The Harvard Joint Center for Housing Studies disclosed its most recent findings in 2024, indicating a significant trend in the realm of housing expenses. According to the data, 22.4 million renter households, constituting half of all renters across the country, allocated more than 30% of their income towards rent in 2022, marking a record high. But it’s not just rent. People are struggling to afford groceries and other necessities.
Don’t Miss:
A viral TikTok from Ryan Halbert sheds light on the difficulty of meeting basic living expenses faced by many Americans. The video not only highlights individual challenges but also sparks a broader discussion on economic pressures.
In his video, Halbert presents a detailed breakdown of monthly expenses, illustrating the financial challenges faced by many Americans. “If you’re making less than $25 an hour, you should be terrified,” he states, emphasizing the severity of the economic situation. According to Halbert, average monthly expenses total $3,285.37, which includes rent, groceries, utilities and other basic necessities.
He estimated rent at $1,659, groceries at $500, electric at $117 and water at $45. He estimated another $127 for cell phone service and $45 for Internet.
Halbert’s calculation suggests that to merely cover these costs, an individual would need to earn a minimum of $20.50 per hour in a 40-hour work week. However, when accounting for taxes, this hourly wage rises to $25. Keep in mind this number includes only the basic average expenses.
Halbert further explains the dire situation many are in, “You either have to kill yourself working way, way too many hours, or you’ve gotta figure out a way to make a ton of money. And also keep in mind these expenses are factoring in doing nothing. No free time, no going out to eat, no extra miles on the car, nothing.”
The influencer’s video does not just highlight the struggle to meet basic living expenses but also initiates a broader discussion on the economic pressures facing individuals. Commenters on the video express their personal experiences and challenges. “I make more money than I ever have in my life and I still can’t do more than barely scrape by,” one user shared, reflecting the sentiment of many others facing similar difficulties.
This discourse extends to the changing dynamics of household arrangements to cope with financial stress. “In 1975, only 11% of adults 18 to 34 lived with roommates,” reports Hannah Metzger for Colorado Newsline. By 2015, that number had jumped to 25.2%, highlighting a significant shift in living situations in response to economic pressures.
The reactions to Halbert’s video underline a critical concern: despite earning more than ever, many Americans find it increasingly difficult to afford basic living expenses, let alone save for the future. This situation is exacerbated by the current economic climate, characterized by layoffs and job insecurity, making the need for a living wage more pressing than ever.
The reality that $25 was scarcely sufficient for basic needs two years ago now appears even more “terrifying” against the backdrop of current circumstances. Recent data from Zillow indicates a rise in rent prices, with the average now reaching $2,000 per month as of February 2024. Essential expenses such as food, insurance,and electricity have also experienced significant hikes over the past two years, compounding the financial strain on households.
Given the struggle many Americans face, consulting a financial adviser can help. These professionals offer practical strategies to manage budgets effectively, identify areas where savings can be made and provide guidance on long-term financial planning. From creating personalized budgeting plans to exploring alternative housing options or investment opportunities, consulting with a financial adviser can empower individuals to navigate the challenging financial landscape with confidence and resilience.
Read Next:
*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article ‘If You’re Making Less Than $25 An Hour, You Should Be Terrified’ – Viral TikTok Shows How Much Is Needed Just To Cover Average Basic Living Expenses originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.