Thursday, October 16, 2014

Burn Rate (Cost of Living)

This is something I've been thinking about for a while. During the "Great Depression" of the 1930s, if you lived on a farm out in the country (excepting the Dust Bowl), you probably wouldn't have noticed. You would have everything you need to get by right there: crops, animals, milk, firewood, etc. Many family farms didn't even have money, but they got by.

But now in an urban or suburban environment, think about how much money you need just to exist. When you get paid, before you've even gone out to spend anything, you have to account for things like the following:

Benefits (Health, Dental, Vision, Disability, etc)
Taxes (Federal, State, Social Security, Mediwhatever)
Retirement contribution
Car registration
Car payment
Car insurance
Fuel
Rent or mortgage (mortgage could include PMI)
Renters or homeowners insurance
Utilities
Cell phone bill
Cable or FIOS bill

And many more depending on your preferences and situation. Like Netflix, Hulu, Amazon Prime, subscriptions to magazines and so on.

This is before you've bought a single grocery. Before you've bought beer or gone out to eat.

It's amazing how much it costs simply to be alive in America (and probably other countries).


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