This is an interesting topic to me. The stats in the article linked in the OP are distressing – especially the bit about how many American’s are NOT saving a penny towards retirement and how many do NOT have even a $10k emergency savings fund. It suggests that many of us are living at or beyond our means.
On the subject of discussion after the OP… I think there is a presumption by successful professionals that they’re poorer than they are compared to everyone else. In other words, upper middle class folks, even wealthy folks, consider themselves “middle class”. But the statistics don’t agree. Most two income professional households are well above middle class. 20.5% of households earn six figures or more. Translated – if your household has more than $100k of income, you’re in the top 1/5. I’d wager a guess that most Piggs fall in this category. Yet we whine that we’re “middle class”. Not sure how being in the top 20% is “middle”.
Yes – we live in an expensive area. But we are all free to move. It is a choice. We stay in the expensive area for a variety of reasons: family, weather, jobs, etc… These are factors in our decision but don’t change the fact that we’ve chosen to live here and put up with the expensive cost of living.
As far as being better off than previous generations… my Dad was an engineer. For my elementary school years my mom was a stay at home mom. We were comfortably upper middle class – but that still meant hand me down clothes (I’m the youngest – I rarely had new clothes), and my mom had to go back to school when they realized 3 kids going to college was going to be expensive. My dad paid off his house in 30 years. I’m an engineer. Within 10 years of graduating I was making as much as my dad (who retired as a “sr. staff scientist”) was making before retirement. Wage inflation had happened. My parents lived comfortably but frugally. Used cars, bought things to last and didn’t care if the kitchen or furniture styles changed…
I’m hoping to do as well as my father. Same degree and a spouse that’s also a professional… I’m not sure it will happen.
My husband’s family is a case study… His parents were blue collar, no college. They were comfortably middle class… owned and paid off their home in 15 years. His mom stayed home till the youngest of 6 kids was in school. They both retired with pensions. They didn’t, and don’t, have a lot of stuff. But they have no debt and are still supporting themselves financially in their 80’s. My husband and 3 of his siblings went to college. 2 are living what appears to be comfortable upper middle class lives… but they are hurting on the retirement savings. 2 of his siblings have no college, no retirement, and are in worse financial shape than their parents. You can’t make a generalization that the current generation is better off than their parents.
