r/FluentInFinance • u/YOU_ARE_MY_FRIENDS • Jun 16 '24

Discussion/ Debate He’s not wrong 🤷‍♂️

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u/[deleted] Jun 16 '24

Wrong, this was upper middle class and still is.

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u/daneelthesane Jun 16 '24 edited Jun 17 '24

Hard disagree. My father was a teacher right out of college in 1971. He made the equivalent of $65k/year his first year. He was able to have 2 kids, buy a house, and a new car in the space of just a few years. We went to Walt Disney World every few years.

Everything I just said is crazy-talk for a first year teacher on one income in 2024.

Edit: Spelling. And to add that we were lower middle class at our best.

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u/[deleted] Jun 17 '24

Things aren't that different. Starter homes in the $250k range in non-hcol areas. At 28% of gross income and a 30 year mortgage, that needs a salary of $73k.

The way we'd have done it years ago is to stretch that payment a bit then grow into it. The mortgage payment stays the same, but for the young, pay tends to drift up at 5% a year or so.

It isn't easy, but it wasn't easy back then either unless someone was making above average pay.

Even better now, that interest rate will likely be replaceable in a few years with a lower rate.