This is key. I'd add that one needs to be flexible about what they do for a living and where they live but this doesn't compute with some people. A friend's son thinks he's going to be an actor and his parents feed that. OK, he might strike it big but I might also win the lottery but am not counting on it. I've seen the same with parents thinking their kid will become a pro athlete and the family revolves around that way more than it should. Only problem is, those kids are stars in their parents' eyes only. Reality deficit disorder should be added to DSM-IV.
You just described me and my own family situation almost exactly. Even the savings rate. I'm not wealthy, just a middle class engineer. It's called "only buy things you can afford" aka "live within your means."
I think it's become a lot easier for people to spend money they don't have which has helped blur the distinction between "needs" and "wants."
Wow, all these bullcrap responses and no one realizes the importance of worker vs executive pay, and the change to "Corporate America." In 1965, the average CEO was paid 24 times the average worker. In 2005, CEO pay was 262 times the average worker pay. Basically, the executives are taking all the money. Our govt has become a Corporate Fascism. They keep raising our taxes and doling out to the corporations and their buddies, who in turn give money back to them. The rest of us are just pawns.
The bullcrap is complaining about how much someone with more education, experience, motivation and commitment than the average worker makes. CEOs don't work 40 hour weeks. They also generally have more education. The average worker includes 30 year olds while the average CEO is older. The average worker can't go to jail when the financial statement aren't right (not right doesn't mean fraudulent). The average worker has 1/10000th the liability a CEO has. The average worker would not take the risk of a $1 salary and base the rest on performance. The average worker does not get his personal email and number plastered on the internet when things go wrong. I'm not saying come CEOs aren't overpaid, but to compare them to the average worker from 30 years ago and then today is not apple to apples. The job of a CEO has changed so much while the average worker is just that, average.
Traditional college education is turning into a big scam. It is way too expensive for the value you receive. People get into debt up to their eye balls or their parents give a big chunk of their retirement money in return for ever lower paying jobs after graduation. When everyone becomes a college graduate, it is not rare or as valuable anymore. There is nothing in a regular bachelors degree that could not be learned from a good low cost on-line college. You could take your lessons from the best professors instead of some teaching assistant. Some foundation should step in and offer free on-line accredited college degrees. This way people could graduate without debt and work their way up.
You honestly believe food prices went up only 3% from 2007 to 2008? I keep track of this and it's 10-15% a year depending on the item. Some items undergo regular 20% increases for the past 5 years. Here is something I found quick: http://www.thepeoplehistory.com/70sfood.html Now go look up these prices at your local supermarket. And consider how much the food quality has also deteriorated.
INFLATION IS A THIEF, MY FRIEND. Blame the FED. Four years @ a private institution (like the ones many of us ETers matriculated at) cost upward of $200,000!! Think about it. Good post. Thanks.