As if we don’t have enough to worry about. A recession looks increasingly likely, which will last through most of 2023. Inflation is rising, along with interest rates, and many Americans continue to find themselves in dire financial straits.
But in terms of the financial impact of TikTok Ryan Halbert, it will be worse. If you make less than $25 an hour, in fact, he says “you should be scared.”
In a video that quickly went viral, Halbert breaks down the average cost of living in America. And it’s definitely awesome. After adding all the necessities, such as rent, groceries, gas and water, the average total cost comes to $3,285.37 per month.
To break down to a 40-hour work week, that means you have to make at least $20.50 an hour.
However, what is not included here is the tax, which Halbert goes on to explain and show in the spreadsheet. Add in taxes, and you’ll need to make $25 an hour to break even at $3,285, after taxes are taken out of your income.
“So this gives you very few options,” Halbert said.
“You either have to kill yourself with the way you work, too many hours, or you have to find a way to make a ton of money. And remember that these costs depend on doing nothing. No time off, no food, no extra miles on the car, nothing. “
Experts disagree on how to handle it
Halbert’s video caused a significant discussion among viewers, who quickly shared the video, which now has more than 1.4 million views. Halbert discusses some of the answers, such as cutting back to try to keep your costs down. This can include your streaming services, cable, internet, cell phone and other recurring costs.
But Halbert goes on to say that this is not a real solution. And he adds that you’ll be able to put $200 or more in your pocket, adding “it’s never going to increase, so you’re going to have to increase your income. You have to.”
This problem appears to be getting worse, according to the US Bureau of Labor Statistics. Current employment statistics for October 2022 showed that real hourly earnings decreased by 2.8% from October 2021.
Moreover, unemployment reached 3.7% in October.
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Halbert advises that working on the side won’t generate enough income, especially if you want to retire one day. Instead, it will invest – he says the only way.
But if you ask the figures behind the YouTube channel The Ramsey Show, it’s certainly not the only way.
“This is total nonsense,” said Ken Coleman, the Ramsey Show’s career coach.
Coleman, accompanied by George Kamel, host of the Ramsey Show, admitted that while they understand that many Americans feel this way, it is not correct. They specifically state that the average payment for a used car is close to $700, but also that the average rent will be close to $1,659 only in the most expensive cities.
This method does not have to be permanent
They gave Halbert some points, including that Americans continue to hand over their “hard-earned money” to creditors.
“They think, ‘This is how, this is how I get financial freedom, this is what success looks like.’ But we are not taught debt. Pay cash, find the right used cars. So this is a big part of the picture of why there is no limit to this person’s budget, said George Kamel.
But where the couple really had a problem was that the only solution was to “kill yourself while working,” or accept this fate. That’s because what Halbert covers in his videos are real cost-saving solutions. For example, a couple feels that it is not worth paying $1,659 in rent as a single person.
Instead, they recommend getting a minimum roommate to cut the cost in half. Or sell the car you can’t afford, Kamel suggested.
Ultimately, Coleman says that there are usually times in your life that you must go through on your path to financial freedom.
“This is not a sentence. This is the time of your life, but it is not a life sentence.”
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This article provides information only and should not be considered advice. Offered without warranty of any kind.