I think where you live is a big factor. Some cities are really expensive and some are not. What I’ve noticed is the biggest costs today (and the costs that seemed to have increase the most through the years) are housing and vehicles. If you bought both of those years ago you are probably doing fine. If you had to buy a house and a vehicle today you will be in for a shock. They have gotten expensive.
I also think a lot of people spend too much. I grew up poor and we never had a credit card or bank account. If we didn’t have the cash we didn’t buy it. We never had AC or heating. We just dealt with the cold in the winter. We ate cheap. Took the bus and walked a lot when we didn’t have money for gas. We didn’t have any forms of entertainment like cable.
For people with kids I think the issue is time. Modern day setup seems to be for both parents to work full time. That means there is no time to cook, clean, daycare, etc. All of that will all need to be hired out. That’s where you are getting these astronomical numbers in my opinion. And what is the solution for that? I don’t know. I think it is not the optimal way to raise children but I also think many don’t have a choice but for both parents to have full time careers. In a lot of cities in order to afford a mortgage anywhere both parents would need to work in order to qualify even for the cheapest house in the worst part of town.
