Computing the True Suburban Cost
Most people don't actually do the math and run the numbers for their suburban lifestyle
This article is for us folks in the suburbs.
I’ve spent most of my life in the suburbs, so I get it. This is what most of us were born into. It seems normal because it’s all we’ve known.
I have a few questions, just to get you thinking.
What is the true cost of living in the suburbs?
1. How much do you earn post-taxes and health insurance?
Start with your salary. Subtract federal taxes for your bracket. Now subtract state taxes. Now subtract your employer health insurance costs if applicable.
What number are we left with?
For many Americans this about $40-$50k post taxes.
2. How much is your mortgage or rent + home insurance? Subtract that.
Rent is simple. It will include maintenance + property taxes. Rent is also very high for most people right now, so it’s not exactly a great deal.
If you own a home, what’s your monthly mortgage? This should include your property taxes too. If you own your home outright, what’s your monthly property tax bill? You also need to factor in average maintenance. Did the HVAC break? Water heater? Did the house need new paint? Pest control? You might even have HOA fees to tack onto this number.
Add on your homeowners or renters insurance to your mortgage/rent.
Now subtract this from what’s left of your post-tax salary.
The median rent in American is over $1900. The median mortgage payment is just over $2000.
3. How much are you spending on cars to GET to your job?
Add up the monthly car payment(s), insurance, fuel, and average maintenance. For many Americans this is close to $1000 monthly.
Your car is mostly to get to work. Most people can’t write this cost off. You pay a massive chunk of your income just to get to work. Business can write off vehicle expenses, most workers cannot.
Subtract this from what’s left of your income.
4. What are your total utility bills + phone bill?
Combine water, sewage (if applicable), gas, electricity, and internet. Add this to your monthly phone bill.
Subtract this from what’s left of your salary.
5. What are you spending on food?
Monthly groceries + eating out. Subtract this as well. Take-out is easy after a long commute or a day sitting in front of screen.
6. Subtract education costs, entertainment and miscellaneous.
Streaming subscriptions, coffee, clothes, etc. Do you have student loan you’re repaying? Add this up and subtract it.
7. After all this, are you saving or investing anything?
Many Americans are not. Many folks are not doing this at all.
Is this sustainable? Is this working for you?
Did your property taxes jump after home prices increased massively?
How much time do you actually have left for LIFE after all these expenses are met, your job is worked, and the bills are all paid?
When many people run the numbers it’s often apparent that their suburban lifestyle owns them. Perhaps not everyone. But it’s increasingly apparent this system isn’t working well.
Ironically, the suburbs are even subsidized. Your property taxes don’t fully cover the costs of the roads and infrastructure where you live.
This means that:
A) Your property taxes will have to rise massively over time to cover these costs (this only tends to happen if your area gentrifies).
B) Costs won’t be covered and infrastructure will degrade over time after the initial build (this is more likely to occur).
The suburbs had a few decades where they seemed to work well post WW2. This was a mirage. The suburbs have been designed as a disposable model predicated on everyone owning cars, continual growth, and subsidized roads and infrastructure.
Even today, with the mirage still partly intact, is the lifestyle one that people truly enjoy?
With current home prices, car prices, energy prices, grocery costs, and property taxes, the suburbs seem to take everything you earn to keep functioning.
Most of us accept it because it’s all we know.
It seem inevitable.
However, it’s not.
The suburbs might be comfortable, but are they a golden cage?
Do you trade freedom for comfort?
There’s a growing movement of people opting-out to build freedom elsewhere outside of the rigid and outdated suburban models.
Rural property taxes are a fraction of the cost.
Off-grid homes can be built debt-free.
Health share medical programs can cost 1/2 of typical insurance.
Reducing car dependence can save tens of thousands of dollars yearly.
Ditching the corporate suburban commute and the matching lifestyle free up a great deal of time and money. the irony is that a city job often is very expensive to keep between the suburban home, the commute, the cars, the takeout, and the taxes.
It’s a real chicken and egg game.
You need the higher income to support the suburbs, you need the suburbs to support the higher income.
What if you opted out?
What if you cut your expenses by 50%, and cut your work time by 30%?
What if you moved to a quieter, smaller town?
What if you had time to hike, think, paint, explore, and create?
What if you earned less, because you needed less?
What if you had more time?
Is that type of freedom worth it for you?
Our mission at Acorn Land Labs is to share the ideas, methods, tools & concepts needed for people to leverage off-grid systems to live more freely and affordably. Go build something!
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Dear K. Excellent job of taking us, step by step, through the reality of modern serfdom. I just finished reading your book. Loved it! Simple and straight forward with beautiful art. Keep up the excellent work.