You make about $83,000 a year and still feel tight on money? Personal finance expert Dave Ramsey says the issue is not your paycheck — it’s your spending habits.
In a March 31 Facebook post, Ramsey called it a “lie” that it’s not possible to live in the U.S. on an average income. He said many Americans burn through their paychecks without noticing where the money goes and blamed spending habits for most financial problems.
“You’ve probably heard it a hundred times: ‘You can’t make it on an average income anymore.'” Ramsey said. “I don’t buy it. After doing this for 30+ years, I can tell you that the issue probably isn’t your income. It’s what you’re doing with it.”
Don’t Miss:
- Small differences in withdrawal and tax strategy can significantly impact long-term retirement income — see where you stand today.
- Paying too much toward debt? Find out how much you could save with a quick, free check.
Ramsey cited U.S. government data in his post that shows the median household income in the country is $83,730, while average annual household spending is $78,535.
Rising inflation and slowing wage growth are squeezing American households harder than ever. US consumer sentiment fell to a new low in May amid rising gas prices due to the Middle East conflict, according to the University of Michigan Surveys of Consumers.
About 65% of middle-income Americans say their income is falling behind the cost of living, according to a survey by financial services company Primerica. The survey points to rising grocery prices, higher gas costs, and increasing utility bills as the main pressures squeezing household budgets.
Trending: Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account.
‘You Don’t Have To Live That Way’
Ramsey said not knowing where your money goes and constantly feeling tight has become “normal,” which he calls “broke.” Households earning an average salary can often turn things around just by tracking spending and making more intentional choices, he said.
“You don’t have to live that way,” Ramsey said on Facebook. “When you get intentional, when you get on a proven plan, when you say no to things that don’t matter so you can say yes to things that do, everything changes.”
Reality Check in Comments
Ramsey’s post sparked a split in the comments, with many agreeing with his take on budgeting, while others argued rising costs make it harder to get by on a middle-income income.
One commenter, 23, said he and his wife earn a total household income of about $80,000 with a $1,500 mortgage, adding they live comfortably.
See Also: Turn your trading skills into real income — without risking your own capital: Get funded by Apex Trader Funding and keep up to 90% of the profits.
Another said a two-bedroom apartment in South Florida is easily over $2,600 a month, and that by typical affordability standards, you’d need about $93,000 a year to comfortably afford it.
Others said it all comes down to where you live and the local cost of …
This post was originally published here
