My fiancé and I live in the Midwest, and our combined income is around 205-210k annually. Our kids are grown, so it’s just us now. The median household income in our area is about 50-60k. We have quite a bit going out each month towards unsecured debt, around $3500 for personal loans and credit cards. In the next three years, we’ll have an extra $2600 a month available after paying off some of this debt. Even though we manage the payments fine, we still feel broke. After all our bills, we have about $2300-$2500 left for gas, groceries, and other expenses. I work from home, and my fiancé works about 5 miles away, so gas isn’t much of a cost. I’m wondering if my perception of being broke is skewed. I see how much we bring in and how much is going out, yet I know many people struggle just to pay their bills. What do you think?
Honestly, I think your perception is skewed. $2300-$2500 left after fixed costs is a decent amount. If you’re feeling broke, maybe focus on paying off some extra on your debts.
To be real, I think your view of money might be a bit off. You mentioned feeling broke, but with your income, you should ideally be reducing debt and saving more. It sounds like a toxic relationship with finances.
You seem to be missing some cash flow details. After taxes, you should have about $12k, but you mentioned $3500 going out, leaving you with $2500. What happened to the other $6k?
Yes, your perception seems skewed. If something unexpected costs you $15k, you’d find a way to deal with it. Being broke would mean you have zero cash flow. You have money to work with.
Sounds like you might be house broke or car broke. You live in a nice place and drive decent cars, but the debt is consuming most of your income. Traditional broke means struggling just to pay rent or bills.
Honestly, you should be more aggressive about paying off that debt. It’s good to be disciplined about it and make sacrifices until it’s gone. You have the income to tackle it quickly if you focus.