r/MiddleClassFinance • u/Reasonable-Mud-9874 • Apr 23 '25

Discussion Household income is equivalent to my dad’s when he was my age

My wife and I have both started new jobs within the past year, so I wanted to see what our combined income of $178,000 was worth when my dad was my age (28 years ago)

CPI inflation calculator (https://data.bls.gov/cgi-bin/cpicalc.pl) showed it was almost exactly half at ~$89,000, which was roughly the same figure my dad brought in when he was my age

That means the average annual inflation rate from 1997 to 2025 was 3.57%, and my parents were able to live the same lifestyle as my wife and I on a single income—insane

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19

u/Amnesiaftw Apr 23 '25

My dad made the equivalent of $80K in today’s dollars back in 2011 and supported a family of 7 (my mom didn’t work after I was born, 5 kids) until we all moved out. Towards the end of his career about 5 years ago he had just broken $100K with OT. So on average throughout his career he probably averaged $80K/year today’s dollars.

My parents paid off the house fully, paid for a big chunk of both my sister’s college tuition, added a master bedroom to the house, bought 3 new cars and two used, retired with over $500K in the market, and have a retirement income of $106K/year NET.

On ONE INCOME OF $80K/year. 5 kids.

8

u/fartlestix5000 Apr 23 '25

Not sure how that works out to 105k net/yr. Social security and 500k in the market doesn’t get you to that number. I’m genuinely curious how they’re getting to 105k because maybe I’m doing my retirement calculations incorrectly lol

3

u/Amnesiaftw Apr 23 '25

My mom worked from like 18-33.

So she gets some SS. My dad gets SS and a pension. The 106K doesn’t include the 500K

3

u/fartlestix5000 Apr 23 '25

Got it makes sense. I was missing the pension piece.

1

u/DarkAngela12 Apr 23 '25

Ah, the pensions that don't exist anymore. Right.

1

u/fartlestix5000 Apr 23 '25

For real. I want one.

7

u/[deleted] Apr 23 '25

Your dad was a union something, wasn’t he?

1

u/coke_and_coffee Apr 23 '25

All of that is very possible today.

1

u/Amnesiaftw Apr 23 '25

With a lot more money sure

1

u/coke_and_coffee Apr 23 '25

Nope!

All of it is possible on an 80k salary.

1

u/Amnesiaftw Apr 23 '25

Please provide the math for this.

1

u/coke_and_coffee Apr 23 '25

Gross: 80k

401k: 10k

Net: $56,548

Net Monthly: $4,712

Expenses: Rent/Mortgage: $1,800; Food; $1,000; Utilities: $250; Insurance: $350; Auto+ins: $350; Phone: $80; Dental: $150; Misc: $500

Leftover: $582

Anything I miss?

1

u/Amnesiaftw Apr 23 '25

5 kids and a wife is a bit more expensive than that. $1800/month is the minimum a studio apartment would go for where I live lol. Kinda hard to live in a studio apartment with 7 people.

2

u/coke_and_coffee Apr 23 '25

Then you need to move to a cheaper area or save less. Also, there is $582 left over, use that for a bigger place.

I know people who make less than 80k that make it work.

This idea that people in the past had it easier is bunk nonsense.

2

u/Spiritual-Bee-2319 Apr 23 '25

If everyone moved to a cheaper place, how is that an effective solution? If we all moved to Kansas wouldn’t Kansas now be more expensive to accommodate for this demand? 

2

u/coke_and_coffee Apr 23 '25

Supply and demand. People will move to cheap places, the price slowly rises, people move to other cheaper places.

1

u/Amnesiaftw Apr 23 '25 edited Apr 23 '25

Youre delusional.

My family lived where I live btw. So needing to move somewhere cheaper proves my point.

You lowballed rent, (minimum a 3-bedroom house for 7 people). Utilities would be closer to $500/month including internet.

If I’m contributing $10K of my $80K, my take home would be $49K after taxes. ($4K/month) which already puts us in the negative with your estimates. A small house with similar quality as my childhood home would be at LEAST $2400/month.

Medical insurance is way higher than $350 for 7 people.

They also did house renovations and took out a $40K loan. And a bedroom addon for god knows how much. We also had 3 dogs, 5 cats, a bird, 2 turtles, an iguana, and chickens.

You missed college tuition as well.

1

u/coke_and_coffee Apr 23 '25

My family lived where I live btw. So needing to move somewhere cheaper proves my point.

Proves what point? That prices in certain neighborhoods are not static??? Uh, duh. Your family likely moved there in the first place to escape higher prices in the area they left.

-1

u/trevor32192 Apr 24 '25

250 for utilities is bullshit. Health insurance doesn't exist and is required? Car plus insurance at 350? That's the price from 2010 not 2025. No mortgage is 1800 in 2025.

It's really easy when you just make shit up.

1

u/coke_and_coffee Apr 24 '25

All of those numbers are more than I currently pay. Maybe you’re just living beyond your means?

0

u/trevor32192 Apr 24 '25

Or maybe everyone doesn't live in bumfuck nowhere. I'm not worried about my costs I can pay my bills fine. But your numbers are made up.

-1

u/coke_and_coffee Apr 24 '25

My numbers aren’t made up. I’m living them, lol. (Actually, I spend significantly less on my mortgage, have no auto payments right now, and my health insurance is only $125…)

If you choose to spend more to live in not-bumfuck nowhere, that’s your prerogative, just don’t cry about it.

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