Cost of the american dream, $130,000 annually.

I recently came across this post on the American Dream.  It is well written, and has some very good points. The message I get (and please add your feedback) is that this number for the annual salary required to "live out" the america dream is too high, unrealistic (7 out 8 american families do not earn this much) and breeds discontent, jealous, envy and resentment. There point was this number does more harm than anything to the 7/8 Americans who read it, and can't afford "the dream".

I would almost suggest this number $130,357.00 may even be too low. Remember, it's based on a family of 4, 2 adults and 2 children. And the numbers are averaged for all of America. This number is going to be very drastic depending on which part of the country you live in (or in my case, WHICH country you live in). I'm currently in Canada, but I like to take US and Canada figures about the same for simplicity. I'm just going to pick a few.

Housing: Based on a $275,000 mortgage (where can you get a house that low?! Average Calgary house price is $544,749). I had a home for valued around that number with annual taxes of $2600-$2900 and I was paying more, before home maintenance and improvement costs, then the estimated $17,062. At least $20,000 annually, which I was happy to pay. My mortgage interest rate was lower than what they used. A lot of the other categories would have to be reduced to afford to buy a single detached family home in (most of) Canada.

Automotive: $11,000. Not sure if this included gas, car insurance, parking and maintenance. I've never spent this much on my car, but if you like to buy newer (less than 8 years old) and don't know how to fix simple things yourself (change oil, battery, simple repairs) I can see this being reasonable.

Food: "April 2014 figure of $12,659 for a moderate-cost grocery plan for a family of four." This ends up being $243/week. Seems reasonable for me with a family that might include pre-teens or teens. Before babies, as a single, budget minded, healthy clean-eating girl, I spent $60/week.

Clothing: I originally thought the $2631 was high. But again, for a family of four. Including kids. Kids grow. A lot. And some special clothes may or may not be available in thrift stores. If your 4 year old doesn't fit last years winter jacket and it's -20 out, you buy a jacket. It averages to $200/month, or $55/person/month. I imagine the adults in this situation wouldn't be buying clothes as often as the kids, but a work outfit, could be $100+. With the income presented here, I assume a quality of clothes would be expected, and they do wear out. Still high, but could be quite possible while being minimal., and not over consuming. 

Utilities. Mine were/are higher. Regional differences would great here.

I thought restaurants was high as well, given the healthy food budget. But, given it's a family of 4, it becomes a bit more reasonable and probably includes coffee dates, work lunches, and special events like weddings or grandma's 80th birthday. It's $70/week. For me, my boyfriend and my daughter to eat at McDonald's, it's usually $20.

I found it so odd the only savings were for retirement and education. Both very good categories, but where is the emergency fund? Where is the savings plan to replace the car, or the fridge, or in case of a medical emergency? And where is the student loan repayment? ;) These values, combined with a realistic housing price make me feel the (completely random) number is too low. Or too low to accurately represent the America Dream of financial security. 

A few years ago, I worked at a job where I did earn almost $55,000 (and I hope to get back in that range). If I had a husband in the same range, we would be close to this mark. Which also makes me thing that daycare (which would be $1000/month/child) would require a much higher salary to live this "dream". Or the material objects suggested by this dream.

Back to the article. I don't understand where the resentment comes in? Perhaps it is the people who don't know what they are doing with their finances? The ones that complain about never being able to own a house, yet have a new car and smoke a couple packs a week? We all make financial choices. I love Starbucks, but had to learn that my grande a day during my undergrad, was better with once a week in grad school, and now once month. I think the American Dream (or my dream) would be to live somewhere safe, comfortable, and healthy. Be able to afford good food, and clean clothes for my kids. To have a good job, and to be able to save some of that money. To have the time to be active, be with my family, and to be a better me. Right now, I need my car. I want to own my home again. I want my kids to have a good life and learn the skills they need to get by. The cost of these things differs so dramatically depending on where you want or have to live, I don't think a "one size fits all" average income would ever work. And that's why I don't understand the negative social impacts of this number. It's no different than the average wedding costs $32,000. It doesn't buy happiness.

UPDATE: I found another great rebuttal: http://www.rethinkingthedream.com/1581/the-cost-of-the-american-dream-is-130000-per-year-or-is-it/

Another rebuttle (Again missing that house prices in Canada appear to be sooo much higher than the US. But, I think I'd rather pay more for my house, but not be afraid to go to the ER as I might leave with decades of debt): http://clubthrifty.com/usa-today-american-dream-now-costs-130k/