What % of your takehome pay are you spending on living expenses?

[AgronAlum]

I mean, you can believe what you want to believe, but you can raise kids a lot cheaper if you need to.

I mean sure you can. I have. That doesn't mean it's responsible to do so or that it's not a factor in younger people not having kids.

There was a time not that long ago where a factory job would buy a house, newer cars, kids and a pension. Those days are gone and young people know it. The quality of life in this country is declining rapidly and the people choosing to have kids right now have to not only look at today but another 18 years and beyond. The current outlook is bleak to say the least.

 

[clones_jer]

You have 8 kids on a single 65k income? I don't think I can make this math work in my head, that's gotta be like $2k in groceries each month alone right?

He's saying he HAS made $65k a year, I'm sure he makes more now. that's the thing about dependents, they seem to push you to be more.

 

[BWRhasnoAC]

The only thing I get from the government is the child tax credit on my yearly taxes. If you’re asking about Medicaid or WIC, no. What kind help are you referring to?

Medicaid, food or rental assistance mostly come to mind. Everyone in my family under 43 with kids is getting government healthcare and food assistance.

 

[AllInForISU]

You have 8 kids on a single 65k income? I don't think I can make this math work in my head, that's gotta be like $2k in groceries each month alone right?

No, that’s not what I said. I had kids (I think 3) and was making right around 50k gross a year. That was in 2019. My point is having 1 kid at 65k is more than doable.

Groceries now aren’t 2000/month either. At most 1500/month, and that’s on the high end

 

[clones_jer]

I mean sure you can. I have. That doesn't mean it's responsible to do so or that it's not a factor in younger people not having kids.

There was a time not that long ago where a factory job would buy a house, newer cars, kids and a pension. Those days are gone and young people know it. The quality of life in this country is declining rapidly and the people choosing to have kids right now have to not only look at today but another 18 years and beyond. The current outlook is bleak to say the least.

The quality of life in the US and world is statistically better by almost any measure than it ever has been. The housing market is admittedly little sideways, but it will correct in time. There are more ways to make money than ever before and more conveniences and safety nets. You literally won the sperm and egg lottery being born in today's society ESPECIALLY in the US. lol. I feel like I'm taking crazy pills.

 

[AllInForISU]

Medicaid, food or rental assistance mostly come to mind. Everyone in my family under 43 with kids is getting government healthcare and food assistance.

Yea, I don’t do any of that

 

[FriendlySpartan]

Yea, I don’t do any of that

We could probably have a whole thread of people just asking you questions about this lol like a reddit AMA for 8 kids single income on CF

 

[BWRhasnoAC]

We could probably have a whole thread of people just asking you questions about this lol like a reddit AMA for 8 kids single income on CF

Single income? Not possible unless he's making 6 figures.

 

[3TrueFans]

Groceries now aren’t 2000/month either. At most 1500/month, and that’s on the high end

What ages we talking here? What kind of black magic is at work that you're feeding 10 people for an average of like $130-140/person/month?

 

[AllInForISU]

What ages we talking here? What kind of black magic is at work that you're feeding 10 people for an average of like $130-140/person/month?

Haha newborn-11, so all younger. Don’t ask me what I anticipate the bill to be when I have a bunch of teenage boys. The bill will certainly be closer to that, probably higher.

 

[AgronAlum]

The quality of life in the US and world is statistically better by almost any measure than it ever has been. The housing market is admittedly little sideways, but it will correct in time. There are more ways to make money than ever before and more conveniences and safety nets. You literally won the sperm and egg lottery being born in today's society ESPECIALLY in the US. lol. I feel like I'm taking crazy pills.

If you can't see what's happening with the cost of living right now, especially over the last 10-15 years or so you're ******* blind. Combine that with a ****** job market and the wage stagnation that has been happening over the last few decades and yes, the outlook is bleak for someone trying to plan around raising a kid for the next two decades.

 

[1SEIACLONE]

Average mortgage for that with 10% down fixed rate of 6% is 2750 a month.

I ran the numbers through Chase Bank, Ames address on a $325000 dollar 30 years loan with 10% down, you would be at $2288 a month for mortgage, insurance and taxes today at a 5.5% rate, which is their current rate.

 

[BWRhasnoAC]

I ran the numbers through Chase Bank, Ames address on a $325000 dollar 30 years loan with 10% down, you would be at $2288 a month for mortgage, insurance and taxes today at a 5.5% rate, which is their current rate.

I just went with the national average. Either way, let's say you're dual income on the median. So about 104k a year, 6900 a month take home. That's still about a third of your income, with two incomes.

 

[1SEIACLONE]

I just went with the national average. Either way, let's say you're dual income on the median. So about 104k a year, 6900 a month take home. That's still about a third of your income, with two incomes.

Very doable for a couple that wants to own a home, you could also look at some of the communities outside of Ames where the prices are cheaper. You have to wonder how people making the national average actually get by, because if you are only pulling in 104k between the two of you, something is wrong.

 

[MeowingCows]

Yeah but that’s a choice, I’m kinda with him that if you are complaining about finding a job but refuse to look farther then your local or greater area that’s a you problem (again like the poster said that if you don’t have dependents etc)

You move away and get the job that pays that gets you more resume building and if you want to move back later then go for it. We live in a very connected world where it’s not only easier then ever to keep in touch but you also continue to build your network and make yourself more valuable.

It is, but we can't act like there's no real-world cost in that. It's definitely not limited just to single people either. Anyone can pick up and move a family 1,000 miles away for an extra $30,000 salary, too. That's part of the transactionality of it.

If your first thought on this is "what about the spouse and kids?", that applies to everyone else, too. What about the grandparents, the parents, the aunts and uncles, the siblings, the nieces and nephews, the friends, etc. Those are the sacrifices anyone makes. It's never easy. The most lucrative decision isn't always the best one, but that's frequently the only advice ever given to people.

 

[Cyclone06]

I'm trying to figure how everyone is struggling so much but also driving the biggest, most premium cars and trucks our world has ever seen. The dollars driving, and depreciating, on our roads blows my mind every day.

 

[MeowingCows]

The quality of life in the US and world is statistically better by almost any measure than it ever has been. The housing market is admittedly little sideways, but it will correct in time. There are more ways to make money than ever before and more conveniences and safety nets. You literally won the sperm and egg lottery being born in today's society ESPECIALLY in the US. lol. I feel like I'm taking crazy pills.

We've been saying the housing market is a "little sideways" basically since the '08 crisis ended. Somehow, it never has corrected in that time. It has accelerated instead.

Someday, someday, someday. But the in meantime and the now, sucks to suck.

 

[3TrueFans]

It is, but we can't act like there's no real-world cost in that. It's definitely not limited just to single people either. Anyone can pick up and move a family 1,000 miles away for an extra $30,000 salary, too. That's part of the transactionality of it.

If your first thought on this is "what about the spouse and kids?", that applies to everyone else, too. What about the grandparents, the parents, the aunts and uncles, the siblings, the nieces and nephews, the friends, etc. Those are the sacrifices anyone makes. It's never easy. The most lucrative decision isn't always the best one, but that's frequently the only advice ever given to people.

If you have a family of you're own then your decision to move directly affects those people, new jobs, new schools, etc. It mostly only indirectly affects people like your aunts, nephews, grandparents, etc.

If two people's situations were exactly the same (proximity to family and friends for instance) except one had a working wife and two school aged kids, it'd be objectively more messy for the person with the family to choose to make a big move. That doesn't necessarily mean either is "easy".

 

[BWRhasnoAC]

Very doable for a couple that wants to own a home, you could also look at some of the communities outside of Ames where the prices are cheaper. You have to wonder how people making the national average actually get by, because if you are only pulling in 104k between the two of you, something is wrong.

Something is wrong if you're making the median average? Couldn't have put it better myself.

 

[CYdTracked]

I hate talking about financial success because I don't want to discourage the young, who are mostly doing better than they realize. I have a 26-year-old who, unlike many his age (myself included at that time), wants to learn from the fiscally responsible people around him. My advice to him is simple: max out 401k, stay 100% in S&P 500 for the next couple decades, and think very carefully about long-term commitments (marriage, kids, major loans).


I am four years away from early retirement myself. I also continue to save aggressively, but the real driver of my portfolio is the compounding growth over the last 30 years. Now, for better or worse, our investment swings are often greater than our total yearly paychecks combined. We are debt-free at this time and on track to pay off our new home before we retire. We don’t have any kids so we’ve always spent money on travel and luxury cars, which I pay cash for. We’ve been able to live off the rest of our income worry-free by prioritizing our career growth and retirement savings above all else.

It all boils down to fiscal responsibility at an early age that sets up long term financial security. The sooner you start putting money away in long term investments (401K/ROTH IRA, College Savings as soon as your kid(s) are born, etc. ) the better off you will be in the long run. Retirement investing is a marathon not a sprint. I get irked when the markets swing and someone says "how is your 401K looking right now?" Well unless I was retiring today I don't really care because over the long term the market corrects itself and if you stay the course you will come out ahead. The market being down at a given time is not necessarily a bad thing either as if you are contributing to a 401K you are actually buying into those funds at a lower price and will benefit from the long term gains as a result. And like you said diversify your 401K funds too, the heavier you are in S&P funds the better. Some companies 401K will put their match into their stock in your 401K and if you are not careful and don't rebalance your funds regularly you can get pretty heavy into a single stock if you just let that ride.

On top of the long-term investing should always have at least 3 months of income or more in a "rainy day" savings account because life happens and you need to be able to pay for an unexpected repair or purchase or be able to pay your bills if you unfortunately lose your job.

And lastly - debt management. There is nothing wrong with taking out a loan to buy a home or car or other big purchases but you have to have a plan on how much debt you can afford to service and how you plan to pay it off. I always try to pay off loans sooner than they are due by budgeting some extra principal on top of monthly payments then using bonus or tax returns to put some balloon payments on the highest interest loan to pay it down more.

You only live once so everyone has their own priorities and how want to live life. If having a big home and luxury car or spending a lot on entertainment is your thing then you probably will be sacrificing in other areas just like those who choose to be more aggressive with saving are going to sacrifice not taking as many trips or buying the latest and greatest items for comfort or entertainment. Nothing wrong with either approach if you manage your finances properly. For me I'm probably in the middle somewhere. I have a modest home and vehicles and feel like I have done well at investing/saving as an early age that I set myself up for possibly retiring earlier. At the same time I also probably spend on things at times that I could be more frugal about and not buy or do if I really wanted to save more but I do it because I just want to enjoy life in the moment when I do.

There is no cookie cutter plan for finances as everyone has different circumstances and views and have to find a way to live within their means while accomplishing whatever goals they have over several aspects of their finances and how they live their life.