Quote:
Originally Posted by peter12
The cost of housing is the number one culprit. All the Rich Dad blathering on in this thread is tiring as hell.
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Yep. It's funny seeing people blame things like TVs, cars, eating out, traveling, etc. The fact remains, people spend a lower proportion of their income on discretionary spending now than they they did in the '70s and '80s.
Based on US data, in 1973 the average family spent 39.6% of their income on housing, transportation, health care, and education; in 2016 they spent 52.8% of their income on those same things. Meanwhile spending on entertainment, alcohol, and tobacco was nearly 50% higher as a proportion of income in 1973 compared to today.