Curtis86

It's something that I have come to notice here in the U.S, but I think it's more a particular thing here in Los Angeles. I meet so many Americans here who will say that they don't make a lot of money, but then will say that their salary is upwards of $60K (even single people with no kids) ... I understand that the Americans expect a lot more when it comes to pay (which I believe is right) in comparison to back home in the UK. The other thing that baffles me is those who are making 60 , 70 a year but still have a 2nd job ! I'm not saying you shouldn't hustle and grind but I mean really ... I think the problem is that it almost seems that if you make 60K , you live a lifestyle of 80K. If you make 70, you live a lifestyle of 90, which is mostly accommodated through debt. I understand people fall into financial difficulty through many different problems, but how can you be single and not live comfortably on 60 a year ????

Sally Redux

How could it hurt you when it looks so good?

PS Where did you end up living?

Hotscot

Yeah but the house payment can take a big chunk, then utilities etc, the mileage you have to drive, and not leave much disposable.
However certainly here in SoCal I know a lot of people who would buy that expensive lease, SUV, jetski's etc before they'd contribute to their 401k's. They love their toys.

Curtis86

I live in Los Angeles like yourself

Sally Redux

Yes but you were weighing up different parts at one time - just wondered which you decided on.

Curtis86

Yes, I agree. Here in L.A, it's all about that, but you have to learn to be contented at some point. I know I won't be contented until I have my own business which I can live freely on.

Curtis86

lol, you mean as in where I decided to live. Yes, here in 'rainy' LA

Sally Redux

It makes a nice change

Duncan Roberts

I know this is not true if everyone but you have to keep in mind that people may be paying $500, $1000 or more a month in student loan payments. Add is potential high taxes for a single person with no kids or a mortgage, benefits and all that jazz and $60k starts to look more like $25k. That being said, people generally spend more than they make.

Hotscot

I have my own, successful, business but I won't be content until I'm back in Perthshire, divested of business, using my location as a base to explore Europe.

It's all relative I suppose.

dunroving

Based on the number of high-end cars I see on the road (in some of the roughest areas of Glasgow), I think there are plenty of Brits who live beyond their means, too.

If people didn't live beyond their means (consumerism), I think the developed economies would fall apart. It's a delicate balancing act, but if the population decided suddenly to tighten its collective belt and start saving, we'd probably all be screwed.

Beaverstate

I don't. Most of my friends do not, some do. Does that answer the question?

scrubbedexpat091

Some do, some don't. I am sure many in developed countries are living beyond their means, not much different here either, lots of Canadians with high incomes who seems to always be broke, but in my area its generally housing that is the issue, its just expensive, be it renting or buying. No way around the housing issue really.

Hotscot

Some live beyond their means and some don't.

Some even live excessively beyond their means and some don't.

Some of these people have low or no incomes at all.
Some of these people are millionaires.

Bluegrass Lass

But surely people here in Edinburgh are living beyond their means when they take out £600k mortgages? With average salaries here being nowhere near as high as the US, wouldn't that be considered living beyond ones means? On the Help to Buy scheme, you can take out up to a £600k with only a 5% down payment. How/why would you do that if your household income is only £70k (assuming a 2person household making 35/each)? Or maybe I just don't have a clear understanding of how mortgage payments are setup here.