Even in this failing economy, money is not the key factor to ride the disaster out. One of the aftermaths of this world- wide pandemic is that people are compelled to be habituated to a lower cost of living. Compared to 2020, the annual per capita cost is projected to be lower. There is a study by Charles Schwab on the notion of wealth for the people in San Francisco Bay area showed that in people’s notion the average net worth to be wealthy, which was $4.5 million in 2020, has come down to $3.8 million in 2021; that for “financial happiness” was $2.1 million in 2020 and $1.8 million in 2021. The net worth of “financially comfortable” was $ 1.5 million in 2020 and $1.3 million in 2021.
This study is based on the home owners in the San Francisco Bay area is not wholly true, because there are a large number of people who do not own homes and do not intend to, either. Owning of home begets some extra expenses like the paying of mortgage for 30 years and other related costs. It also requires a lump sum payment up front, around $100,000 in average. The mortgage amount is greater than the rent payable for a comfortable house in the city of San Francisco. The so called “asset”, which we crave for in our youth, becomes “liability” as we age. The number of rooms, which was a great attraction at time, remains unutilised and full of useless furniture.
Ownership of home is associated with ownership of an expensive car, which involves a large sum for parking alone. On the other hand, a modest but good car, which may be parked in the street will cost much less. People, who live in the posh suburb areas, commute much more, than modest people, who live in the heart of the city and spend much more on gas alone. A modest person with a rented house in the city can live by spending $50 bi-monthly on an average, which is impossible for these suburb wealthy people.
Big cities have so many sports and cultural amenities compared to suburbs so that people can enjoy life more than the suburban people who prefer to relax in their big homes. There are small things in life which can offer great happiness like travelling, which carefree people can enjoy. However, people with a bundle of mortgage overhead can only dream of travelling after retirement.