The American Dream Now Costs $4.4 Million…
According to Investopedia; the American Dream that people aspire to now costs over $4.4 Million Dollars. In this video, we take a look at the categories of their approximations and check whether or not they are valid. I also give my opinion on if they are justified/accurate. Enjoy 🙂
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Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
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⏱️ Timestamps:
0:00 – Start Here
0:28 – Defining the American Dream
1:08 – Retirement
3:23 – New Car
5:33 – Wedding
6:55 – Two Kids
8:43 – Home
10:18 – Pets
11:06 – Vacation
11:55 – Funeral
12:29 – What I'd Change
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The 95/5 rule
95% to needs. 5% to have fun
Yes sir~!
The housing cost for children I think IS warranted due to the need for a larger dwelling vs. being single or a couple living together. there is also additional maintenance costs associated to the wear and tear children inflict on your “housing”. Utility costs is also increased due to more people living in the dwelling and using the associated resources. I believe my personal housing cost would be significantly less ( probably around 30% ) if there were no children living with me. Thanks for the great content! keep it up!
Financial independence is the American Dream. I’ve been in my home for 16 years but at today’s rates and prices there is no way I could afford it…
5:55 Those numbers are wild. My wife and I went down to the courthouse and spent $75 on our wedding.
That is awesome! I’m a little jealous, we aren’t as high as the number from the video but we are getting close to it lol
I once attended a backyard wedding that was attended by a crowd in shorts and sandals, along with a few dogs. There was a keg of beer and a barbecue. Everybody had a lot of fun, and we thought it was a lot better than those fancy weddings.
@vinyl1Earthlink that sounds like an awesome wedding!
We spent 10k on our wedding and received 17k in gifts.
We’re about to do the same exact thing 🥂
I just want to say thank you so much for your content. Two years ago you released a video about various side-hustles that people can do. I decided to follow the advice and now I have a full-time hustle and successful small business. Thank you again from the bottom of my heart, you’ve truly changed my life.
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!*
I feel like the old American Dream was ‘Work hard, buy a house, retire happy.’ Now it’s ‘Work forever, rent forever, and hope AI doesn’t take your job.
Hope? It will happen whether you hope or not
Just catching up to how most the world operates is all.
Only to the more entitled Americans. For us Asian immigrant, the American dream has been as easy as ever. Out competing American students and workers is almost too easy for us since we actually study hard and work hard.
Honestly just move to japan after retiring that’s what I’ll do. Significantly cheaper and better lifestyle there no reason not to.
@@xiphoid2011I believe it largely stems from the lack of religion in yalls demographic. Less focus on “praying to pass an exam,” and more on actually doing something.
This is an excellent post. It made me look at my experience. 75 years old, married, retired, two grown children. Educating two young women through four year state university (all expenses) $240,000. Two weddings $160,000 (sorry, out of my control, social spouse). Always bought new high end cars but drove them for at least ten years. Owned only two homes sequentially most recent one bought for cash in 2001, current value $2,250,000, no mortgage. Those things seem to be the most consequential. Been fortunate to be alive during a period of wonderful marketable securities growth.
This is my goal in life, be comfortable in later life(seems like you are).
Are you my neighbor?
Interesting on the pets! We have 6 total pets and I can confidently say that the cost per pet varies wildly lol. We have 5 cats and 3 of them have been very cheap in terms of vet bills. They have only needed mostly regular checkups and shots. However, the other 2 (brothers) have all sorts of genetic issues and have cost thousands of dollars in emergency vet visits, medication and prescription food! We love our animals though and will spend (and can afford to spend) as much money as necessary to keep them happy, healthy and to live long lives!
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!*
One group of people who will notice you aren’t driving the newest model car… poor people.
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!*
It’s definitely become more challenging. But it’s not necessarily dead. It’s more about redefining what the American Dream means
It might not be about owning a big house in the suburbs anymore. It might be about having a fulfilling career, financial security, and a healthy work-life balance
Fulfilling career, financial security… that sounds more realistic, It’s about having enough savings to maintain your lifestyle in retirement. With rising healthcare costs and inflation, you need a substantial nest egg
It’s about long-term planning and disciplined saving. Starting early, investing wisely, and avoiding unnecessary debt
And being adaptable. The economy is constantly changing, and you need to be able to adjust your plans accordingly
It’s a good time to reassess your priorities and make sure your financial plan aligns with your values, And don’t hesitate to seek professional advice. A financial advisor can help you create a personalized plan and stay on track
I came to the US a dirt poor chinese student, so did my wife. We don’t understand why Americans are complaining about American Dream being hard. To us, and most Asian immigrants around me, the American Dream is almost TOO easy. It’s too easy to out compete American students in school, and also too easy to out compete American co-workers at work. It’s infinitely easier than the actully cutthroat and ultra competitive life in China and other Asian countries. Americans are what we call 身在福中不知福 （those born fortunate doesn’t appreciate their good fortunate).
This is the exact issue that I see on a daily basis. As an American disabled veteran, I have all the excuses to not work, but I choose to grind and often outwork most others in my age range.
Americans feel very entitled to comfort and security. The last few generations of Americans have had outrageously easy lives compared to most humans in history and while life is more difficult for young Americans now than it was for those generations, we still have it really easy. Most people just aren’t willing to work hard, aren’t critically thinking about the choices they make, and feel entitled to unrealistic lavish lifestyles
100% agree. I am from Uzbekistan and my husband is from Ukraine. We came here poor, our education was pure trash. But we worked hard, never got in any debt, other than mortgage. And I still a little jealous that I was not that fortunate to be born in US and had all these opportunities and don’t have to work that hard.
I wanted to add. It’s funny, but I’ve always had the cheapest and oldest car out of all my coworkers. I’m a software developer, and I bought my Ford Focus brand new 15 years ago, while everyone around me has changed cars 3-4 times.
@@yulduzrakhimova4376 yes it’s very common for Americans to needlessly “upgrade” vehicles and technology and all sorts of other products every few years. America’s economy would collapse if the population actually spent wisely
First-gen immigrant here, came to US for graduate school, got tuition and living spending covered by teaching assistantship, got married in town court with $50 fee, outperformed my American peers, and now earning 200k/yr. Haven’t had a free weekend for years
Same here as another first-gen, but now I kinda get eaten up by the guilt of not seeing other first gen kids I grew up with facing the completely other side of life. :/
Same here, but I got out of the rat race at 45. Getting ready to retire @55
The American Dream used to be ‘Work hard, buy a house, and enjoy retirement.’ Now it’s ‘Work forever, rent forever, and hope robots don’t take your job.
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, plan on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!!*
I think the funeral cost is way off. Sadly, I just had my father’s funeral. We totally spent 45k
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, plan on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!!*
No pets, used car, small wedding, 2+ kids, limit debt load on the house and free up all that capital for investments and a comfortable life with minimal physical objects to maintain, replace, move around etc.
$4.4 million for the American Dream? At this rate, most people are never going to retire comfortably, let alone afford a house and two kids. The way costs are rising, it feels like financial security is becoming a luxury.
That’s exactly how I felt two years ago. I was drowning in expenses, thinking I’d never be able to retire before 70. Then I started working with Rebecca Dolva Watson. She improved my financial plan, helped me clear unnecessary debts, and guided me to make better investments.
Fast forward, and I just crossed $350K in my retirement fund at 35. Never thought that was possible.
@@sheldongardner3150 Wait, $350K already? That’s impressive. I’ve been trying to figure out how to even start saving properly, but every time I do, life throws another expense my way. How did you even find Rebecca? I need that kind of turnaround.
I was skeptical at first, but honestly, she helped me see money in a way I never had before. It wasn’t about working harder, just being more strategic. If you’re serious, look her full name up and her consulting page should pop up. Best financial decision I ever made.
Just looked up Rebecca Dolva Watson and found her consulting page. I’ve got to say her credentials are truly impressive! I’ve scheduled a call to discuss further
Nah, you gotta keep that housing cost in there for kids. Even if the parents don’t buy a bigger house for each kid, they have an idea of how many kids they want and definitely buy as big a house as they’ll need, which is a lot bigger/expensive than they’d need for 2 people.
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, plan on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!!*
I can’t get over how literally raising a family and putting your kids through college is (allegedly) as expensive as driving a new car your whole life. Not to mention the hassle associated with breaking it in, meticulous dealership maintenance schedules and strict warranty rules to follow, all in the name of vanity. It’s so not worth it! These days there is hardly anything a brand new car will do that even a 10 year old one won’t. We have a 12 year old Toyota we own outright and that’s about the newest car we ever had – and I intend to keep it till it dies, which should easily give me another 10 years.. Already got a mortgage, now we can focus on actually enjoying life for what it is rather than stressing out about car payments. There are so many things more important in life than the new car smell.
As always, a great watch!
*Thanks for the feedback, We should work to lighten the lead of mankind, and prepare, plan on whatever come our way imagine if we did🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟾𝟷𝟸𝟾𝟶𝟷𝟺𝟸𝟹𝟽!!*
Stability is a result of our economy’s struggles with uncertainty, housing issues, foreclosures, global volatility, and the pandemic’s consequences. To restore stability and promote growth, all sectors must respond quickly to concerns about growing inflation, slow growth, and trade disruptions.
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
Having an investment advisor is currently the best way to approach the stock market. I was going alone, but it wasn’t working. I’ve been working with an advisor for a while now, and last year, I achieved over 85% capital growth minus dividends
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i’m in dire need of proper portfolio allocation
Finding financial advisors like “Lisa Grace Myer” who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.