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Why Gen Z's idea of 'financial success' is so vastly different than every other generation

A salary of nearly $600,000? Are they serious?

Photo credit: Canva

Gen Z's financial expectations are miles above the rest of us.

Have you ever thought about what threshold of income or net worth would make you feel successful financially? Not merely getting by or making ends meet, but like you've achieved a level of wealth that feels comfortable and secure? That number depends on a lot of factors, of course, depending on whether you have a family, the cost of living in your area and more. But as a survey of over 2,200 American adults shows, it also depends on your generation.

Averaging the numbers overall, Americans said a salary of $270,214 a year and a net worth north of $5.36 million would spell financial success for them, according to research from Empower. But those numbers are greatly skewed by the lofty ambitions of Gen Z, who say they'd need a whopping $587,797 a year salary to feel successful. Compared to Boomers with $99,874, Gen X with $212,321 and Millennials with $180,865, Gen Z's "financially successful" salary (as well as their response of $9.47 million for net worth) seems extraordinarily out of touch.

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Keep in mind, these numbers come from Gen Zers who are 18 years and older, so it's not like it's skewed by a bunch of 13-year-olds who have zero concept of money management. But how did young adults end up having such high expectations of what financial success means?

Here are a few possibilities:

Gen Z has been bombarded with aspirational content their whole lives

Instagram, TikTok, YouTube—these social media platforms include countless accounts designed to make us drool over aesthetics. Luxury travel. Beautiful homes. Fashionistas flashing name brand everything. The kind of content that used to be confined to "Lifestyles of the Rich and Famous" (yes, I'm dating myself) has moved into the mainstream and is now portrayed as a normalized ideal.

For older generations, "financially successful" generally meant being able to afford a nice house in a nice neighborhood, two new cars, a vacation every year and a solid retirement plan. It meant being able to send your kids to college and pay for a beautiful wedding without going into debt. It meant not worrying about money, but it didn't mean being able to afford all manner of luxury. Perhaps Gen Z sees success differently due to what they've seen on social media—and due to being the most marketed to generation in the least traditional ways.

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Gen Z is influenced by influencers who've gotten rich young

In past generations, wealth came with age and experience. Sure, there have always been people born into generational wealth, but if we were talking $600,000 a year salaries, we'd be talking CEOs and hedge fund managers and heart surgeons other careers that take some time to build.

But Gen Zers see YouTube creators and Twitch streamers their own age making millions doing things they believe they can do themselves. That's got to skew your perception of what's possible and what's a reasonable amount of money you can expect to make. It's entirely possible that a lot of these young adults simply don't realize what a normal salary is. Considering the fact that their "financially successful" amount is nine times the 2023 national average yearly wage, there does seem to be a disconnect between their perception and reality.

Gen Z grew up hearing repeated messages of financial uncertainty

Gen Zers are familiar with financial crises. They just started coming along when 9/11 happened, and they were still little when the housing market crashed. They've grown up hearing their parents talk about financial upheaval and hearing politicians use the economy as a weaponized talking point. The COVID-19 pandemic threw even more economic uncertainty on an already teetery foundation, right when a lot of Gen Zers were just starting to make their own money. Toss in the bonkers cost of college tuition, unaffordable housing and post-pandemic inflation and it's not hard to see why young adults just starting out might be under the impression that they need a megaton of money to feel financially secure.

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Oddly enough, they're quite confident that they'll get there

One might assume that these sky high Gen Z dreams of financial success would feel out of reach for these young folks, but according to Empower, 71% of Gen Z respondents said they expected to achieve financial success in their lifetimes—more than any other generation. Is that an admirable sense of optimism or the hubris of youth? Are they setting themselves up for success or disappointment with such expectations? Hard to say.

We live in unprecedented and unpredictable times, so anything is possible. And if you're going to have high expectations, you might as well have the confidence to match them. We olders might roll our eyes at Gen Z's standard being so much higher than our own, but maybe they're onto something. (After all, a good chunk of them seem to be getting by without driver's licenses, so who knows what else they're capable of.) Dreaming big has its merits, so more power to you, Gen Z. Only time will tell if reality has other plans.

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money

Education

A story about two pairs of boots illustrates how rich people get richer in ways poor people can't

It’s got nothing to do with bootstraps.

Photo by Maxim Hopman on Unsplash

The Sam Vimes "Boots" Theory of Socioeconomic Unfairness explains one way the rich get richer.

Any time conversations about wealth and poverty come up, people inevitably start talking about boots. The standard phrase that comes up is "pull yourself up by your bootstraps," which is usually shorthand for "work harder and don't ask for or expect help." (The fact that the phrase was originally used sarcastically because pulling oneself up by one's bootstraps is literally, physically impossible is rarely acknowledged, but c'est la vie.)

The idea that people who build wealth do so because they individually work harder than poor people is baked into the American consciousness and wrapped up in the ideal of the American dream. A different take on boots and building wealth, however, paints a more accurate picture of what it takes to get out of poverty.

Author Terry Pratchett is no longer with us, but his writing lives on and is occasionally shared on his official social media accounts. Recently, his Twitter page shared the "Sam Vimes 'Boots' Theory of Socioeconomic Unfairness" from Pratchett's 1993 book "Men At Arms." This boots theory explains that one reason the rich are able to get richer is because they are able to spend less money.

If that sounds confusing, read on:

\u2026 He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of okay for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars\u2026\n2/5
— Terry Pratchett (@Terry Pratchett) 1643144843

Pratchett wrote:

"The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."

In other words, people who have the money to spend a little more upfront often end up spending less in the long run. A $50 pair of boots that last five years essentially cost you $10 a year. But if you can only afford $10 upfront for a pair of boots that last six months, that's what you buy—and you end up paying twice as much over a five-year period.

There are so many areas in which this principle applies when you're poor. Buying in bulk saves you money over the long run, but you have to be able to afford the bulk cost up front. A reliable car that doesn't require regular repairs will cost more than a beater, but if the beater is all you can afford, that's what you're stuck with. You'll likely spend the same or more over time than if you'd bought a newer/higher quality car, but without the capital (or the credit rating) to begin with, you don't have much choice.

People who can afford larger down payments pay lower interest rates, saving them money both immediately and in the long run. People who can afford to buy more can spend more with credit cards, pay off the balances, build up good credit and qualify for lower interest rate loans.

There are lots of good financial decisions and strategies one can utilize if one has the ability to build up some cash. But if you are living paycheck to paycheck, you can't.

Climbing the financial ladder requires getting to the bottom rung first. Those who started off anywhere on the ladder can make all kinds of pronouncements about how to climb it—good, sound advice that really does work if you're already on the ladder. But for people living in poverty, the bottom rung is just out of reach, and the walls you have to climb to get to it are slippery. It's expensive to be poor.

When people talk about how hard it is to climb out of poverty, this is a big part of what they mean. Ladder-climbing advice is useless if you can't actually get to the ladder. And yet, far too many people decry offering people assistance that might help them reach the ladder so they can start taking advantage of all that great financial advice. Why? Perhaps because they were born somewhere on the ladder—even if it was the bottom rung—and aren't aware that there are people for whom the ladder is out of reach. Or perhaps they're unaware of how expensive it is to be poor and how the costs of poverty keep people stuck in the pit. Hopefully, this theory will help more people understand and sympathize with the reality of being poor.

Money makes money, but having money also saves you money. The more money you have, the more wealth you're able to build not only because you have extra money to save, but also because you buy higher quality things that last, therefore spending less in the long run. (There's also the reality that the uber-wealthy will pay $5,000 for shoes they'll only wear a few times, but that's a whole other kind of boots story.)

Thanks, Terry Pratchett, for the simple explanation.

This story originally appeared two years ago.

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culture

Community

6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

Map via Wikimedia Commons (multiple creators)

State minimum wages range from $7.25/hr to $17.00/hr in 2024.

Public discourse about minimum wage and living wages has been ongoing for years, with people debating whether the government should mandate a minimum hourly pay for workers. President Franklin D. Roosevelt signed the first federal minimum wage law in 1938, setting the lowest wage a worker could be paid at 25 cents per hour. Nearly a century later, the federal minimum wage is $7.25/hr, holding steady since 2009, with people lobbying to raise it to at least $15/hr for over a decade.

However, in addition to federal law, each state has its own laws, a handful of which establish a state minimum wage higher than $15, a handful of which don't have a set minimum wage at all and everything in between. Cost of living has also been a hot topic as inflation has squeezed everyone's wallets and certain cities and states have become utterly unaffordable, especially for people in low-wage jobs or who who are just starting out in their careers. So how do minimum wage and cost of living correlate state-by-state? Are there any sweet spots with a high(er) minimum wage and low(er) cost of living?

While there’s no perfect storm of super low cost of living and super high minimum wage—for instance, Washington, D.C. has the highest state minimum wage at $17/hr, but housing costs 140% more than the national average—there are some states where the ratio is far more favorable than others. According to Insider Monkey, here are the top six states where you can get the most bang for your minimum wage buck.

6. New Mexico

The Land of Enchantment offers a relatively decent living for its $12/hr minimum wage thanks to the state's below average cost of living. According to Rent Cafe, housing in New Mexico is 8% lower than the national average, monthly utilities are 9% lower, food is 4% lower, transportation is 3% lower and healthcare, goods and services are 2% lower.

According to Smart Asset, Albuquerque, New Mexico ranks as No. 10 in U.S. cities where minimum wage goes the furthest.

5. New Jersey

The Garden State's relatively higher-than-average cost of living is counteracted by relatively solid minimum wage of $14.13/hr. Most of the cost of living in New Jersey is wrapped up in housing, which is 30% higher than the national average, according to Rent Cafe, and utilities, which are 12% higher. Goods and services are 5% higher, but healthcare is 2% lower than the national average. Food and transportation are 1% and 2% higher, respectively.

4. Connecticut

With both a cost of living and minimum wage slightly higher than New Jersey, Connecticut rolls in at No. 4 with a $15/hr minimum wage. Where the Constitution State hits hardest is in utilities, which Rent Cafe places at 30% higher than the national average, and housing, which is 24% higher. Healthcare and goods and services are both 9% higher, while transportation and food are just 1% and 2% above average.

3. Missouri

The Show-Me State says, "Show me the money!" with its somewhat respectable $12/hr minimum wage, which goes pretty far with its relatively low cost of living. Housing is the biggest cost benefit Missouri offers at 18% lower than the national average. But utilities, food, healthcare, and goods and services are also all below average, with only transportation landing right at the national average.

Additionally, St. Louis clocked in at No. 5 for a minimum wage real-world value of $13.68 when adjusting for the city's lower-than-average cost of living.

2. Washington

With the highest state minimum wage in the nation (unless you count Washington, D.C.), Washington's $16.48/hr puts it in second place when accounting for cost of living. Make no mistake, Washington isn't cheap overall, with a cost of living 15% higher than the national average. Housing and transportation hit hard at 29% and 27% higher than the national average, respectively. Healthcare is pricey as well at 20% higher than average. Food costs 12% more, but utilities clock in at 7% less than the national average.

Two cities in Washington hit the top 15 for highest real minimum wage value, though, with Seattle at No. 13 and Spokane at No. 2.

map of united states with these states highlighted in green: Washington, New Mexico, Missouri, Illinois, New Jersey and Connecticut

These six states offer the best minimum wage to cost of living ratio.

Created with mapchart.net

1. Illinois

If you want the best bang for your minimum wage buck, head to the Prairie State with its $13/hr minimum wage and 8% lower than average cost of living. Housing in Illinois is 22% lower than average and utilities are 10% lower. The only expense that comes in higher than average for Illinois is transportation at 3% above average, which isn't enough to keep it out of the top spot.

However, there are some minimum wage sweet spots in certain U.S. cities that aren't reflected in these state rankings. According to Smart Asset, Denver, CO, is the city where minimum wage goes the farthest in the nation. Colorado comes in at a respectable 7th place in state minimum-wage-to-cost-of-living ratio, but Denver has its own mandatory minimum wage of $18.29/hr.

A citywide minimum wage is part of what puts Seattle at the No. 13 spot on that same list. Seattle is one of the most expensive cities in the U.S., but its $19.97 minimum wage for most workers changes the ratio in its favor.

Other cities in the top 10 include Buffalo, NY; Minneapolis, MN; Tucson, AZ; St. Paul, MN; Phoenix, AZ and Stockton, CA.

The minimum wage conversation may vary widely across the U.S., with different costs of living and different state laws on the books. But if you're looking to move someplace where your wage will go the furthest, these six states will likely be your best bet to check out first.

This article originally appeared in June.

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economy

Education

9 super simple things people can do to save money that are often overlooked

Doing all of these things really adds up.

Photo credit: Canva

People might not consider driving the speed limit to taking care of your teeth as money-savers, but they are.

No matter how the economy is doing at any given time, people are always looking for ways to save money. Rents go up. Job losses happen. Kids need braces. Retirement looms.

Financial advice often focuses on where to put your money for the best returns, but that advice is only helpful if you have extra money to save or invest. Money-saving tips can help free up some cash to save or invest, and they can also help you avoid having to put borrow money or use credit for things you can't immediately afford.

While some people understandably scoff at frugal tips like "eat less avocado toast"—as if saving a few bucks here and there will solve the housing crisis or make college affordable—there is something to be said for small amounts adding up. For instance, not buying a soda when you're eating out to save $4 may not seem like much, but if you did that once a week, you'd save over $200 in a year. Not a fortune, but nothing to sneeze at either.

And if you start combining lots of small money-saving habits like that, you may be surprised at what a difference it makes. Here are nine super simple ways people can save money—but often don't—from users on Reddit:

Take good care of your teeth

"An ounce of prevention's worth a pound of cure," as the saying goes. Toothbrushes and dental floss are cheap. Cavities, root canals and gum disease are wicked expensive. Good oral hygiene may not be the first thing you think of when it comes to saving money, but ask anyone who has neglected their teeth how much it has cost them in the long run.

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"Take care of your teeth: brush and floss everyday - preventative care now will save you THOUSANDS later if you need major dental work!

"Yup. This is often overlooked advice. My mom had lost most of her teeth by the time she was my age (40). She always said that this was her biggest regret in life. Because of this, my siblings and I have always been pretty good about taking care of our teeth. Right now my mom has dentures that don't fit well because she lost another of her remaining teeth but can't afford new dentures."

"As someone who has paid a thousand and will pay many thousands more in the near future…yes. Take care of your teeth."

"Can confirm! Just spent 20,000 on my teeth. Talk about eye opening!!!"

Only drink water

Drinks are expensive, and not just fancy ones. A basic soda will set you back $3 or $4 minimum at most restaurants, and everything else goes up from there. Water is free. Even at home, you can save a lot by simply drinking water. It's a simple rule that helps improve the health of your body as well as your bank account.

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"Drink water at restaurants and not soda."

"Only drink water. Not only will you save money, but your body will love you for this as well. Win\win."

"Water is my biggy. Don't drink soda period. Filtered at home. Doing this for 5 years and seriously tastes so good."

"Yep. Just take a look at what restaurants charge for a soda. It's usually around $3 now. Then, look at how many empty calories are in a 20 oz soda. It's basically 10% of your daily value on just one drink. Not worth it."

"If I learned anything in the military... drinking more water solves 99% of all problems."

Use the library (not just for books)

Free reading material? No brainer. But libraries have so many more free services that people often don't know about. From movies to language learning apps to artwork and tools you can check out, the range of things you can get from the library is wild. Definitely worth checking out your local public library's offerings if you haven't lately.

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"Make use of free services. Mostly, the local library. Sometimes there's a feeling that just because it's free it's trashy or peasant-like. I don't need to pay to see something in order to feel good about it. And libraries are amazing! Free books! Audio books! So many things."

"My library has tools and equipment available to borrow. Before going to big orange to rent a pressure washer, floor sander, paint sprayer, or post auger, I always check the library first lol"

"Public libraries are a gold mine for (almost) free. Ask them about their other options (than books, movies, music, etc.). Many libraries offer museum passes. I’ve heard of fishing poles. My library has a seed library."

"Ours you can check out a sewing machine. Plus attend a free workshop to learn how to sew!"

Ditch DoorDash

I know. All of those food delivery services are so convenient. But they're also soooo expensive. If you're in money-saving mode, definitely avoid these services like the plague. Just pretend they don't exist (because they literally didn't until very recently).

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"This. Your meal is easily 50% more expensive when you factor in delivery fees and a tip. and some restaurants charge more on door dash than they do in-person."

"Delivery fee? That's just the tip of it! Ever notice how there still is a bunch of extra fees on top even when they offer you the delivery fee for free?"

"And to make it worse, I tell myself that I have to order more food to justify the delivery fee! So now just paying more and overeating."

"It really is an addictive habit. We started using it during the pandemic and it really just was a bit of convenience that we found hard to give up because it was so easy... Pick up your phone, order, get delivery, eat, done... Every time we saw the card, we knew that the delivery fees were what was pushing our eating out budget way over but after a hard day of work and school, it was easy to convince ourselves that delivery is a worthwhile indulgence and the expenses add up real quick. It took us a lot of introspection and telling ourselves that we were 'sacrificing' for the future, and all that to stop ordering via delivery apps and within a couple of months, we saw us being closer to managing our budget."

Drop addictive substances

Addiction is a huge and tricky challenge, for sure, and I don't want to minimize how difficult this tip might be for some. But drinking, drugs, smoking, vaping, gambling—they all cost a lot of money. And the addictive nature of them means that you'll just keep spending more and more.

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"Quit addictive habits: Smoking, drinking, coffee, weed, etc. They're all expensive and you'd save a bundle quitting. But people don't because they think those things make life better. Some do and some don't, but the monetary savings can't be discounted. If you're broke, don't smoke or drink. Some people truly need weed for health problems. But nobody needs the others."

"Stop drinking and smoking, the government punishes you with a sin tax and makes big time bank of your vices."

"Seems obvious but quitting smoking. I see so many people complain about being broke but spend hundreds a month on ciggs."

"Stop drinking, smoking and going out so often. You'd be surprised how good sobriety feels! Even if you continue, just slow down!"

Say no to storage

Most of us have too much stuff. There is an entire industry around trying to help people pare down and "declutter," and there's an entire industry dedicated to renting people space to store their excess stuff. Making a rule to only hold onto the belongings that actually fit in your home will save you a lot of money in storage.

"More prevalent in the US, but get rid of your storage unit and most of the stuff in it. More often than not, you're paying more to store things that it would cost to buy it all again. If you can't fit it in your home, re-evaluate if you really need it."

"There are so many huge storage unit buildings in my area and it makes no sense to me. How important can this stuff be if you can't fit it in your home? I understand there are certain situations that require for a short term solution."

"That was my goal for 2022, Took me a few Saturdays to go through everything but it was worth it. I'm having over $200 a month now."

Cook at home a lot more

Even when inflation makes grocery prices uncomfortably high, it's still almost always cheaper—often significantly so—to cook food at home compared to eating out. Yes, that even goes for fast food. There are a million videos and social media channels dedicated to cooking and recipes can be found for free all over the internet.

via GIPHY

"Cook at home 98% of the month."

"Cooking/meal prepping VS Eating out every night."

"Batch cooking saves both time and money. Like you can spend 2 hours making meals for the rest of the week. Paying 8-15 dollars to eat out adds up very, very fast, if you do it regularly, to keep up with work or personal schedules."

"Learn to cook what you like to eat."

Drive the speed limit

This isn't one people usually think about, but driving the speed limit saves you money in several ways. For one, it's gas-efficient, and with the cost of gas in some places, it's worth easing up on the gas pedal. Second, speeding tickets are expensive, plus they lead to higher insurance premiums.

via GIPHY

"For those that don't get this: driving the speed limit avoids citations but also saves you gas, extends oil life and tires some, extends brakes quite a bit, and just generally lowers the wear and tear on your vehicle."

"This is so underrated, I don’t think enough people realize the extra cost of driving fast."

"It also only gets you there maybe 1-2 min faster, at best. Hitting Traffic lights at the wrong time will ruin any gains made by speeding. And only if you don’t get caught. Get caught and get points on your license, a fee, and it delays you 20-30 minutes."

"Your car insurance rates go up when you get tickets also. Get too many, and they may drop you."

"My step-sister was saying she pays the city about $500 a month in speeding tickets and parking tickets. The real wild thing is she said it like its a normal thing everyone has to deal with, like she was shocked when we didn't say 'Well that's <CITY> for you. What can ya do?'"

Fix things yourself

Many people never consider trying to fix something themselves, assuming that sort of thing is best left to the experts. But there are so many resources now with YouTube videos and such that can help walk you through a lot of fix-it projects that can save you boatloads. Not everything can be a DIY, of course, but probably more than you might think.

via GIPHY

"I've saved thousands of dollars by repairing things myself following YouTube videos. Washer, dryer, automotive stuff, cell phone screen replacements, etc."

"There is a website, repairclinic.com. They not only have tons of videos on how to fix stuff, but they also sell parts. I have a dryer that’s over 40 years old. I can’t get parts for it in regular stores. That website has been a lifesaver! I’ve been able to keep the thing going for the last decade and it works great! I’ve spent maybe $75 over the years to keep it running. Definitely cheaper than a new one."

"If you tackle things within reason it saves a butt load of money. $350 mechanic bill turns into $16 part and 1hr of your time."

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money

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.

This article originally appeared on 7.17.24

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economy

Education & Information

Man breaks down how living in an all-inclusive resort is cheaper than his average apartment

"I just might find myself on a beach somewhere sucking down cocktails and WHAT OF IT."

Representative Image from Canva

Are resorts the new retirement homes?

Don’t know if you heard, but the cost of living is pretty high these days. Prices for groceries, restaurants, gas, and other necessary items just to, you know, live in the world, reaching an all time high is already making what used to be a decent wage barely enough to get by.

And let’s not forget the biggest financial whammy of all: rent prices. According to Zillow, the average rent price in the US was $1,958 ( recorded in January 2024). That a whopping 29.4% price jump since pre-pandemic times. And of course, that not even taking larger, more expensive cities into account.

It’s enough to make you wonder: “Is it actually cheaper to just live in an all-inclusive resort at this point?”

This question was certainly on Ben Keenan’s mind. In a now-viral TikTok, the 31-year-old compared the cost of living in a resort to that of his Seattle apartment. And let’s just say…it sparked a conversation.

Keenan broke down how much he spent each month on essentials like rent ($2300), utilities ($300), WiFi ($40), car/insurance ($320) and groceries ($400), plus nice-to-haves like dinners out ($300), drinks ($300) and his gym membership ($40). All totaling to $4000.

The first all-inclusive resort that Ben showed, located in Mexico, was priced at $4,500. For a little more, Ben could get everything he was used to having, minus any chores.

"Yes, that's $500 more than what I normally spend on rent, but bear in mind, I'm not paying the most expensive rent out there compared to, like, what other people in Seattle might be paying, for example. Also, is that $500 worth me never having to do a single ounce of laundry or any of my cleaning or whatever?" he said in the clip.

The next resort in the Dominican Republic would be $3,100, already cheaper than what he currently pays. And if he were to, say, split a double room with a roommate, well…you don’t have to be good at math to know that’s a lot less.

In the video's caption, it seems pretty clear that Keenan might be tempted to abandon it al fo that sweet resort life.

"I just might find myself on a beach somewhere sucking down cocktails and WHAT OF IT," he wrote.

@ivebentraveling Honestly, kind of a joke but kind of serious - I might just find myself on a beach somewhere sucking down cocktails and WHAT OF IT 😩 #allinclusive #allinclusiveresort #resortlife #livehack #mexico #dominicanrepublic #travel #travellife #travelmeme ♬ Funny video "Carmen Prelude" Arranging weakness(836530) - yo suzuki(akisai)

Down in the comments section, Keenan’s video struck up a conversation about another affordable alternative lifestyle: cruises. A few even referenced Nancy and Robert Houchens, the retired couple who famously began living on cruise ships because “it’s cheaper than a nursing home.”

Not to mention…it inspired some pretty funny (if not a little bittersweet) jokes from millennials.

“New retirement plan” rent our house and live at an all-inclusive resort with a butler til I die,” one person wrote.

“All inclusive resort aka millennial assisted living,” another quipped.

And perhaps the most millennial joke of them all: “‘Suite Life of Zack and Cody’ got it right all along.”

It’s no secret that many working adults can’t foresee a future where they’d be able to afford the same “American Dream” that their parents achieved. And if having a forever home isn’t a possibility, traveling the world or enjoying a relaxing retirement very well might be the next best thing. And even if finances aren’t an issue, this kind of lifestyle just might align with current values a bit more.

This article originally appeared on 2.19.24

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A guy and his friends shared their travel plans. The results perfectly explain the wealth gap.

What on Jeff Bezos's green earth did we just watch?

TikTok/@tcruznc

Sometimes you see something so mind-boggling you have to take a minute to digest what just happened in your brain. Be prepared to take that moment while watching these videos.

Real estate investor and TikTok user Tom Cruz shared two videos explaining the spreadsheets he and his friends use to plan vacations and it's...well...something. Watch the first one:

What in the wealth is thispic.twitter.com/NTPTKT5CZG
— Karim Alammuri (@Karim Alammuri) 1629292830

So "Broke Bobby" makes $125,000 a year. There's that.

How about the fact that his guy has more than zero friends who budget $80,000 for a 3-day getaway? Y'all. I wouldn't know how to spend $80,000 in three days if you paid me to. Especially if we're talking about a trip with friends where we're all splitting the cost. Like what does this even look like? Are they flying in private jets that burn dollar bills as fuel? Are they bathing in hot tubs full of cocaine? I genuinely don't get it.

To be crystal clear here, the top 5 friends on the Forbes list are willing to spend more than double what the guy at the bottom of the Welfare 10 list makes per year on a 3-day guy's trip. I don't know what to do with this information.

But that's not even the full spreadsheet. It might make sense if this guy was just rich, had always been rich, only knew rich people, and therefore having multiple millionnaire friends was his normal. Surely that's some people's reality who were born into the 1%.

That's not the case here, though, because Cruz also has a Welfare 10 list. He says this group of friends who make less than $100K a year call themselves that, and perhaps that's true. (If I were a part of this group, I might call myself a welfare case too because everything's relative and some of these dudes spend more in an hour of vacation than I spend on my mortgage each month.)

It's like we can see our society's wealth gap all laid out nice and neatly in a spreadsheet, only these people aren't even the uber-wealthy and uber-poor. This is just the range of this one guy's friends.

I have nothing against people who build success and wealth for themselves, and even $5 million per year is hardly obscenely wealthy by billionaire standards. But Cruz says he's known most of his "welfare" friends since college, which presumably means most of those guys have college degrees and are making pittance in comparison with the Forbes list. One could claim the guy making $5 million a year just works harder, but does he really work 100 times harder than the guy making $50,000? Doubt it.

Money makes money, and after a certain threshold of wealth or income, it's actually quite easy to get and stay rich without actually "earning" more money, assuming you're reasonably wise and responsible. So maybe the guys who are willing to shell out $125,000 for a week-long trip should offer to pay the travel expenses of the friends they "hang out with regardless of income" who don't even make that in a year, since that's probably just the interest they're making on their wealth anyway.

But what do I know? This is like an entirely different world to me and probably 99+% of Americans, as evidenced by some of the responses.

Naturally, there will be a range of incomes in any group of people, but 1) most of us don't actually know how much our friends make, and 2) even fewer of us make spreadsheets with that information in order to rank our friends and figure out who can go on which vacations.

People are just endlessly fascinating. That's all I've got.

This article originally appeared on 08.20.21

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