Living the Current “American Dream” is a NIGHTMARE
I have two friends - Bob and Jane. They met soon after college, married, settled in his home town, and started a family. Bob had a good job in the town’s finance department. Jane ran a small catering business with a nice local client base. Bob saw his friends from college climb the corporate ladder, move out of town, purchase big McMansions in the outlying country. Bob wanted more out of life. Jane was happy where she was. Bob wanted a divorce. Jane decided to keep peace in the family, she would help Bob get what he wanted. Jane gave up her catering business and went to work full time for a large insurance company Now she works over 60 hours a week just to make sure she can keep her job. Bob started up a company but it didn’t work out as well as he thought it would so he took an entry level job in a company where he has to commute 100 miles to work and back each day. They did all this so they could afford their own McMansion way out in the country. Lets look at the “quality” of their life now:
1. To heat their McMansion in the winter costs over $1500 per month.
2. Their electric bills are twice what it costs most families - why - Bob needs to keep that old fridge in the garage for when his “friends” come over for a beer.
3. To keep up appearances for their “lifestyle” they have amassed over $20,000 in credit card debt.
4. They both pay over $500 per month payments for gas guzzling cars where they owe more on the car then they are worth. These two cars use over $300 each in gas per month since they have to drive so far for everything now.
5. Their kids go to a high school where over 50% of the kids have drug and alcohol problems. Nice schwanky neighborhood that is.
Their kids are growing up and will be heading off to college soon. They have not saved a penny for the kids college education and their retirement accounts are pretty lean.
The odd thing is they don’t want to replace all the light bulbs in their house to low wattage bulbs because the cost of the bulbs are too high.
We need to create a “new” American Dream:
1. Live in a house you can pay off in at least 15 years. Public schools are what you make them, ANYWHERE.
2. Drive a car that you can afford to drive without payments. Live close to the services you use routinely so you can walk or ride your bike.
3. Reduce your monthly expenses to where it’s a pay as you go lifestyle instead of creating long term recurring expenses (like for utilities).
4. Save at least 20% of what you make for a “rainy” day. This way you don’t have to take or stay in a job you can’t stand.
Here is a diagram of the new American dream.
Tags: American Dream, Decision Making