happy takes spending time with your kids, not throwing money at them. Being happy takes spending quality time with your friends and family, at home or in a park enjoying each other's company. We traveled the world, still do, but never spent a fortune doing it. We stay in private guest houses, senior hostels, religious guest facilities, etc and take trains, public buses, or walk. We used to take our kids on cruises when there were 3rd and 4th in the cabin free deals getting inside cabins. Spoiler, you only sleep in your cabin and enjoy everything else during the cruise just like those who bought the expensive cabins. At this point I've seen most of the world, I have a lot of international friends, enjoy my children and grandchildren and have a very happy life. We saved every year, so that we could enjoy retirement. We never cared what "the Joneses" had or thought. We never were high earners, we never bought what we didn't need just because we saw it on TV, we never bought on impulse and we've had a great life, a very happy American dream life. Get your priorities straight. My children are not high earners, but with work they own their own homes, they have lovely children, great friends, cars, good jobs, and are happy. So much of happiness is in attitude. You can still live the American dream and do it on a regular salary. We here in the Villages are blessed living a great retirement too and that doesn't take a fortune either. Stop trying to keep up with the Joneses and start enjoying the beautiful simple life we have here.

[Andyb]

Guess I’ll miss the American Dream

[Elixir34]

“Kids. Who needs them?”

What a short-sighted and selfish opinion !!
America NEEDS kids to survive !!!

Otherwise as a nation, we are FINISHED in one generation.

[dewilson58]

I'm sorry, but that is such crap. The American dream is living a happy life with family and friends, and that doesn't take a fortune; it takes "just enough" money and a lot of your own time invested. .........................

Breath, Breath......................it's just an article which was posted on a social board and posters are commenting on the costs laid out in the article.

No one is saying money is the only thing.

:beer3:

[Aces4]

I'm sorry, but that is such crap. The American dream is living a happy life with family and friends, and that doesn't take a fortune; it takes "just enough" money and a lot of your own time invested. Enough money to have a stable place to live. Lots of places in the U.S. still have affordable housing, it's not a dream mansion, but you don't need that to be happy . It takes living somewhere with public transit and using it. It's being happy with a reliable car, not a car to impress others. It takes working your way through trade school or a state university. It takes buying many things in the secondary market, used; no one knows where you bought your beautiful things. Being happy takes spending time with your kids, not throwing money at them. Being happy takes spending quality time with your friends and family, at home or in a park enjoying each other's company. We traveled the world, still do, but never spent a fortune doing it. We stay in private guest houses, senior hostels, religious guest facilities, etc and take trains, public buses, or walk. We used to take our kids on cruises when there were 3rd and 4th in the cabin free deals getting inside cabins. Spoiler, you only sleep in your cabin and enjoy everything else during the cruise just like those who bought the expensive cabins. At this point I've seen most of the world, I have a lot of international friends, enjoy my children and grandchildren and have a very happy life. We saved every year, so that we could enjoy retirement. We never cared what "the Joneses" had or thought. We never were high earners, we never bought what we didn't need just because we saw it on TV, we never bought on impulse and we've had a great life, a very happy American dream life. Get your priorities straight. My children are not high earners, but with work they own their own homes, they have lovely children, great friends, cars, good jobs, and are happy. So much of happiness is in attitude. You can still live the American dream and do it on a regular salary. We here in the Villages are blessed living a great retirement too and that doesn't take a fortune either. Stop trying to keep up with the Joneses and start enjoying the beautiful simple life we have here.

Excellent synopsis! We too have enjoyed a good life using common sense and ambition. So many young people today lack the simple skills for home improvements, repairs and painting. Buying new vehicles is a waste of money when a one or two year old vehicle will do the trick. Buying sport clothing at the stadiums is a huge financial drain as are tickets. Seating is much better at home and the restroom is close when watching games.. The list goes on and on. Practical life experience when raising your children is key. There are too many idiots coming out of college now.

[joshgun]

I read the article and a lot of people are misinterpreting the cost. It isn’t the purchase price of home, it includes purchase price insurance, interest, taxes and maintenance. Also, it isn’t an average and Orange County or Tupelo MS would be more or less.

[Justputt]

Over the course of my life, I've earned pretty much what's suggested in the article. I've not wasted much, although I wasted money on apartment rent for too long on a couple of occasions. I've paid off 4 homes, paid for two kids BS college degrees and grad schools and gave each a new car for graduation, I paid for two additional college and one additional grad degree, I owe nothing, and I've saved and invested pretty well. Besides Canada, I've only been out of the country once to attend a wedding, never been to Alaska or Hawaii, so vacations are pretty simple where the goal is fun and family time. When my dirt knap comes, my wife will be fine, and when her time comes, the kids will have something besides memories. The American Dream is very much alive when you live within you means, which may mean not living in the "best" zip codes, not buying the newest stuff, driving a car until "the wheels fall off", etc. Yes, that suggested $5M is a lot of money, but we all remember what we made when we first started work. My dad took a Treasury Dept job after WWII making a whopping $5,500/yr and was thrilled, my first job out of grad school in 1980 was $25k/yr and I thought wow... what am I going to do with that much money!? And look at the salaries we earned at the end of our working years compared to our first years. I try to separate the things I want from the things I need or may need, then plan accordingly. A quality education in a useful field has always been a priority because it can't be taken away from you. Lastly, the clock is ticking, and there is a temptation to burn through cash to complete a bucket list before the end, but our brain is volatile memory and that bucket list will be dust lost to time. Helping family, scholarships, and leaving a legacy are my focus.

[dewilson58]

I read the article and a lot of people are misinterpreting the cost. It isn’t the purchase price of home, it includes purchase price insurance, interest, taxes and maintenance. Also, it isn’t an average and Orange County or Tupelo MS would be more or less.

& over many many years.

[Aces4]

Over the course of my life, I've earned pretty much what's suggested in the article. I've not wasted much, although I wasted money on apartment rent for too long on a couple of occasions. I've paid off 4 homes, paid for two kids BS college degrees and grad schools and gave each a new car for graduation, I paid for two additional college and one additional grad degree, I owe nothing, and I've saved and invested pretty well. Besides Canada, I've only been out of the country once to attend a wedding, never been to Alaska or Hawaii, so vacations are pretty simple where the goal is fun and family time. When my dirt knap comes, my wife will be fine, and when her time comes, the kids will have something besides memories. The American Dream is very much alive when you live within you means, which may mean not living in the "best" zip codes, not buying the newest stuff, driving a car until "the wheels fall off", etc. Yes, that suggested $5M is a lot of money, but we all remember what we made when we first started work. My dad took a Treasury Dept job after WWII making a whopping $5,500/yr and was thrilled, my first job out of grad school in 1980 was $25k/yr and I thought wow... what am I going to do with that much money!? And look at the salaries we earned at the end of our working years compared to our first years. I try to separate the things I want from the things I need or may need, then plan accordingly. A quality education in a useful field has always been a priority because it can't be taken away from you. Lastly, the clock is ticking, and there is a temptation to burn through cash to complete a bucket list before the end, but our brain is volatile memory and that bucket list will be dust lost to time. Helping family, scholarships, and leaving a legacy are my focus.

I would hack away at some of that bucket list. It sounds like your kids have done very well by you and by the time you pass away, the government may have a whole new system of removing extra cash from estates.

[rsmurano]

The American Dream is different from 1 person to the other. Some people like living on a strict budget, some people can’t afford to pay for a $1000 car repair, and some want financial freedom to do or buy whatever they want.
We are retired or almost retired, you built up your retirement nest egg for these times, so it’s time to enjoy what you have until you’re gone.
Read the book “die with zero”, it will make you think about the future. After I read this, we increased our budget by 6x.

[Velvet]

So, you're talking over the span of a lifetime? I mean, who drops $900K on a car?

As for housing, find me a house in Orange County for under $750K that isn't a mobile home or in rent-controlled Laguna Woods (formerly adult community Leisure World). At least find one over 1500 sq ft you would want to raise a family in.

Additionally, that housing price is probably not adjusted for people who bought a house once, made a few years of payments, then sold for a big profit and bought again just to do it again. I did that multiple times, so one is not paying the full asking price outright for each new home when one is rolling over equity (paid and gains) from a previous house.

I don't know what kind of vacations people are taking for $180K, I worked my whole career. A couple thousand less than 10 times to go to Napa or Hawaii, but that's about it.

My wedding was $2500 (Helllllo Vegas!), and I can't imagine I've spent that kind of money on pets over the years, and I've had at least one dog (as many as 4) since 1995 without interruption even up until today.

Still, kind of a fun thing to read through and compare with reality.
$180k for vacations over a lifetime, adds up, I spent the winter months in Hawaii to paint and each year it was closer to $30K, I was there more than 10 years, all on a teacher’s salary but I did consulting on the side. We went to Napa too bought a $30K BMWLT motorcycle plus hotels every night etc for 62 days in the summer, cross country. Two years in a row. I think we spent $108K in quite a short time - but we really liked our vacations, and hubby liked comfort, a bit of pampering and good food.
(Hubby passed away suddenly at a youngish age - I’m so very glad he got to live out his dream.)

[Rainger99]

I would expect that if you are living in the Villages, you are very close to living the American Dream or have achieved it.

I just looked at the Villages website. There are more than 40 new homes listed under $300,000 and the cheapest was $219,500.

And you get the same amenities - golf, pickleball, swimming pools, clubs - if you live in a $219,000 home or a $2,000,000 home.

A $219,000 home dies not seem that extravagant.
However, about 20% of American households have a net worth of about $18,000 so to them, this must seem like the impossible dream.

[OrangeBlossomBaby]

I read the article and a lot of people are misinterpreting the cost. It isn’t the purchase price of home, it includes purchase price insurance, interest, taxes and maintenance. Also, it isn’t an average and Orange County or Tupelo MS would be more or less.

Our first home was a condo. We took a loss on that, got back only half of our purchase price. So we were down around $60k when we bought our new house at $138k. Since it was a condo and had new appliances, we paid nothing in maintenance but we did pay condo fees. So the price of "living within four walls with indoor plumbing, electricity, etc" set us back a total of maybe $80k over 11 years.

Then we made improvements on our new house - new roof, new fence, couple of tree removals, renovated the bathroom, put up drywall to create a "man cave" in the basement, added a patio behind the garage. All that, plus utilities and property taxes, maybe $100k total over 13 years of living in it. So total cost for our first free-standing house including improvements, purchase price, utilities and taxes, came to around $238. Minus the $60k we got back from our condo and sunk back into the new house, so total expense came to $238-60= $178,000

We got $195 when we sold the house, so we're now $17,000 ahead. We took that $17k and sunk it into our current house, our Villages house. So far we've spent, including purchase price, amenity fees, maintenance, minor improvements and taxes, maybe $200k, after deducting the $17 we already had in profit from our previous home.

So - to recap: we've spent around $260k in total, for living somewhere other than our parent's house, since the year before we got married 35 years ago. That's the $200 we've had to spend since we bought our first house, plus the $60 we lost on our condo.

I think it's easy to misunderstand your own math, when you stack the price you pay for your homes, without including the proceeds from SELLING those homes before buying a new one. Yes, you paid $500k for your house. But you sold it for $600k. So your net expense is -100, meaning - you profited, not spent.

[Marmaduke]

Our lifetime of expenditure is a little different

All of our homes throughout the years is definitely over a million
All of our cars from age 16 to present around $600,000. Looking at a new EV $87,000 will add $
We loved kids so 3, plus college until medical school more than a million
Health care out of pocket deductible and monthly copay $2,000-4,000 year to age 18-64yo.
Vaca less $$ we worked too much
Pets less $$, we didn’t prolong their deaths
Wedding today is far more $$$ than 30 years ago. Our 400 guests today would be over $25,000

Retirement don’t have a clue, dirt nap is still in the future one hopes. Our parent memory care is $7,000 a month. So there is that.
God Bless you for liking children and having 3 and instilling values and education upon them.
It will come back to serve you well, I bet.
... and for taking care of your parents, you should be commended. Go visit and check on them and really feel the Blessings. Excellet job, in my opinion!

[Cliff Fr]

The figures are based on a lifetime of expense not a one time purchase. That said I find it interesting the American auto manufactures now see themselves as important as owning a house and expect our lifetime investment to be the same.

Jump across the pound and most citizens don't even own a car.

You can't really compare America to "across the pond". It's a totally different situation there.

[dewilson58]

... and for taking care of your parents, you should be commended. Go visit and check on them and really feel the Blessings. Excellet job, in my opinion!

:BigApplause:

[Meyerro]

Retirement: $1.6 million
Owning a home: $957,594
Owning a new car: $900,346
Raising two children and paying for college: $876,092
Health care: $414,208
Annual vacations: $180,621
Pets: $39,381
Wedding: $38,200

I can see some room for savings:

Owning a home - sure, if you want to live in The Hamptons, but I suspect most areas have a selection for well under $957,954 so let's halve that figure.

Not sure what new car they are getting for $900,346 - possibly a McLaren? - but, with modern cars having a much longer trouble-free life than the clunkers from the 1960's, buying a new car every ten years should suffice, so let's divide that figure by three.

Kids - who needs them?

Wedding - swallow your ego and just get married. It's meant to be a solemn occasion, so you don't have to try to impress everyone by spending a lot of money on frippery.

Regarding the cost of a home, once you add in the mortgage interest, taxes and insurance the purchase price is more than doubled.

[goneil2024]

The source article from USA Today references a recent analysis by Investopedia, so let’s assume the data are credible, I could but will not dispute their findings. I do like the fact that so many readers shared their life journey to reach TV. It’s clear that what constitutes “The American Dream” is very subjective, and relative as many who posted observe.

I suggest that those reading and posting here are not “Average”, and actually you are in my view “Exceptional”. I offer as evidence the many life journeys that were shared by readers on this board. In each case we see how over a lifetime each overcame obstacles, navigated the system, and achieved their goals, the life stories are a testament to resourcefulness, grit, perseverance and vision so that now you are living your best life in TV.

My journey shares many of the same elements as others posting in this thread, HS graduate, working for minimum wage in a textile mill, during Vietnam enlisting in the military, college on the GI Bill, buying used cars keep for 10-yr, act as GC building my own home(s) accumulating equity for the next home, . . . etc. Learning the difference between consumption vs. accumulation; investing vs. speculation; cost vs. value were important and hard learned lessons.

For me it is all about the journey and the satisfaction that comes from overcoming challenges, helping others, succeeding and having the freedom to now enjoy the future for the time remaining.

So I say, “well done”, stay the course, you are the exception!

[ElDiabloJoe]

goneil2024, nicely stated. In fact, if one read through the various posters' journeys to get to The Villages, one could pull out certain commonalities that would help others lead a life so they could "be rich" as it is perceived by many outside The Villages of Villagers.

[Latoo]

Most do not make that in their lifetime.

Lifetime Earnings by Education Level
Less than a High School Diploma: ~$1 million (men) / $0.5 million (women)
High School Diploma: ~$1.5 million (men) / $0.8 million (women)
Some College: ~$1.8 million (men) / $1 million (women)
Associate Degree: ~$2 million (men) / $1.4 million (women)
Bachelor's Degree: ~$2.8 million (men) / $1.4 million (women)
Graduate Degree: ~$3 million (men) / $1.9 million (women)

[Rainger99]

Most do not make that in their lifetime.

The article talks about what it costs to achieve the American Dream.

That is the goal. Obviously, most people never achieve the dream. But many people do reach middle class - which is higher than many of us started.

[Aces4]

The article talks about what it costs to achieve the American Dream.

That is the goal. Obviously, most people never achieve the dream. But many people do reach middle class - which is higher than many of us started.

The American dream is what each individual imagines. There is no guideline as to perfection of financial standards. There is an excellent book which is The Psychology of Money. The richest people are those who realize when they have enough money, not the most. We realized 30 years ago that my spouse and I were were working different hours, raising children, making great salaries and quality in our life was lacking. And the more money we earned, the more we needed. We changed our lifestyle or I should say workstyles, cut the excess in our lives, lived well and no longer were chasing our tails. If we were starting all over again we would never buy as much "stuff". We would live well and streamlined. Everyone has their own goal but we are not interested in chasing our tails.

[ElDiabloJoe]

The American dream is what each individual imagines. There is no guideline as to perfection of financial standards. There is an excellent book which is The Psychology of Money. The richest people are those who realize when they have enough money, not the most. We realized 30 years ago that my spouse and I were were working different hours, raising children, making great salaries and quality in our life was lacking. And the more money we earned, the more we needed. We changed our lifestyle or I should say workstyles, cut the excess in our lives, lived well and no longer were chasing our tails. If we were starting all over again we would never buy as much "stuff". We would live well and streamlined. Everyone has their own goal but we are not interested in chasing our tails.

I like this. I was told long ago something that has borne out to be a truism for me. The secret to happiness is to be happy with who you are and where you are (in life).

Yes, improving one's self in various ways (professionally, education-wise, physically, spiritually, etc.) is laudable but don't make it an obsessively driven goal. There will always be something to strive for: more money, more power, faster cars, bigger houses, more land, etc.).

To be happy, one must be happy with who they are, and where they are. That is the secret.

[Velvet]

I think when it comes to “stuff” it also depends on what you were used to. For example, hubby came from both a wealthy and famous family. His nursery was painted by a “named artist”. Over time, with bad investments, his family lost a lot of money. But hubby never lost his taste for the highest end stuff available. However, to his credit he became a great bargain hunter. And he did it a lot. Which felt, to me, a bit like hoarding, ok expensive stuff, but a lot of it. It made him happy. I learned to live with it. There is nothing better than a happy spouse. I just had my (functional and tidy) area of the house and he had his. I did sometimes wish, for example, that I was not tripping over 8 motorcycles when I went into the backyard but I had my area of beautiful roses, so all was good.

[MollyJo]

Good reminiscing of Old School values. We need that today, but unfortunately the Old School has permanently closed…

[Aces4]

I think when it comes to “stuff” it also depends on what you were used to. For example, hubby came from both a wealthy and famous family. His nursery was painted by a “named artist”. Over time, with bad investments, his family lost a lot of money. But hubby never lost his taste for the highest end stuff available. However, to his credit he became a great bargain hunter. And he did it a lot. Which felt, to me, a bit like hoarding, ok expensive stuff, but a lot of it. It made him happy. I learned to live with it. There is nothing better than a happy spouse. I just had my (functional and tidy) area of the house and he had his. I did sometimes wish, for example, that I was not tripping over 8 motorcycles when I went into the backyard but I had my area of beautiful roses, so all was good.

You are a saint. I detest clutter.:ho: