The “Basic” Lifestyle Breakdown

The numbers listed in this post were found through Internet searches. They are for illustrative purposes only.

Housing & Location:

• Trendy neighborhood apartment: $2,800/month
• Annual rent: $33,600
• Reality check: This requires a $112,000 salary (using the “30% rule”)

Transportation:

• Lease on Instagram-worthy car: $450/month
• Insurance for someone under 30: $220/month
• Gas and maintenance: $150/month
• Annual cost: $9,840

Fashion & Beauty:

• Seasonal wardrobe updates: $2,000/year
• Skincare routine from TikTok: $800/year
• Hair/nail maintenance: $1,800/year
• Annual cost: $4,600

Food & Social:

• Brunch 2x/month: $600/year
• Coffee shop visits: $1,300/year
• Date nights/friend dinners: $2,600/year
• Trendy restaurants: $1,200/year
• Annual cost: $5,700

Travel & Experiences:

• 2 vacation trips per year: $4,000
• Weekend trips: $1,500
• Concert/event tickets: $800
• Annual cost: $6,300

Fitness & Wellness:

• Boutique gym membership: $1,800/year
• Yoga classes: $1,500/year
• Wellness trends (supplements, treatments): $1,000/year
• Annual cost: $4,300

Technology & Subscriptions:

• Latest iPhone upgrade: $500/year
• Streaming services: $900/year
• Apps and software: $200/year
• Annual cost: $1,600

Annual cost of “basic” millennial lifestyle: $65,940, requiring a pre-tax income of $85,000-95,000.

If you follow the 30% rule, your post-tax annual income would need to be $112,000.

And notice things like groceries, utility bills, and saving for retirement didn’t make the lifestyle list.

Plot twist: The median salary for ages 20-24 is $40,768 and for ages 25-34 is $59,072.

The Wealth Gap Nobody Talks About

What this lifestyle actually represents:

• Top 25% of earners for the age group
• More than many people’s total salary
• More than the median household income in 28 states
• Enough to max out a 401k and Roth IRA annually

Meanwhile, the financial stress:

• More than 60% of people are living paycheck to paycheck
• Average credit card debt: $7,321
• 63% of people can’t cover a $500 emergency
• Student loan debt averages $39,075

The “Comparison Trap” Math

I then created a persona made up of myself and several friends, and calculated what a realistic lifestyle costs:

Real Numbers:

• Housing: $1,300/month = $15,600/year
• Transportation (maintenance for a used car, paid off): $1,500/year
• Food (mostly cooking): $3,600/year
• Entertainment: $1,800/year
• Travel: $2,000/year
• Everything else: $3,000/year

Real total annual lifestyle cost: $27,500 Required income: $35,000-40,000 (you know, what most of us can hope to make in our first “grown-up” job)

The Freedom Formula

What “keeping up” would cost annually:

• Extra $38,440/year in lifestyle expenses
• $1,084.20/year in credit card interest if financed
• 15-20 years longer to financial independence
• Constant financial stress and anxiety (because we need more things to be anxious about)

What choosing a ‘non-Insta’ path gives you:

• Maxed out retirement accounts
• Emergency fund that you’re able to increase your contributions to
• Pay off debt without creating more debt
• Investment portfolio that can grow without you taking money from it
• Financial freedom for present-day you and future you

Not living an influencer lifestyle doesn’t mean you’re missing out on life. It’s possible to spend time with friends, go on vacation, and treat yourself without breaking the bank. Look for YBWealthy posts for ideas.