Lately I have been thinking about how sad the debt to income ration for most people in the US or at least where I live is very unbalanced. It is sad that people can barely make it on wages that ate one time were great. Yes things cost less then too but the debt to income ratio changed so much that wages did not increase accordingly based on the cost of living.
Currently where I live in Colorado the average hourly wage
is under $10 per hour. The average rent is around $850.00 per month for a
fairly small home. Renter pays pretty much all utilities. So let's just say a
person is lucky enough to make $10 per hour which is a gross of $1600 per month
if they get 40 hours which many employers do not offer. Uncle Sam takes on
average at least $300 from that, possibly more. So that leaves a family roughly
$1300 per month. From the $1300 per month comes the $850 in rent leaving them
with $450 to live on. Out of that $450 they have to pay utilities, gas for
vehicles, food and other incidentals and necessities such as clothes etc. That
is all if a family rents. If they buy a home it is sometimes less pr month but
still that $1300 income just does not go far at all. It is no wonder people
struggle to survive.
As I think back to when I first got married and my then
husband earned $5.00 per hour. That was good money for us. Later he really hit
it big and got a job where he made $8.00 per hour. When I started working at a
hotel in 1985 I was feeling great to make $4.00 per hour and then later went to
work at a greenhouse making $5.00 per hour. At $5.00 per hour our gross income
was $800.00 per month when only one of us worked. We took home around $600.00
per month and did just fine. Later when my ex made $8 per hour we were rolling
in the dough when he brought home around $1000 per month. We were able to pay
rent, buy food, pay for a vehicle, auto insurance, gas and even buy a boat and vacation
at Lake Powell a few times each summer.
It is sad that things have changed so much that someone
making $10 per hour is actually in poverty level while back in the 80’s we felt
rich making $8 per hour. Times sure have not changed for the better and again I
find it sad that people struggle to survive.
It seems that everything goes up with inflation - except people's salaries and work hours. You are right that more people have to struggle to get by today. What's really sad is how many people try to deny that fact and get down on people who rely on government assistance to stretch their salaries. Most folks would just rather earn a living wage, but that isn't always an option.
ReplyDeleteIt is so sad that people have to rely on the government for help in this world today. Years ago it wasn't that way, we could make it on our own. It used to be a disgrace to be on food stamps but now for so many it is a necessity. It is not only the lazy that get them but the working class too.If a couple has kids and both work they still need them unless they are lucky enough to make a big wage.
ReplyDeleteBut then when you go to college so you can earn a good wage you are still struggling due to the huge student loans you repay. It is such a lose lose situation anymore.
Where I live there isn't really a living wage. Most places only pay 8 per hour and you can't live on that.