I live in the past about the value of a dollar

[NW-Bound]

My wife and I continue to live a very frugal life--eating out only 1x per week. Living conservatively allows us to be perpetual world travelers in our retirement.

You are eating "out" once per week? We eat once per week, at home, so that we can have money to travel.

 

[donheff]

The official cumulative inflation from 1976 till now, a period of 39 years, is 320%. This means $1 back then is worth $4.2 now. So, the $15/hr job now is equivalent to $3.57/hr back then.

Does that seem about right? I cannot remember what minimum wage was back then, but it must be lower than $3.57.

PS. I do remember an engineering graduate making $17-19K for the first job out of school. That is equivalent to $71-80K now. That seems roughly right.

The Bureau of Labor Statistics has a wage inflation calculator that says wages are up over 400% since 1976, 613% since my date of 1970. Minimum wage was $1.60 in 1970 so $9.80. Against that yard stick we are still pretty far behind. In 1970, $10K was a good starting wage (equivalent to ~$60K today).

As a sub teacher in Chicago in 1973 (536%) I made $40/day which would be $10K ($53K today) on a full time, full year basis. About $8K based on a teacher's schedule or $42.4K today.

 

[aaronc879]

If it takes $150K to be middle income I might as well start laying in the supplies of cat food right now....

It's all relative. High income people in HCOL areas may think $150K is middle income. I'm low income in LCOL area so I think middle income is $25-75K/yr. I've never even earned $50K in a year and I never will so $150K is completely out there to me.

 

[NW-Bound]

Where I am, a salary of $150K is quite good, certainly not middle. However, that's for a single person. If you talk about household income, it's easy for a working couple to surpass it, if at least one of them has a professional job.

 

[Fermion]

You are eating "out" once per week? We eat once per week, at home, so that we can have money to travel.

We were doing that (eating out a lot) until we discovered this year we need to cut back on salt. I estimate we were consuming about 6000mg a day each from eating out.

 

[audreyh1]

It was 1976 when I was getting 2.10. Like I said it was the youth minimum wage I think the regular minimum wage was 2.40, but I'm not positive

The federal minimum wage in 1976 was $2.30, in 1975 it was $2.10.

 

[NW-Bound]

The federal minimum wage in 1976 was $2.30, in 1975 it was $2.10.

You are nitpicking. Inflation was rampant then, who could have remembered exactly?

On 1/1/1975, it was indeed $2.10. On 1/1/1980, it was up to $3.10, according to the link provided by Independent. That's an increase of almost 50% in 5 years. Exciting time!

I probably remember the wrong date for starting salary of engineer, as I was still in school. The $17K-19K I mentioned as starting salary for a BSEE was probably later in 78 or 79, and not 76. When I got my graduate degree and started working in 1980, SS record showed that I made $26K that year.

 

[jazz4cash]

You are nitpicking. Inflation was rampant then, who could have remembered exactly?

On 1/1/1975, it was indeed $2.10. On 1/1/1980, it was up to $3.10, according to the link provided by Independent. That's an increase of almost 50% in 5 years. Exciting time!

I probably remember the wrong date for starting salary of engineer, as I was still in school. The $17K-19K I mentioned as starting salary for a BSEE was probably later in 78 or 79, and not 76.

I was still in school then. When I got my graduate degree and started working in 1980, SS record showed that I made $26K that year.

I graduated '79 w BSME and 17-19k is in the ballpark. I remember dreaming of earning 12k/ yr when I was working my way through school.


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[NW-Bound]

I recall that as I was about to start work, I thought that I would reward myself with a BMW 730. Of course no way I could have afforded it with what I first made.

Then, came the cost of a home (14% mortgage rate) and raising a family, and to this point I never own a luxury car. Now, I look at fancy cars with indifferent eyes.

 

[photoguy]

It's all relative. High income people in HCOL areas may think $150K is middle income.

I think it's a bit skewed. In a HCOL area one might need a few hundred k income to afford a "middle" of the road house (or even a starter home) so they don't feel well off even if by national standards they are in the top income percentiles. Some services (like daycare) also scale with housing costs and also may put the pinch on an otherwise high income.

On the other hand, most material goods aren't any more expensive so people can easily afford the latest gadgets, cars, etc.

 

[Bamaman]

You are eating "out" once per week? We eat once per week, at home, so that we can have money to travel.

I didn't say where we eat out most weeks--Krystal. My wife worked at the Krystal long before we met, and it's still her favorite place to eat. Times were tough for a young, single mother of 3 young babies. She still loves the little burgers.

Sometimes we'll get the $4.99 senior special at Captain D's on Wednesdays or Sundays--a best buy in restaurants.

 

[Mulligan]

The Bureau of Labor Statistics has a wage inflation calculator that says wages are up over 400% since 1976, 613% since my date of 1970. Minimum wage was $1.60 in 1970 so $9.80. Against that yard stick we are still pretty far behind. In 1970, $10K was a good starting wage (equivalent to ~$60K today).

As a sub teacher in Chicago in 1973 (536%) I made $40/day which would be $10K ($53K today) on a full time, full year basis. About $8K based on a teacher's schedule or $42.4K today.

It definitely boils down to where you live. A neighboring school district currently pays $70 a day. I would have never guessed sub pay to have been that high anywhere in 1973.


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[lem1955]

If, like most people on this site, you worked in a cushy office job for most of your career, I think you would very much dislike working in a fast food restaurant. Working in fast food would require you to do actual work. You would be tired and sore all the time, not to mention you would smell(sweat and grease). My body hurts just watching the 20 year olds running around in back. I couldn't imagine a retiree trying to do that job.

I worked at Arby's for a term between freshman and sophomore years at college. By the time that was over, I knew why it was important that I stay in college. Worst job of my life.

 

[NanoSour]

Recently family went out for burgers and fries total cost $50. I need to either get a handle on inflation or stay at home for the rest of my life.

Took the wife and 3 kids out to a local eatery last Saturday. For 2 beers, 2 Ruebens, 1 burger, 1 fish & chips, and a pulled pork sandwich the bill was $79.83 with tax. Throw in the tip and we were $95 poorer for the experience. I was sick to my stomach and I don't think it was the food.

Needless to say, there won't be many of those experiences.

 

[rodi]

The closest I came to fast food work was working in the cafeteria of the local community college when I first graduated HS. Minimum wage was 2.90. My wage was 2.88. When minumum wage went up to $3.10, my wage went up to 3.08.

Apparently minimum wage didn't apply to government employees. I quit and went to work for an insurance company and got an instant 50cent/hour bump. I could actually support myself on the $3.60/hour job... I know because I did. Granted my diet had a LOT of ramen in it. But my divey apartment had a view of Mission Bay.

 

[donheff]

In high school in 1964/66 I worked behind the counter and running deliveries at a nearby drugstore for $.80/hour. That was an awful wage but everybody liked working there.

 

[Danmar]

I recall that as I was about to start work, I thought that I would reward myself with a BMW 730. Of course no way I could have afforded it with what I first made.

Then, came the cost of a home (14% mortgage rate) and raising a family, and to this point I never own a luxury car. Now, I look at fancy cars with indifferent eyes.

Sounds familiar. Couldn't really afford a nice car until I was about 50. Drive used beaters until then. After that I found myself able to afford nice cars and went a little overboard.

I would say given the quality of cars today there has been disinflation in car prices, ie you get a better car today for the same inflation adjusted dollar.

 

[kgtest]

Took the wife and 3 kids out to a local eatery last Saturday. For 2 beers, 2 Ruebens, 1 burger, 1 fish & chips, and a pulled pork sandwich the bill was $79.83 with tax. Throw in the tip and we were $95 poorer for the experience. I was sick to my stomach and I don't think it was the food.

Needless to say, there won't be many of those experiences.

Just got done ordering room service last night. Chips n Salsa, 2 California burgers and 1 diet coke cost me $55. I went to the local target, bought a loaf of bread, 2 kinds of lunch meat, a cheese platter, mayo and strawberries for $25. We pay for conveniences. I always remind myself that. We go out to dinner maybe 40-50x a year, $50 * 50 = $2500. My grocery bill is $300/month * 12 = 3600. 365days/year - 50 dinner outs = 315 dinners in.

Price Per Meal Eating out = $50
Price Per Meal Eating IN = $.0875

Ahh the price we pay to not cook our own food.

 

[ziggy29]

We go out to dinner maybe 40-50x a year, $50 * 50 = $2500. My grocery bill is $300/month * 12 = 3600. 365days/year - 50 dinner outs = 315 dinners in.

Price Per Meal Eating out = $50
Price Per Meal Eating IN = $.0875

I think you flip-flopped numerator and denominator in the cost of eating in. Instead of 315/$3600, which is 0.0875, this should be $3600/315 = $11.42. But that's the total budget per day, not just the dinner budget. And it presumably includes other meals (breakfasts and lunches) as well as those other meals on the other 50 days. So in reality, the cost of eating in is much less than $50, and considerably less than $11.42, but a LOT more than 8.75 cents, and still several dollars per dinner.

 

[NW-Bound]

After their wedding, my daughter and son-in-law checked into a honeymoon suite at the Phoenician, a 5-star resort in town. The next day, they invited us to have dinner with them there. We have eaten there once many years ago but at another restaurant in the resort, and have not been back since.

They paid for the meal as a thank-you to us, so I did not know the total. But I remember appetizers ran $15-30, entrees ran $25-60. A single side dish of potatoes or steamed broccoli cost $10. And the meal was good but not impressive. The decor was certainly very nice though, and that's what people pay for.

We both enjoy cooking, and we cook dishes that are not usually served in restaurants.

 

[UpAnchor]

The closest I came to fast food work was working in the cafeteria of the local community college when I first graduated HS. Minimum wage was 2.90. My wage was 2.88. When minumum wage went up to $3.10, my wage went up to 3.08.

Apparently minimum wage didn't apply to government employees.

It could also be said that your employer didn't give two cents...

 

[kcowan]

Sounds familiar. Couldn't really afford a nice car until I was about 50. Drive used beaters until then. After that I found myself able to afford nice cars and went a little overboard.

I would say given the quality of cars today there has been disinflation in car prices, ie you get a better car today for the same inflation adjusted dollar.

I have purchased 2 new cars: a Volvo when I graduated with my Masters, and a Pontiac Bonneville SSE when GE Capital made me an offer I could not refuse. All others have been 1 to 3 year olds.

 

[ziggy29]

We both enjoy cooking, and we can cook dishes that are not usually served in restaurants.

I enjoy cooking, too. I don't enjoy the prep work or the cleanup, though. If someone came over and did the prep work and the dishes afterward, I'd be happy to cook pretty much every day.

 

[NW-Bound]

We do not mind any of the work. I often tell my wife that it was a big deal in the old days when people had to go out to chase down a chicken, kill, and clean it. Then, to clean dishes, they had to use cold water drawn up by themselves from a well.

Nowadays, meat comes ready to cook, vegetable already trimmed, cooktop turned on with a turn of a knob, water on the tap nicely warmed. What's the problem?

 

[Philliefan33]

I enjoy cooking, too. I don't enjoy the prep work or the cleanup, though. If someone came over and did the prep work and the dishes afterward, I'd be happy to cook pretty much every day.

I would do the dishes every day if someone would cook for me. Do you live close to me?