Today, after just making responsible decisions, I have a healthy retirement fund cranking along, and have enough money banked to pay off my house (didn't have the house until 1992) and to pay off the remainder of my car loan. In effect, I have absolutely no debt and have a decent positive worth. I am not in a high-powered job and the wife makes less than $30K/year. The only reason we're in good shape is that we don't throw money away on fluff. We don't live like Spartans, either. We have nice vehicles (Jeeps) good furniture, we eat well and dine out several times a month, take vacations, etc. I know folks that make twice as much as us and who have no savings and have multiple mortgages to facilitate their "lifestyles".
That is how we live. I drive 2001 jeep. I will drive it until the tires fall off.
Yes, it's possible to live quite "affluently" on even modest salaries if one spends wisely.
For example, I have plenty of money to buy a $29 t-shirt at Nordstrom's, but why should I when I can get the functional equivalent at Wal-Mart for $4.99?
I was spending $80 a month on haircuts for my boys. NOT. Another mom told me she cut her boys' hair (they mostly want military-style high-n-tights, especially during the summer) and that it was pretty easy to please them. A $29.00 clipper (from Wally World) later and we were in business. And the boys (and Mom) like the convenience of not having to make the trip to the barber shop, wait in line etc. This way it's zip and go. And parents save $80 bucks a month.
It all adds up --- to, say, our four vacations in Hawaii!
I pay cash for everything except my mortgage, which I am paying down 2x and will be done in 5 years.
We keep a small account that we put $$ into so when we want to buy something or go somewhere we have it already accumulated. But we don't use it much -- we are OK with a 5-yo TV and a 8-yo DVD player/sound system.
We keep our cars in excellent shape -- at the current rate they will last about 20 years.
I don't how debt-ridden people sleep.
Like our so-called government?