Okay, @CNBC, you have no one fact checking on your editorial staff so I'm going to do you a solid and edit for you.
Let's start with the income... $100,000 - That's an hourly income of $50/hr, 40 hours per week, for 50 weeks of the year.
Let's start with the income... $100,000 - That's an hourly income of $50/hr, 40 hours per week, for 50 weeks of the year.
You can earn $50/hr, @cnbc, but you need ten years experience. A 25yo will not have that. So they'll get minimum wage.
We'll pretend this person is in Seattle where minimum wage is $15/hr.
They earn $30,000 per year.
We'll pretend this person is in Seattle where minimum wage is $15/hr.
They earn $30,000 per year.
This is quite a problem, because there isn't an apartment for rent for $825/month in Seattle. There is one in Madison, WI. The commute is going to be costly, but it'll be worth it.Right, @cnbc?
Next let's look at your monthly spending... remember, your 25yo is getting $30k/yr, that's $2500 a month, and you're already $275 over budget. You will be cleaning your own house, @cnbc.
Internet for $20? No, the cheapest internet is $29.95. With tax that's $30, and I hope you don't like streaming services, @cnbc.
Your cellphone service isn't terrible, good job @cnbc intern who has the cheapest plan available! You knew what you were doing.
Let's look at the rest of your spending.
Let's look at the rest of your spending.
Oh, $250 for dining out and $400 for groceries. I hate to break it to you, but you are not going to spend 10% of your income (your earn $2500/month) on eating out, @CNBC. That's irresponsible. You get $50.
Quick Cheat Sheet -
Health Insurance - $270 (sure)
Groceries - $400 ($600)
Dining Out - $250 ($50)
Utilities - $195 ($200: power, gas, water, trash)
Transportation - $130 (is that car payment or fuel?)
Cell phone - $40
House cleaner – $30
Rent - $825
= $2145.... @CNBC
Health Insurance - $270 (sure)
Groceries - $400 ($600)
Dining Out - $250 ($50)
Utilities - $195 ($200: power, gas, water, trash)
Transportation - $130 (is that car payment or fuel?)
Cell phone - $40
House cleaner – $30
Rent - $825
= $2145.... @CNBC
The transportation payment... if this is a car payment, you forgot the fuel, if this is transport without a car you're forgetting that a majority of Americans don't live in a city with mass transit.
@CNBC
@CNBC
The other thing missing here is the student loans and consumer debt. There is no normal 25yo that doesn't have some sort of debt. The average for under 35 is $67,400.
time.com/money/5233033/…
@CNBC
time.com/money/5233033/…
@CNBC
Let's pretend the 25yo is paying the debt back in a set of $250/month. That brings their total expenses to $2395 with our new budget. That leaves the 25yo with a whooping $105 for savings and emergencies.
@cnbc, they better not hope they need medication or get a ticket.
@cnbc, they better not hope they need medication or get a ticket.
Oh, wait! We forgot car insurance (because most Americans don't have access to mass transit). That's $62/month on the low end.
Oh, dear, @cnbc, our 25yo only has $43 left at the end of the month for savings.
I hope they don't have to buy a work lunch this month.
Oh, dear, @cnbc, our 25yo only has $43 left at the end of the month for savings.
I hope they don't have to buy a work lunch this month.
Think of all the other bills you missed, @cnbc... some 25yo's have kids, some are still in school. There's medical bills that aren't accounted for in this budget. And it will take 697 years of saving $43/month to save a yearly income for emergencies. Ouch.
This is the problem - @CNBC and @CNBCMakeIt - with using a random anomaly to prove a point. The average 25yo cannot and will not make $100k a year, and they won't luck into good health and a perfect financial situation.
