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cost of living

Pop Culture

Middle class families share how much money they have in savings and it's eye-opening

"I transfer money each paycheck but always end up needing to transfer it back."

Photo by Karolina Kaboompics/Pexels

Many middle class families are sharing that they have nothing in savings right now.

According to an April 2024 Gallup poll, 54% of Americans identify as part of the middle class, with 39% identifying as "middle class" and 15% identifying as "upper-middle class." That percentage has held fairly steady for years, but for many, what it feels like to be a middle class American has shifted.

Notably, inflation caused by the pandemic has hit middle class families hard, with incomes not keeping up with cost-of-living increases. Housing costs have skyrocketed in many areas of the country, mortgage interest rates have risen to levels not seen since the pre-Obama era and grocery bills have increased significantly. One government study found that cost of living has increased between around $800 and $1,300 a month depending on the state since 2021, putting a squeeze on everyone, including the middle class.

One woman shared that her family is just getting by and asked other people who identify as middle class to "chime in" with what they have in their savings account.

"I swear, every paycheck I am putting money into my savings, but needing to transfer it back within a few days," shared @abbyy..rosee on TikTok. "My registration is due. My husband's registration is due. He needed two new tires, even though they had a warranty. That's $300. My oldest needs braces, he needs a palate expander, that's $120 a month. Not to mention groceries are $200 more a week. Forget about feeding your family great ingredients because who has $500 a week to spend on perfect ingredients to feed your family?"


@abbyy..rosee

somethings gotta give #savings #middleclass #relatable

She explained that her husband makes enough money that they should be able to live comfortably, and that she quit her job because the cost of daycare was more than she was making.

"At some point, something has to give," she said. "What is going on? How do I save money?"

People in the comments chimed in with their savings account totals and it was quite eye-opening. Many people shared that they have $0 saved.

"We make the most money we ever have and have zero savings. We live paycheck to paycheck and every month I don’t know how we get by."

"I think the middle class is 1 personal disaster away from bankruptcy."

"Y’all got savings accounts?!?! 😂"

"I used to freak out if I had under $10k in savings, now I’m happy when I have over $150. 😫"

"We make almost 100,000 a year with no savings!!!! It's always something!!"

"I'm lucky if we have $500-$1K for an emergency. every single time we start saving something happens. the vet, the cars, the kids... something."

"Savings account? I transfer money each paycheck but always end up needing to transfer it back. My husband makes great money too but we are scraping by."

"$803 but we have to pay a $750 deductible this week b/c my Husband hit a deer soooo… back at it 😭 It’s exhausting. Constantly draining it, refilling it, transferring."

Some people shared that they do have some savings, but several said it was because they'd had an inheritance or other chunk of money come their way. Many people shared that their savings has dwindled as increased costs have taken their toll. Some people gave lifestyle advice to save money, but most agreed that just the basics have gotten so expensive it's harder to make ends meet much less put extra into savings.

Thankfully, the inflation issue appears to be waning, but even just plateauing at their current financial reality isn't ideal for many American families. Middle class is supposed to be a comfortable place to be—not rich, but well enough off to feel secure. That's not how many middle class folks feel, though. Most Americans don't have anything close to the amount of money saved that is recommended across the age spectrum, but at least hearing that others are in the same boat is somewhat comforting.

It can be vulnerable to put your financial reality out there, but it's helpful to hear what other people are doing and dealing with so we all feel less alone when we're struggling. Perhaps if people were more open about money, we'd all be able to help one another find ways to improve our financial situations rather than lamenting our empty savings accounts and wondering how to change it.

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economy
Education

The amount of money Americans budgeted for food 100 years ago is mind-boggling

If we think our grocery bills are high now, it's nothing compared to what families spent in the early 1900s.

Photo by Karsten Winegeart on Unsplash

Even if we shop at the most expensive stores, we still don't spend as much of our income on food as they did in 1901.

As inflation following the COVID-19 pandemic peaked in the summer of 2022, Americans keenly felt it at the grocery check-out. It seemed as if prices had gone up on everything, and our food budgets took a hit. Even though inflation has eased since then, many of us are still lamenting the amount we're spending on groceries and dining out every month.

A New York Post headline ominously pronounced in February 2024 that "Americans have not spent this much of their incomes on food since the Gulf War," citing a federal statistic that U.S.consumers spent 11.3% of their disposable income on food—a higher percentage than we've seen in the past 30 years.

But as they say, it's all relative. While we balk at spending 11% of our income on food, families in the early 1900s would have been thrilled at spending that little on food.

According to the Bureau of Labor Statistics, Americans spent a whopping 42.5% of their household budgets on food in 1901, nearly four times what we spend now. In real numbers, that means the equivalent of a household with the current median income of almost $75,000/yr spending $2,610 a month on food. And that was the reality for a long time—even a few decades later in the 1930s, people were still spending more than a third of their income on food compared to our 11% today.

And the economy, while different in its nature, wasn't drastically different in terms of numbers at that time. The unemployment rate for Americans in 1901 was 4.0%, approximately the same as March of 2024. The country was between two mild recessions and it would only be two more years before it overtook Britain as the world's wealthiest nation. It's not like there was some huge economic downturn that had caused food prices to soar at that time. Food just cost a whole lot more relative to people's income back then.

Okay, so food budgets were high relative to income back then, but what about housing? Surely, people spent far less of their money on housing at that time, right?

Less, yes, but not by as much as we might assume. In 1901, housing made up 23.3% of the average household budget, while in 2022 it was 33%. Definitely an increase, but not as drastic as the decrease in our food budgets. (Caveat: Those percentages don't speak to everyone's individual situation—some Americans are spending upwards of 50% of their income on rent and utilities.) Our clothing expenditures have also gone down by a lot since 1901, from 14% of income to less than 3%.

So where is all of our money going to make our budgets feel squeezed? One spending category that's not even included in the 1901 statistics, which makes up double digit percentages of our spending today, is transportation. In 1901, the automobile industry was in its infancy, still a couple decades away from its first big boom that made cars commonplace. Now we have cars, buses, subways, air travel—and the fuel for all of those things—that people in 1901 simply didn't have to consider.

We also have technology like computers and smartphones now that have become more necessity than nice-to-have. And along with that, of course, we have copious entertainment extras that most of us can't imagine living without.

Another expenditure that doesn't show up in 1901 is healthcare, which takes up 8% of our budgets now. Did people simply not have healthcare expenses back then?

Basically, no, they didn't. According NPR, Americans spent around $5 a year ($100 in today's dollars) on medical care in 1900, primarily because there wasn't a whole lot of medical care to be had. We forget how far our advancements in medicine came in the 20th century, and that those advancements have a cost. Throw in the health insurance industry evolving in the middle of the 1900s, and now medical costs make up a decent chunk of our budgets.

It's fascinating to take a step back and look at the big picture of history when we find ourselves complaining about the price of a banana or a bag of rice. It's not that we can't or shouldn't feel frustrated when our cost of living increases, but when it comes to food budgets, we're living in pretty flush times, relatively speaking. Especially when we consider how much more access we have to different kinds of foods than ever before.

Fluctuations in retail prices have always occurred, of course, due to wars, recessions, etc., and some items have become more expensive while others have gotten cheaper, relatively speaking. But regardless of individual prices, if we find ourselves lamenting our curren grocery bill, it might help to remember how much more of the average budget food used to be. Even if grocery prices were to rise more, we still won't be anywhere near the percentage of our paychecks that food used to take up, and that's certainly something to be grateful for.

From Your Site Articles
finances
Joy

Couple lives permanently on cruise ships because it costs ‘half’ the price of life on land

"We now have a telephone bill, a ship bill and a few credit card bills for when we go ashore, but that's it.”

via George Desirpis/Pexels

A white cruise ship crosses the sea.

Given the rapidly changing cost of living in the United States, lifestyle options that once seemed luxurious are now starting to look like good deals. A growing trend is that retirees are choosing to spend their golden years on cruise ships instead of living in a retirement community.

The latest examples of this trend are John, 76, and Melody Hennessee, 64. Before retiring, John was a doctor and the couple also owned an art gallery in Stuart, Florida. In 2021, the couple sold everything and purchased an RV to see the country, but after a few years, they were exhausted.

“The constant maintenance, fueling, and planning,” he told Realtor.com.

So, instead, the couple, who had extensive boating experience, decided to cruise the world. In March 2021, they began boat hopping, moving from one cruise ship to another. “I've been a sailor all my life, and we love cruising and traveling,” John told The Daily Mail.

Every day, they wake up in a new location. According to Realtor.com, their favorite spots are Bora Bora, Santorini and Croatia.

The couple even found that it was cheaper to cruise-ship hop than live on land.

"We now have a telephone bill, a ship bill, and a few credit card bills for when we go ashore, but that's it," John told SkyNews. "We no longer have a mortgage or the expense of homes. We no longer have vehicle insurance, property insurance, or utility bills. The list goes on. We are certain cruising is cheaper."

"Right now, it is probably close to half of what it was when we lived on land,” he added. The couple is currently booked on cruises through December 2024, and in 2027, they will embark on the cruise of a lifetime. They have purchased a $2.9 million 600-square-foot cabin on the MV Narrative, a residential cruise ship. They will own the cabin as long as the ship is afloat.

Single 225-square-foot studio residencies on the boat start as low as $597,000.

The ship boasts 20 dining and bar concepts, a theater, 18 decks, laundry service, gyms, and hobby areas and it has a doctor and dentist on hand for emergencies.

The couple loves the hassle-free convenience of living on a cruise ship and they also get to see the world as well. “[The MV Narrative] is gonna take three and a half years to go around the world and every stop, they'll spend at least three to five days, which on a cruise ship you have just a few hours. We really love that concept,” John said.

Life is easy for residents of the NV Narrative because it’s all-inclusive. You never have to pull out your wallet, except for the occasional special meal. The all-inclusive fees start at around $2500 per month per adult.

“We're so excited. We just love the idea of having our own residence on a residential ship,” Melody told The Daily Mail. We are beside ourselves. We're really, really looking forward to it because, like we said, we're cruising now; we have 45 more cruises booked.”

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cruise ship retirement
Health

Feeling discouraged? Here's a simple, counterintuitive cure to get some joy back.

"It doesn't make sense, but boy, oh boy, does it work."

via TEDx SF and BĀBI/Unsplash

Mel Robbins at the TEDx San Francisco event.

There are a lot of reasons for people to get discouraged these days. The cost of living is through the roof. We’ve entered the early phases of an election year that Americans of all political stripes are dreading and an increasing number of people are dealing with mental health issues.

That’s why we’re sharing a simple piece of advice from Mel Robbins that can hopefully uplift those feeling down by providing them with a simple tool to help when they feel hopeless.

Mel Robbins is a popular podcast host, author, motivational speaker and former lawyer who caught the public’s attention with her 2011 Ted Talk, “How to Stop Screwing Yourself Over.”

“If you’re feeling really discouraged right now or just in survival mode, I have some counterintuitive advice to give you and it's based on research. I didn't believe it when I first heard it, but it actually makes a lot of sense,” Robbins starts her video.

Feeling discouraged? Here is my counterintuitive advice. 

@melrobbins

Feeling discouraged? Here is my counterintuitive advice. #melrobbins #dailyinspiration #mindsetmotivation #negativethinking #overwhelm #positivechanges #findyourhappy #spotlighteffect

“See, when things in life feel very hard, our brain tends to focus on what's not working,” she continued. “It magnifies the negative in your life and so it's all you see. And when all you see is the negative, it impacts your energy, and you feel tired, drained, and exhausted by the negative in your life.”

Her solution? Add “one thing” to your life that you love that’s positive. Many people are struggling with money these days, but there are a lot of positive experiences people can enjoy that cost very little or are free.

“Go paint this weekend. Go to an Art Museum. Go hang out with a friend. Sign up for a class. Start running again,” Robbins says.

According to Robbins, adding one positive thing will help divert your attention from your problems and focus them on the things that make life worth living. “You have something to look for, and the positive energy starts to wash away all of the negative things,” she said. “It doesn't make sense, but boy, oh boy, does it work.”

Psychological rehabilitation specialist Kendra Cherry agrees with Robbins in a piece she wrote for Verywell Mind. “When you find yourself ruminating on things, look for an uplifting activity to pull yourself out of this negative mindset,” she wrote. “For example, if you find yourself mentally reviewing some unpleasant event or outcome, consciously try to redirect your attention elsewhere and engage in an activity that brings you joy.”

One of the commenters on the video agreed with the importance of adding a little positivity to one's life because they ahd experienced the benefits first-hand. "My boss had us journal 3 positive things that happened each day. Did it for 3 weeks and it changed my life for years. Need to start it again," Kiki wrote.

“That’s amazing! Your boss was definitely on to something!” Robbins responded.

"Adding 1 positive thing instead of forcing everything to seem ok is great advice,” Eleni added. “You cannot ignore the reality, instead add positive moments.”

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mental health
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