I’ve compared income and expenses from different decades, the 1970’s mostly, in previous posts (see here and here). Most of the time I’m able to prove that expenses really have gone up exponentially while incomes have only grown modestly. According to this infographic I found, healthcare, education, and housing have increased the most. Though many households in the ’50s were single income families, today’s two-income families are struggling to pay the same bills that a one-income family used to pay.
The only complaint I have about this graphic is that the average salary seems a little low at $40,000 for two incomes (I think the average is more around mid-$50’s).
I can’t say I’ve found a solution to the problem of increasing costs with stagnating salaries except keep your bills as low as possible and spend less than you earn. This is just common sense, really. What are your thoughts? Do two-income families struggle more so than their one-income counterparts of 60-years ago?
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The median household income in America is in fact around $40,000. Granted that includes one-income families as well, but I don’t think that Census data actually breaks it down like that. It would be tough because then you would have to figure out how to define “two-income.” Would a single parent working two jobs count? Income from a child who works to support the household?
But at the end of the day, there are an awful lot of people who make a lot less than $40k per year. In 2010, my wife and I made a combined $28k.
@Edward Antrobus – I know there are people out there making less than $40K on two incomes, but I was surprised that was the average. My view point is probably a bit skewed because I live in Los Angeles and things are really expensive here making it difficult to live comfortably on $40K for just one person. But you pose some good questions, like how does the Census actually break down “income.” Again, it’s a bit disappointing that our income just doesn’t go as far as income did in the ’50’s – but then again maybe I’m just being nostalgic (not that I was alive then. 😉 )
Makes me glad we’ve only ever had one income. 🙂
@Michael – That’s one way to look at it. If you never were used to two incomes, then living on one is just fine. I’d love to be able to live off of one of our incomes and save the other. Maybe someday. 😉
@The Potato Head – That’s definitely true. Some of our monthly bills are really “wants” and not “needs.” However, there is so much more to “want” these days and ways to finance them. 😉
I’m amazed that only 31% of households now have more than one car. It seems like it should be much higher than that.