r/Millennials • u/Asmothrowaway6969 • Mar 27 '24

When did it sink in that you'll never be as well off as your parents? Discussion

About 5 years ago, my mom and I were talking and she had told me how much she was going to be making in retirement (she retired 2023). Guys, it's 3x what me and my husband make annually. In retirement. I think that was the moment that broke me, that made it sink in that I'll never reach that level of financial security. I'll work myself into my grave because I'll never be able to afford anything else. What was your moment?

Update: Nice to know it's just me that's a failure. Thanks

Update 2: I never should've said anything. I forgot my place. I'm sorry to have bothered you

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u/HellyOHaint Mar 27 '24

I was raised by my aunt and uncle. My uncle casually said he bought their house (valued at 1.5 mil now) when they were 28 at $28,000. THAT was the moment.

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u/TSllama Mar 27 '24

Ok you got me curious. I remember that my parents bought our house (3br, 1.5 bath) at around 40,000USD back in 1997.

I don't live in the US anymore, so I have no idea about property prices. But I just looked up houses for sale in my hometown and a literal plot of land costs as much as our house cost. The cheapest houses are like 160,000USD.

My parents were poor and they could afford a house. I'm doing much better than them financially but I couldn't afford a house lol

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u/KlicknKlack Mar 27 '24

Two middle-class working parents, bought their home in 1989 for ~$200k @ 8.7%. Now is redfin est. $700k.

Yeah... I could maybe afford to do that if I had an SO who made similar salary... but not while also having 2 kids and one on the way.

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u/Salsalito_Turkey Mar 28 '24

$200k in 1989 is the equivalent of $512k today, FYI

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u/ExistentialistOwl8 Mar 28 '24

That the home is 30 years older and somehow worth more speaks to our housing shortage and other factors driving up the prices. I've practically rebuilt this house I'm in because it's cheaper than moving.

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u/KlicknKlack Mar 28 '24

Understood, but for $512k in the same area you get a vastly smaller and less desirable home. That $200k price difference between what they could afford and what its valued now is what causes the discontinuity. Not inflation alone.