EVERYTHING Too $$$ Now

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7Wannabe5
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Re: EVERYTHING Too $$$ Now

Post by 7Wannabe5 »

The diner down the road from me, $4.99 breakfast special; 2 eggs, hashbrowns, breakfast meat, toast*. served by a friendly and efficient middle-aged woman who calls everybody "Hon." If you want the best deals on eating out, you need to follow the old, chubby people :lol:

*Definitely not on the healthy side, and I could make it a bit cheaper at home**, but mostly I am paying for the experience of eating in a booth. Booth seating is the best. Also one of the things I love about campers.

**I think I feel psychologically entitled to occasionally indulge myself by eating out, because I work teaching other people's kids, so kind of like it's fair deal if somebody offers me service as a waitress, because I just helped her grandson learn how to multiply two digit numbers.

On the topic of growing income inequality, climate change could pretty much be solved by knocking everybody spending above U.S. median PPPdown to U.S. median PPP. Reducing spending to 1 jacob per capita is only necessary if everybody currently spending less than that globally is brought up to that level, with global median now a bit above .5 jacobs. $30,000 = 4 global jacobs, but $120,000= 16 global jacobs = 30 median global citizens= 600 humans in bottom 10% global income/spending. And $120,000 is low estimate for just the cut-off for top 10% U.S., the jump to the top 1% is even more extreme.

IOW, knocking all the global top spenders down to median PP U.S. income/spending per capita while leaving the bottom unchanged approximately equals re-setting the lifestyle of every human on the planet either up or down to equal out at the current median for Guatemala.
Last edited by 7Wannabe5 on Wed May 03, 2023 2:18 pm, edited 1 time in total.

theanimal
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Re: EVERYTHING Too $$$ Now

Post by theanimal »

TopHatFox wrote:
Wed May 03, 2023 12:39 pm
@lemur, could be. Also, everyone’s frame of reference is now as big as the world, because income data is now available in detail for pretty much the entire west, from the custodian to the coder to the CEO. There also seems to be a skew on perception of income on social media. I often see ppl saying 100k isn’t much on social media, but 250k - that’s where it’s at. I’m just thinking, that’s a tiny % of the population. Could explain why ppl don’t wanna work as much; why work hard if your share of the pie is relatively small despite working 50 hrs/wk.
The frame of reference may be as big as the world but it is severely skewed to the upside. If you make more than $50/day you are in the top 7% of world income earners. Meaning everyone in the US that has a full time minimum wage job is in the global top 7% for income. At $70k per year that would bump you even higher to in the top 1% of earners, more specifically somewhere in the realm of 0.1-0.5% of earners globally. You're not the one being prevented from eating the pie, you're the one eating it.

TopHatFox
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Re: EVERYTHING Too $$$ Now

Post by TopHatFox »

@theanimal, :O, I AM THE PIE.

I remember there was a cool slider that showed what % your income puts you in the global population. Hm, but is it really fair to compare a western income to non-western incomes, predominantly in India, China, & Africa? Cost of living is much lower in those countries (as is safety, stability, sanitation, building codes, QoL, etc.)

7Wannabe5
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Re: EVERYTHING Too $$$ Now

Post by 7Wannabe5 »

To adjust world PPP to u.s. PPP, multiply by around 1.4, so lifestyle adjusted top 10% globally is closer to median U.S. income spending of around $70/day per earner-household.

TopHatFox
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Re: EVERYTHING Too $$$ Now

Post by TopHatFox »

I guess that is outstanding if you break it down - at 70K/yr, I earn more than almost all of the people in China, India, Africa, SE Asia, the Middle East, SA & the C, eastern Europe, and all the little island nations. It really is just a few people in those countries that are filthy rich, namely oil barons, mine owners, etc. Feeling pretty smug lol.

Why does it not feel that way here in the US, tho? I doubt somebody earning 70K/yr here in a city is like: "damn, I'm the shit! Top 1 % baby!" My guess is it's because basic things are $$$ here. Like, if I wasn't handy & wanted a new basic-bitch sedan, that's easily $25K. If I want a used single-family house, that's easily 300K. If I wanted a undergrad & grad public education, that's 50K. If I get in a bad wreck, well, I'd be screwed.

For instance, a friend of mine earns 150K in LA after working his butt off for 10 years in a technical field, but a 3B 2B townhouse there near his work is 750K at 6% interest. Fair enough he doesn't have to and probably shouldn't work there (and I agree), but it's unlikely other places would pay 150K/yr, or even have his niche field.

---------------

https://worldpopulationreview.com/count ... by-country

Holy shit guys, I'm rich! My bonus is larger than an entire median salary in most of the world. Is it really that bad out there, maybe I got a bad chart? That's also mad depressing, cause it means most people in the world can't travel to visit other countries, especially western ones.

7Wannabe5
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Re: EVERYTHING Too $$$ Now

Post by 7Wannabe5 »

For purposes of comparison to the chart you linked, you should divide your salary by 1.4. However, the median earner in the U.S. is also supporting around .5 human, so if you fully supported a spouse* and a child on your new salary, your economic lifestyle would approximate the median.

*Why most who wish to maintain middle-class status feel like they must be two earner households.
Last edited by 7Wannabe5 on Wed May 03, 2023 3:58 pm, edited 1 time in total.

AxelHeyst
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Re: EVERYTHING Too $$$ Now

Post by AxelHeyst »

Many people aren't *allowed* to leave their countries even if they could manage it (e.g. Morocco).

theanimal
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Re: EVERYTHING Too $$$ Now

Post by theanimal »

It's probably also worth noting that Miami is one of the top status driven cities in the US, along with places like Dallas and LA. Meaning people like flaunting their wealth (real or not) and having flashy things like fancy cars and big houses. More so than in other big cities and far more so than nearly every other city in the US. So perhaps that (and maybe the people you are spending time with) is what is making you feel like you have to keep up with the Joneses.

AxelHeyst
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Re: EVERYTHING Too $$$ Now

Post by AxelHeyst »

+1. Find some dirtbags to hang out with!

7Wannabe5
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Re: EVERYTHING Too $$$ Now

Post by 7Wannabe5 »

It might be because THF is ESTJ Achiever rather than INTJ Analyst. The Hot-Swapper rather than the Serial Master.

chenda
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Re: EVERYTHING Too $$$ Now

Post by chenda »

AxelHeyst wrote:
Wed May 03, 2023 3:57 pm
Many people aren't *allowed* to leave their countries even if they could manage it (e.g. Morocco).
I'm pretty sure they can; the bigger problem will be finding a country willing to legally take you in. Which is why Ceuta and Melilla are surrounded by walls.

white belt
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Re: EVERYTHING Too $$$ Now

Post by white belt »

TopHatFox wrote:
Wed May 03, 2023 12:39 pm
@Lemur, could be. Also, everyone’s frame of reference is now as big as the world, because income data is now available in detail for pretty much the entire west, from the custodian to the coder to the CEO. There also seems to be a skew on perception of income on social media. I often see ppl saying 100k isn’t much on social media, but 250k - that’s where it’s at. I’m just thinking, that’s a tiny % of the population. Could explain why ppl don’t wanna work as much; why work hard if your share of the pie is relatively small despite working 50 hrs/wk.
To me, there seems to be a misalignment of values in your life. It's like you want so much to be part of the "tech bro" lifestyle/world that anything short of that feels like failure. I mean if you want to do that sort of coding work because you enjoy it, then sure that's cool. If you want to maximize everything in your salaryman work, I believe 7WB5 years ago rather comically pursued that lifestyle for a short time after reading Efficiency by WSP. The blueprint for that hyper-specialized lifestyle is well-documented in other parts of the internet. However, this is ERE land. So most folks on here are looking at things from a systems perspective rather than just trying to focus every ounce of energy on one thing (salary job). Of course, if you feel like your job is a calling/passion/profession then by all means go for it. You can design your lifestyle how you want.

Social media is by nature a bubble. That is, you will only see things from your peers that various algorithms want you to see based on your interests. So if you're making $100k a year, then you're going to feel pretty poor if everyone around you is making $200k. Meanwhile, if you started hanging out with a bunch of broke grad students or blue collar laborers making <$40k a year, all of a sudden you would probably be feeling pretty rich. If you want to detach from that, then you are going to have to redirect your social media time into something else. Also note that if you live in a HCOLA area and your social circle is all "rich" people, it may be harder to detach from this sort of thinking. Maybe that is a factor since you have spent so much time in South Florida, which is known for its lavish lifestyles.

The other thing I will point out is these ideas about the ladder of American Social Class: https://web.archive.org/web/20151006183 ... n-the-u-s/

If you are trying to change social classes, I recommend first identifying on the ladder where you grew up. Then you can try to identify where you are now (for most people it's the same class that they grew up in, but there are exception). If you want to climb the ladder, you can also get an idea of what it takes to get there. Note that the Gentry, Labor, and Elite are different in kind with regards to how they see the world, how they utilize money, etc etc. Also note that these are social classes, not economic classes. In other words, you can have very rich people who are still part of the Gentry or Labor classes. This could be owners of a highly profitable blue-collar business, as an example. You can also have poorer people who still think and act like Elites (think old money but perhaps the generational wealth has been squandered in recent generations). All this is useful to give you perspective on the world.

Edit: Here is a relevant excerpt regarding the issue of labor vs ownership:
The Elite Ladder (1.5%). This is an infrastructure “at the top of society”, but many of the people it includes are in many ways nowhere near the top. People complain about “the 1 percent”, but the reality is that most of that top 1.0% are nowhere near controlling positions within society.

Not all of the Elite are in the top 1% for income, but most will have the opportunity to be. The Elite includes everyone from billionaires to out-of-college investment banking analysts (who earn a middle-class income in one of the most expensive cities on the planet). What they have in common is that they are exerting themselves toward ownership. Labor provides the work and values effort and loyalty. The Gentry provides culture and it values education and creativity. The Elite owns things and values control and establishment.

TopHatFox
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Re: EVERYTHING Too $$$ Now

Post by TopHatFox »

7Wannabe5 wrote:
Wed May 03, 2023 4:14 pm
It might be because THF is ESTJ Achiever rather than INTJ Analyst. The Hot-Swapper rather than the Serial Master.
Don't think so, can go for days w/o human interaction + always analyzing patterns

Why do I need to divide by 1.4 again, and does that only apply to non-western nations?

---------------

& yes, the per capita really is huge. Economically speaking, kids don't really produce anything until mid-twenties these days. Hell, even I'm still receiving economic support in terms of having a place to stay with reduced rent. Women also tend to earn less on average/choose non-STEM fields, and someone needs to care for the kid or two. So then you get a STEM guy's salary split b/w a woman and one or two kids. If you divorce at a clip of 70% over 40 years, the lawyers split up whatever you saved, charge you, and you have child support to contend with. I can see how things go south quick. Maybe it's not that we don't earn enough as Americans, but that we lose a lot of it to cost of living, families, etc.

IlliniDave
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Re: EVERYTHING Too $$$ Now

Post by IlliniDave »

I just checked, at my neighborhood middle of the road locally-owned restaurant a 1/2-lb burger with cheese and bacon, plus a side of fries, is $13.00 plus tax. Although I have a lot of money in the stash, my current "income" (not derived from stash) is under $70K (net of taxes under $50K) and I'm underrunning that on an average monthly basis by something over 20% (or equivalently, you could call it a 20-some% savings rate). That's without any conscious belt-tightening on my part in a state that's relatively HCOL. Not very ere-ish by any stretch, but a higher savings rate than all but the last 7 years of my pursuit of FI/ER.

However, my nature is that I'm not going to go drop the $16 or so all-in for that restaurant burger very often. More likely to pay $16 for a small grass fed/finished ribeye.

Now that I'm buying organic/grass fed and finished/pasture-raised/whole food, unprocessed/nonGMO/etc., my food bill has gone through the roof. Looking at my monthly food costs I'm averaging something in the ballpark of $17/meal, which since I do OMAD is $17/day as well. So it's not like I'm living off of 50-lb sacks of roundup-soaked GMO beans and rice to achieve that.

AxelHeyst
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Re: EVERYTHING Too $$$ Now

Post by AxelHeyst »

chenda wrote:
Wed May 03, 2023 4:15 pm
I'm pretty sure they can; the bigger problem will be finding a country willing to legally take you in. Which is why Ceuta and Melilla are surrounded by walls.
Ah, yes you are right, but I think there's some of both... e.g. the rush on Ceuta in 2021 was in part fuelled by the Spanish-Moroccan spat that led to the *Moroccan* border guards relaxing/looking the other way. They're not there to keep Spaniards out, they're there to keep Moroccans (who lack the proper visas, which are very difficult to get) in.

The way Said put it to me when I was there was that "to get out you have to have a lot of money or be someone's son", e.g. the offspring of an important official.

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Seppia
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Re: EVERYTHING Too $$$ Now

Post by Seppia »

C40 wrote:
Wed May 03, 2023 9:24 am
Huh??? In the U.S., it's a pain in the ass to go eat out. It takes more work and more time than cooking at home.
chenda wrote:
Wed May 03, 2023 9:26 am
Why is that ?
His statement is true about everywhere on the planet outside of Asia.
Going to eat out one has to either walk or (more often) drive to the place.
Then there one has to wait, order wait eat etc.

At home you can easily
1/ go grocery shopping once a week then
A/ open fridge and cook something quick like an omelette or pasta or salad or
B/ cook two to three times per week in batch

Toska2
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Re: EVERYTHING Too $$$ Now

Post by Toska2 »

If you didn't figure out that every politician and big business has a vested interest in devaluing your money and time, THEY ABSOLUTELY DO.


What's your opinion on the Milk Shake theory and BRIC's reserve currency?
The way I read it, is that if the USA can no longer export its inflation ,then hyperiflation will come.

zbigi
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Re: EVERYTHING Too $$$ Now

Post by zbigi »

AxelHeyst wrote:
Wed May 03, 2023 7:43 pm
Ah, yes you are right, but I think there's some of both... e.g. the rush on Ceuta in 2021 was in part fuelled by the Spanish-Moroccan spat that led to the *Moroccan* border guards relaxing/looking the other way. They're not there to keep Spaniards out, they're there to keep Moroccans (who lack the proper visas, which are very difficult to get) in.
EU"s neighbors (Morocco, Turkey, maybe others as well) are paid by EU to keep their people (and trasient migrants as well) in their countries and not entering the EU. See for example:
https://neighbourhood-enlargement.ec.eu ... 3-03-02_en

Unfortunately, not everyone is open to taking EU's money. Specifically, Belarus has launched a (Moscow orchestrated) operation around two years ago, where they allow thousands of African and Asian migrants to fly in to Minsk airport, and don't interfere with them trying to illegally cross the Belarus-EU border. The goal is of course to try to spark another migration crisis in EU.

loutfard
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Re: EVERYTHING Too $$$ Now

Post by loutfard »

Reading through this discussion, I've bumped into two concepts occur a few times.

The first is keeping up with the Joneses: the silly competition to outspend one another on consumption.

The second is less visible. It's about widely socially accepted interactions/assumptions requiring certain spending. This could be how shabby the place you live in looks, or a family reunion taking place at a restaurant versus cooking together, or assuming everyone in a social group can get to this place that is not public transport accessible, or... Is there a more explicit, succinct name for this concept?

The concept - I'll call it common consumption denominator for now for lack of vocabulary - fascinates me. The differences in assumptions between my native country and my second home country are rather large in this regard.

One of the things that attract me to my objectively poorer second home country is its lower common consumption denominator. There's less of these implicit requirements. It's little things. I can buy individual screws at the diy shop. We set very moderate secret Santa budgets so my grandmother-in-law with her 400€/m pension can also participate as an equal. Our contractor drives a 1999 car. Etcetera.

OutOfTheBlue
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Re: EVERYTHING Too $$$ Now

Post by OutOfTheBlue »

Mature humans are bad for business and generally make "poor" consumers.

--

Shopping is more often a coping mechanism than frugality, and frugality does not equal sacrifice.

--

"By midlife no one needs to be reminded of economic reality. By midlife one has surely learned the truth of the cliché that money will not buy happiness[...]. But money, as with other projections of the first adulthood, may come to be seen as only pieces of paper and metal which are useful but not important in any ultimate sense"

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