How do they do it?

Today was a real beautiful day. So after visiting some of my family, my wife and I decided to go look at homes. Now I don’t know about you, but we like to drive around and look at homes in the nicer neighborhoods and dream about “one day”.

 

There is one neighborhood in particular that we like that is about a 15 minute drive from our house. These homes are in the 700K – 2 million range and they are niiiiiiiiiiiiiice. As we drove around, I noticed the kids playing and the nice cars. I also saw some of the parents. What struck me was, “hey, they’re around our age”, mid to late 30s. So now I’m wondering, what is it that they do for a living to be able to afford a house like that?

 

This area isn’t exactly known for a lot of high salaries, and since these were younger people, they couldn’t be retiring here could they? Now don’t get me wrong, there are a lot of doctors, lawyers, and other professionals in this region. But there are also a lot of high priced neighborhoods. The average wage in this region is around $30,000 while the average home is around $300,000. It kind of makes me wonder if they’re living way beyond their means. I know how much income our household brings in, and we’re just comfortable. Actually, if we had no credit card debt, we’d be sitting pretty. But I can’t fathom how someone can afford a $4000+ mortgage, credit card bills, car payments, and child raising.

 

I know most people in general aren’t well off financially, but maybe I’m missing something. Maybe all these people have their finances in order. Or maybe grandpa and grandma are paying for their grand-kids to go to private school and chipping in on living expenses. From what I hear from co-workers about their finances, I’m betting on the latter in a lot of cases.

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One Response to How do they do it?

  1. […] talked about people living beyond their means in an earlier post. It seems that this sub prime lending issue is a lot bigger than I thought. To […]

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