No it absolutely is not achievable for a large portion of the middle class. That’s a ridiculous thing to say. Most people don’t even know how to invest their money early in life and are unlikely to be offered a 401(k) when they’re young either. $300 a month at age 20? How many 20-year-olds could afford to invest $300 a month even if they’re being paid a middle class wage?
Do you know how expensive rent and food are now? This sounds amazingly tone deaf.
Again- how many 20-year-olds have $300 a month to invest? How many middle class people in 2023 have 10% of their income to spare? It may be a good target. That doesn’t make it achievable when 62% of Americans are living paycheck-to-paycheck. They don’t have 10%. They don’t have 1%.
As far as any spare income I have? It goes to paying down medical debt.
Yeah it’s unlikely. Saving 1-10% assumes you’re making a livable amount of money with a bit extra, versus living paycheck to paycheck even after cutting all but the most vital expenses. (Ed- and not in significant debt)
Things were a lot different when I was in my 20s compared to now. A single job at an hourly wage used to actually be almost doable.
How many 20-year-olds could afford to invest $300 a month even if they’re being paid a middle class wage?
If you’re making median income outside places like LA/NYC/SF and don’t have children, it should be pretty affordable.
The place I work at doesn’t offer a 401k either (technically I’m self-employed/contract worker, so I do offer myself a 401k), but even if it doesn’t and you’re not self-employed, IRAs have a $6500/year limit and that’s something you just open yourself. And you can just open a brokerage account if you want more. Unfortunately, most people don’t know these kinds of things, especially not at 20yo. There’s definitely a education gap, which is a serious problem. And few people in their early 20s make the median wage and even if they are making that much, many are still buying lots of basic durable goods like furniture and kitchenware. So using 20 as a starting point is probably a little too optimistic…
If you’re making median income outside places like LA/NYC/SF and don’t have children, it should be pretty affordable.
Did you ignore the fact that a large majority of Americans don’t have any money to invest because they’re living paycheck-to-paycheck? Do you think they all live in those sorts of cities? Wages have been stagnant for decades now. Housing prices, rent and food prices are through the roof everywhere in the country, as is the (always) variable-rate APR on things like car loans. American household debt is $16.9 trillion.
Most people simply do not have money to save or invest. They’re not getting paid enough, essentials are too expensive, and they’re drowning in debt.
No it absolutely is not achievable for a large portion of the middle class. That’s a ridiculous thing to say. Most people don’t even know how to invest their money early in life and are unlikely to be offered a 401(k) when they’re young either. $300 a month at age 20? How many 20-year-olds could afford to invest $300 a month even if they’re being paid a middle class wage?
Do you know how expensive rent and food are now? This sounds amazingly tone deaf.
https://www.cnbc.com/2023/01/02/middle-class-income-in-major-us-cities.html maybe you’re defining the middle class differently than I am. $300/month is 10% of the low end of that income level. 10% of total income is a generally considered a good target for retirement savings.
Again- how many 20-year-olds have $300 a month to invest? How many middle class people in 2023 have 10% of their income to spare? It may be a good target. That doesn’t make it achievable when 62% of Americans are living paycheck-to-paycheck. They don’t have 10%. They don’t have 1%.
As far as any spare income I have? It goes to paying down medical debt.
Yeah it’s unlikely. Saving 1-10% assumes you’re making a livable amount of money with a bit extra, versus living paycheck to paycheck even after cutting all but the most vital expenses. (Ed- and not in significant debt)
Things were a lot different when I was in my 20s compared to now. A single job at an hourly wage used to actually be almost doable.
If you’re making median income outside places like LA/NYC/SF and don’t have children, it should be pretty affordable.
The place I work at doesn’t offer a 401k either (technically I’m self-employed/contract worker, so I do offer myself a 401k), but even if it doesn’t and you’re not self-employed, IRAs have a $6500/year limit and that’s something you just open yourself. And you can just open a brokerage account if you want more. Unfortunately, most people don’t know these kinds of things, especially not at 20yo. There’s definitely a education gap, which is a serious problem. And few people in their early 20s make the median wage and even if they are making that much, many are still buying lots of basic durable goods like furniture and kitchenware. So using 20 as a starting point is probably a little too optimistic…
Did you ignore the fact that a large majority of Americans don’t have any money to invest because they’re living paycheck-to-paycheck? Do you think they all live in those sorts of cities? Wages have been stagnant for decades now. Housing prices, rent and food prices are through the roof everywhere in the country, as is the (always) variable-rate APR on things like car loans. American household debt is $16.9 trillion.
Most people simply do not have money to save or invest. They’re not getting paid enough, essentials are too expensive, and they’re drowning in debt.
I also fully admit I’m at the top end of the middle class and don’t know the struggles of low income earners.