Outrageous Costs in the US: Are We Being Priced Out?

Living in the US has become increasingly expensive in recent years. The news is filled with stories of people struggling to make ends meet, even those in high-income households are feeling the pinch. The culprit behind this financial strain is the high inflation that has plagued the country. Essential items like housing, transportation, and groceries are more costly than ever, making it tough for many to afford the basics. Young families seem to bear the brunt of this financial burden, leading to the question – is the US becoming too expensive to live in?

Reflecting on the cost of living at the RB40 household, last year saw expenses hitting an all-time high. Despite this, the family feels financially secure with a higher net worth and substantial savings. The key to maintaining stability amidst rising costs has been in keeping fixed expenses under control. A closer look at the annual expenses over the past decade provides insight into how the RB40 family navigated through these financial challenges.

Annual Expenses

1. 2011: Childcare costs were a significant expense totaling around $12,000, which likely pales in comparison to current daycare prices.
2. 2012: Transitioning to a single-income household marked by frugality in the face of reduced earnings brought financial adjustments, such as bringing RB40Jr out of daycare.
3. 2013 to 2018: The shift from daycare to preschool along with public school enrollment resulted in decreased child-related expenses.
4. 2019: Relocating to a duplex where one unit is rented out led to a substantial decrease in housing expenses.
5. 2022: Increased spending on travel and parental support contributed to a surge in annual expenses, indicating a more established financial footing.

Categories

• Housing: Moving to a more affordable living situation like a duplex presented significant savings compared to living in a condo.
• Transportation: Obtaining a reliable vehicle with cash prior to a child’s birth proved valuable amidst rising car prices, although increased gasoline consumption led to a slight uptick in expenses.
• Groceries: While inflation impacted grocery costs, this category remained relatively small in the overall spending breakdown.
• Travel: Post-pandemic pent-up demand for travel saw a surge in expenses, prompting the family to budget for more domestic visits rather than international vacations.
• Kid+parent: With parental support set to decrease, expenses may shift towards increased extracurricular activities and upcoming education costs.

The rising cost of living is a prevalent concern in the US, especially for younger families. However, the key is to stay resilient, work diligently, and save prudently, even amidst financial challenges. While inflation may be a hurdle, maintaining a focus on core expenses and seeking financial stability is crucial. The RB40 family’s journey showcases how adapting to changing circumstances and making strategic financial decisions can lead to stability and growth. Remember, progress may be gradual, but with perseverance, financial security is achievable.