Over the previous couple of years, the price of residing within the US has risen dramatically. The information tells me that folks can’t make ends meet. Even high-income households are having issues maintaining with the payments. This is because of excessive inflation over the previous couple of years. Housing, transportation, and groceries are dearer than ever. It’s robust to dwell in america nowadays. Specifically, younger households appear to wrestle extra. Is the US getting too costly to dwell in?
The price of residing on the RB40 family hit an all-time excessive final yr. Nevertheless, I really feel like we’re doing okay financially. Our web price is greater than ever and we saved loads of cash final yr. We’re extra established than many households and our mounted bills didn’t enhance that a lot. Our annual spending elevated, however that’s principally resulting from discretionary bills. Our core bills are underneath management.
Right this moment, I’ll assessment our bills intimately and see what occurred over the past 10 years.
Annual bills
Right here is the chart of our annual bills since 2012.
I stored an in depth spreadsheet of our bills since 2012 for running a blog functions. It’s a bit obsessive, however the knowledge was helpful on many events. I extremely suggest monitoring your bills if you wish to enhance your private funds. It is best to know the place your cash goes.
Total, our annual spending seems to be okay. It exhibits the totally different phases of life we went by.
2011 – I didn’t hold an in depth log in 2011, however we spent fairly a bit greater than in 2012. Childcare was a bit a part of our expense that yr. I believe we spent about $12,000 on childcare in 2011. I’m positive daycare prices much more than that now.
2012 – I retired from my engineering profession to turn into a SAHD/blogger. We misplaced about 2/3 of our earnings and I turned very frugal. I took RB40Jr out of daycare and that helped quite a bit. Â
2013 to 2018 –  RB40Jr began preschool. Childcare bills elevated a bit, nevertheless it was less expensive than daycare. As soon as he began public faculty, our child-related bills turned a lot smaller.
2019 – Our housing bills decreased tremendously once we moved to our duplex. We hire one unit out and we share many bills with our tenant. Additionally, I began sending cash to my guardian to assist out with their residing bills.
2022 – Our annual bills shot up. This was resulting from journey and sending extra cash to my guardian. My mother was within the hospital and I wished to assist out extra. RB40Jr additionally had extra extracurricular actions as he bought older.
Classes
Housing – Transferring to the duplex made an enormous distinction. Beforehand, we lived in a rental and the housing bills stored rising. The HOA charge and property tax elevated yearly. I additionally refinanced the duplex to decrease the cost a bit.
Transportation – I bought our 2010 Mazda5 for $18,000 money earlier than RB40Jr was born. It’s nonetheless going robust and I hope it’ll final till he graduates highschool. I really feel very fortunate to have a dependable car. New and used vehicles are a lot dearer now. In 2023, I began supply driving to make some further earnings. Transportation bills elevated a bit resulting from extra gasoline consumption.
Groceries – That is the place everybody feels the inflation. I complain about excessive costs each time I am going to the grocery retailer. Nevertheless, grocery is a small a part of our annual bills. Our grocery spending elevated, however it’s insignificant in comparison with the opposite classes. I most likely ought to cease complaining about how costly eggs and milk are.
Journey – Right here is the wrongdoer. Journey elevated our annual bills tremendously. Like most individuals, we have been caught at house in the course of the pandemic and we splurged on journey afterward. I believe we had our fill, although. Subsequent yr, we plan to go to buddies and households within the US. We’ll take a break from worldwide journey for a yr or two. Journey appears to value much more than the pre-pandemic days. Additionally, we need to journey extra comfortably now. Lately, we choose to remain at a enterprise lodge fairly than an inexpensive motel.
Child+guardian – My dad instructed me to cease sending cash so this class will lower subsequent yr. RB40Jr has extra actions now, although. This yr, he has a faculty journey to the Dominican Republic and a few extracurricular actions. Additionally, faculty is arising in 5 years. Larger training will enhance this class tremendously. I hope he can get a scholarship or two.
Wrap up
The US has seen large inflation over the previous couple of years. Younger households are struggling, however don’t lose hope. Preserve working arduous and lower your expenses. Ultimately, issues will enhance. Older households have the benefit as a result of we’re extra established. The RB40 family’s core bills are decrease than many youthful households. It wasn’t at all times this fashion, although. My first home had an 8% mortgage price in 2000. We struggled once we have been younger too. Preserve your heads up! Â
Have your family bills risen over the previous couple of years? Is it more durable than ever to dwell in america?
Picture credit score: Fabian Clean
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