Has the “American dream” changed? And does this fit YOUR definition of what it is? An annual study by Investopedia found you now need to earn more than $4.4 MILLION in your life to achieve the “American dream.” If you work from 18 to 65, that’s an AVERAGE of around $100,000 a year, which is way more than most people make. But they say it’s achievable for couples with two incomes.
It all depends on what your definition of the American dream is though. And the one they used isn’t the classic definition. It used to mean that if you worked hard enough, anyone could make it . . . buy a house . . . and leave their kids better off. Investopedia’s definition is more specific. Here are the eight things they factored in, and how they got to $4.4 million . . .
1. Retirement: $1.6 million saved to retire comfortably.
2. Owning a home: $930,000 over the course of your life.
3. Raising two kids: $832,000.
4. Owning new cars: $811,000. Not just any car, but NEW ones.
5. Annual vacations: $179,000. But not everyone vacations every year.
6. A big wedding: $44,000.
7. Having pets: $37,000.
8. Paying for your own funeral: $8,500. (I guess that’s part of the “dream”?)
If that all sounds excessive, their study last year was more modest and only looked at what you’d need to live COMFORTABLY. That number was still pretty high though . . . $3.4 million.
