Paycheck to Paycheck

No matter how much you make or how little you make, you will use the phrase "paycheck to paycheck." So why does it seem so different as compared to nearly 30 years ago when my parents were raising a family of 3 on a modest middle class wage? The answer, still boggles many of my social circles today...but let's look at a few of the facts we have uncovered:

First of all, the late 70's provided a time when a average salary of $40,000 could get you into a nice home. For example, in the Midwest, in a nice suburb outside the city limits you could get a 2000 sqft. home with 4 bd. 2 ba for around $100,000. Today that same house with some updates will now command a price tag of up near $300,000 (and that's conservative). Yep...that is where we are today. Now instead of jumping 30's ahead, lets go 30's back into the late 1940's. Now granted a house of these proportions were few and far between but the standard Craftsmen Cape Cod style homes were around $50,000. So let's summarize;

• 1948-$50,000
• 1978-$100,000
• 2008-$300,000

does this make sense to anyone...please explain!

Next, in 1980 my parents never had a computer and therefore had no internet. No computers means that they didn't do online shopping($xxx/mos.), and would not have had a monthly internet service($60/mos) either. I am going to go out on a limb and say that this saved them about $1500 annually (not including the overall investment of a computer).

Another is the constant need for things. I like things they make me go fast, feel cool, look good...so what's wrong with that. For some of us nothing is wrong with it, but it teeters a fine line called GREED! Greed tends to lead us into battles of financial mayhem. Let's take the example of a name brand item, say purses, or to be more fair to both sexes we'll look at clothing. Suddenly the Levis at the local department store for $20 is not good enough we need the $150+ designer jeans. If we look at that example that would mean that we spend 87% more than what our mom and dad spent on an item. That is an extreme example, however the next time you go and purchase an item think about that percentage, or even 50%...I'd be willing to bet your spending thousand more that your parents did.

Lastly, another item we had discussed was how the format of companies has changed. By this I mean retirement benefits, health benefits, and general care for their employees. This may have not been as instrumental in the financial arena, depending on which companies you are comparing. However, the security and the stability a good job provides seems limited in today's world!

Personally I think all of these have affected me in form or another, not to mention many others that will need to wait for another post. You get the jist about the financial woes of living paycheck to paycheck. I've got to be honest though I am one lucky SOB to be living the life I am ...so God bless!!!