The 2023 Silent Depression
While the way of living in 2023 is vastly better than in 1930, when it comes to finances, it is harder to make ends meet in 2023 than in 1930.
Before I write more, I want to make this clear. By no means am I saying we should go back to 1930 living, all I am saying is in terms of finances for the average person, it is statistically tougher to live in 2023 than it did in 1930, during The Great Depression. The average person is having to pay MORE of their income to living expenses than they did during The Great Depression.
Did you know…
The average salary in 1930 was $1,200 a year. Not great, but remember, prices of goods & services were vastly different too.
The average salary in 2023 is $56,000 (some articles will say closer to $50,000 & others will say closer to $60,000).
In 1930 the average:
Home was $3,900
Car was $600
Rent was $216/year
In 2023 the average
Home is $436,000
Car is $48,000
Rent is $24,000/year
Just looking at the numbers above is not enough to compare. Of course technology, safety, inflation & much more demands higher prices of goods/services in 2023. But here is the kicker, when we break it down as it relates to % of income, this is where it gets wild.
In 1930 ($1,200 a year average income),
The $3,900 house cost 3x the average income
The $600 car cost 46% of the average income
The $216/year rent was 16% of the average income
In 2023 ($56,000 a year average income)
The $436,000 house is 8x the average income
The $48,000 car is 85% of the average income
The $24,000 rent is 42% of the average income
Real quick, I just launched a BRAND NEW podcast called The Decade Investor Podcast where I talk every week on all things money! I just released my second episode, which covers a wealth letter I wrote that you need to hear!
You can listen to it on any podcast playing app here: https://thedecadeinvestorpodcast.buzzsprout.com/share
So what are the takeaways???
This is not sustainable. Inflation has been insane the last couple years & prices of goods & services do not seem like they will come down. As it relates to income, it is getting more & more important to find ways to increase your income.
Buying assets is a necessity. To me, buying assets is always a good idea but especially now.
Financial literacy is more important than ever. My mission has always been to spread the good word about money & my job gets more & more important every single day.
I don’t write this post to scare you, I write it to keep you informed with what is going on. Use this to make good decisions with your money & stay informed!
I want to help you too. I will be able to help you… soon. Stay tuned, I have something coming in the beginning of 2024 that will revolutionize the game for Decade Investors.
(x)Tweet of the Week:
Here is a video breaking down this newsletter post & where I got the inspiration!
The 2023 Silent Depression.
Something has to give. This is not sustainable.
— Decade Investor💸 (@DecadeInvestor)
Nov 10, 2023
Thank you so much for reading & I will see you next week! Until then, keep buying assets & stacking those dividends. 🙂
- Decade Investor