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US inflation means families are spending $709 more per month than two years ago

cnn.com

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Re: US inflation means families are spending $709 more per month than two years ago

#161

Post by asdgioanionio »

candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

Because their pay also increased. People can generally afford higher prices. Real wages have remained remarkably stable in the last few years.

The article itself says this. Somehow, it manages to spin it into bad news.

>Even though prices have soared, real earnings, which adjust for inflation, are stuck at late 2019 levels.

People can afford the same lifestyles they could a few years ago. The US weathered the outbreak of war in Europe and the worst pandemic in generations without serious economic hardship. Somehow, in CNN's view, this is a problem. Real wages haven't been stable. They haven't been resilient. No, they've been "stuck".

Re: US inflation means families are spending $709 more per month than two years ago

#162

Post by lotsofpulp »

scarface_74 wrote: post #159
lotsofpulp wrote: post #144

Earlier quoted context omitted.

Definitely pays off to invest more than the minimum required payments over 25 years. Not going to find better non callable leverage.

Why? I refinanced in 2021 and my mortgage rate is 1.97% fixed.

I meant invest into other equities, such as the public stock market, not invest into paying down the home principal.

Re: US inflation means families are spending $709 more per month than two years ago

#163

Post by koprulusector »

qbasic_forever wrote: post #16
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

There is a _LOT_ of debt being added, household debt is up to something like 17 trillion dollars from like under 10 trillion pre pandemic. IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. Used cars are incredibly expensive too. People are financing cars…

There are now officially 10 year car loans, 40 year mortgages.

Re: US inflation means families are spending $709 more per month than two years ago

#164

Post by gruez »

candiddevmike wrote: post #84
throwaway2203 wrote: post #5

Earlier quoted context omitted.

yup, with daycare costs we're technically top 10% and still kinda hand to mouth in a MCOL area.

I think the concept of cost of living areas is out the window. Mortgage and rent may be relatively COL dependent (kinda, but everyone is incentived to even it out nationwide), but for everything else I actually think the competition within big cities/"HCOL areas" drives down prices. In my "LCOL" flyover area I'm seeing $30+ pizza and $18 burgers, along with $10 beers at bars. It's insane.

> In my "LCOL" flyover area I'm seeing $30+ pizza and $18 burgers, along with $10 beers at bars. It's insane.

"$30+ pizza and $18 burgers" doesn't say much when you consider that there's a huge price/quality range between basic and premium offerings. For instance, a $18 waygu beef burger at a gastro pub doesn't seem very out of place at all, but a $18 mcdonalds burger would be outrageously expensive.

Re: US inflation means families are spending $709 more per month than two years ago

#165

Post by Auracle »

fullshark wrote: post #115
Waterluvian wrote: post #68

Earlier quoted context omitted.

I think a lot of people get into a mindset that a 25 year mortgage is meant to be paid off in 25 years, so that mindset guides their entire frame of reference for how large a lifestyle to adopt. I’m not saying to rush through a mortgage. Do whatever you want. But consider not getting into a situation where you’re somehow struggling even though you’re one of the lucky few who can afford to even own a home. When times…

Is it not meant to be paid off in 25 years?

shrug

It kind of depends on your mortgage rate. If your rate is low it technically makes more sense to invest your money, as that'll have a great return. If your mortgage rate is high, you might be better off paying extra each month against the principle as it'll drastically reduce how much you pay in interest over the course of the loan.

Re: US inflation means families are spending $709 more per month than two years ago

#166

Post by 01100011 »

scarface_74 wrote: post #150
01100011 wrote: post #82

Earlier quoted context omitted.

My paycheck is quite small due to the massive tax withholding I need to pay the taxes on my RSUs. I don't currently spend more than a fraction of my shares but I certainly use some of the proceeds to pay monthly expenses. I also sell company stock as soon as I get it and diversify(currently just buying T-Bills) because keeping all your eggs in one basket(i.e. keeping your wealth in the stock of the company that pays…

You don’t have the option for the company to just sell enough stock to pay the taxes on the RSUs once they vest?

No. Max withholding on RSUs is something like 22% so I have to make up the difference or owe tens of thousands at the end of the year.

Re: US inflation means families are spending $709 more per month than two years ago

#167

Post by hikingsimulator »

JumpCrisscross wrote: post #148
hikingsimulator wrote: post #113

Earlier quoted context omitted.

GDP isn't a good metric to compare household debt to. The US has an incredibly unequal society (see Gini index) and a lack of welfare compared to other Western countries. In aggregate, it means that debt is likely higher for households where that matters. The poor.

> GDP isn't a good metric to compare household debt to It's a fantastic metric to compare aggregate debt to. It isn't the end of the story, which is why I also cited debt payments to disposable income. American households are not, in aggregate, in a painful or even deteriorating position with respect to their debt. That doesn't mean many households, or even entire regions, e.g. West [1], aren't in pain. [1] https://u…

Disposable income as an aggregate doesn't show a income-level class (my point). Unfortunately having up to date information on economic status given the income level is hard to get.

Re: US inflation means families are spending $709 more per month than two years ago

#169

Post by lapcat »

KindAndFriendly wrote: post #49
gruez wrote: post #26

Earlier quoted context omitted.

>IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. I went on toyota.com and a base level corolla is only selling for $22,795. This includes a "Delivery, Processing & Handling" charge of $1,095. If for whatever reason you think that driving a compact car…

Currently trying to buy a Corolla Hybrid (base). The best out-the-door quote I got so far is $28.5k, the MSRP is $23k. So yes, you are looking at almost $30k for the most basic car.

> Currently trying to buy a Corolla Hybrid (base).

I wanted to buy a Corolla Hybrid, but the wait list was ridiculous, something like 9 months. Toyota has major supply chain issues.

I ended up getting a (non-hybrid) Honda Civic for under $30k. I still had to wait a month though.

Re: US inflation means families are spending $709 more per month than two years ago

#170

Post by pessimizer »

WTF is "typical" supposed to mean? It's in the source, too, which is a tweet. [edit: and apparently a personal email to CNN?]

  Teacherman @jboyd33488892
  Replying to @Markzandi

  Is that extra $700/month a mean or a median?
Also in the replies from @David_Charts:

  Hourly wage gains have exceeded inflation vs. pre-pandemic:

  +20.5% wages of prod & non-supv workers
  +17.4% inflation (CPI-All)
  +15.5% inflation (CPI-Core, ex food & energy)

  Yes, workers have more purchasing power now than in the vaunted 2019 economy.
https://fred.stlouisfed.org/graph/?graph_id=959796
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