Stuff You Should Know How much money do I really need to live?
Apr 21, 2009
The podcast explores questions around how much money we need to live, discussing topics such as estimating expenses, financial struggles, cooking at home, saving money, frugality, intense Deja Vu episodes, and listener opinions.
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Outdated Poverty Line Formula
- The official U.S. poverty line still uses a 1960s formula based on food costs multiplied by three.
- That formula ignores modern expenses like cars, cell phones, and internet which inflate real living costs.
Shock At Official Poverty Numbers
- Josh notes the 2009 poverty threshold: $10,830 for one person and $22,050 for a family of four.
- He expresses disbelief at how low those official figures are compared with real living costs.
Relative Needs Expand Necessities
- Wants and relative needs have expanded what counts as necessary to participate socially and economically.
- Items like cell phones become de facto necessities because they affect job competitiveness.