Yeah the OP seems kind of elitist?
There are trade offs of course—instead of 4 kids you might have 2. Your spouse might have to work part time or full time. Instead of a big house with a backyard you might go for a smaller place or somewhere farther out in the country. Instead of distant vacations, you might road-trip. 80k really is quite workable if your expectations and budgeting is solid.
It also shapes expectations over what we think we will be expected to pay for personally, and what those costs are likely to escalate to be by the time we must pay for them.
Give me $80k/yr and my quality of life locked in on that (healthcare/retirement included of course!) and I'd sign the paperwork tomorrow.
The issue is that there is no way the costs are going to be reasonable enough if I get "unlucky" to say that is anywhere near enough money. The difference gets put into savings, not spent.
My family who have never seen what things cost (e.g. subsidized medical insurance, etc.) are perfectly content and happy making far less, and state that it's simply lifestyle inflation for others. I think it's more ignorance is bliss, and they always know (and utilize) the fact they have family doing much better than them to call if times get truly tough.
When you're the only backstop you have for yourself, and likely many others counting on you, that $80k sounds like pretty much nothing running a few not-ideal life scenarios.
tldr; $80k certainly gives a very reasonable lifestyle, but as soon as the music stops it turns into pain city really fast. It's less needing more money to have a nice lifestyle, and more middle class economic insecurity.
> Instead of 4 kids you might have 2
Ok.
> Your spouse might have to work part time or full time
This isn't "just fine". There is significant overlap in child success and a stay at home parent. There should be no case where a job at the caliber of ENGINEER cannot support a family to provide such an environment.
> Instead of a big house with a backyard you might go for a smaller place or somewhere farther out in the country.
You don't even get this at 80,000 if you want to live within 50 miles of any metro with jobs. Engineering jobs even more so. Going back to your statement before you now have a contradiction:
1. Have a spouse work
2. Have someone to drop your kids off at school because you live in the sticks
I don't think you have actually experienced trying to do exactly what you proposed. Inflation and free money has created an environment hostile to having anyone but the state raise your children. I got a house extremely cheap in a middle-cost-of-living area (~50% markup over price prior to GFC, low 200s). If I was making 80,000 a year I wouldn't be able to afford this modest starter home. That's bullshit. There is no question. Starter homes haven't been cheap enough to afford on a single 80,000 salary in my area for 25 years.
You can afford a modest starter home on 80k a year if you're not carrying any debt, lenders cap DTI around 40%, or $2600/month, although your finances would be tight, and you wouldn't be able to live in a state with excessive taxes like California.
2023:
- Median US Home Price is $436,000
- Average interest rate: ~6%
- Monthly payment on $348k (20% down) @ 6% = $2,086/month
If we waited to save up 20% we still wouldn’t have bought a house because it would have taken several more years and then the home prices jacked up 40% during the pandemic. Instead our home went up in value by that much instead.
For your example house they’d have to have saved up $70,000 ahead of time. For people that rent and aren’t in tech that’s not too feasible, especially considering they may have that much in student loans also.
I know a couple that managed to do it but they lived (as a married couple) with their parents for several years instead of renting so they could save up for it.
Like a negative correlation?
I can't imagine a stay at home parent is better than paying for school/socialization.
Then you don't live in one of the lowest COL areas. In my US state, the median income is $50k/yr and most people manage to house and feed multiple kids.