The so-called “American Dream” is a benchmark that many people hope to achieve in their lifetime.
Many people want to get married, buy a house and a car, raise children, and then settle down into a comfortable retirement.
However, a new analysis has found that achieving these milestones now costs a staggering $4.4 million, putting them even further out of reach for most Americans.
Not only is that significantly more than most people will earn in a lifetime, but it’s also $1 million more than the estimated cost of “The American Dream” a year ago.
According to Investopedia’s analysis, the greatest burden is the cost of saving for 20 years of retirement, which is almost $1.6 million.
A new analysis has found that achieving the so-called “American Dream” now costs a staggering $4.4 million
The analysis shows that the second highest cost is owning a home.
Investopedia estimates that purchasing a family home financed with a 30-year mortgage – assuming a 20 percent down payment – will cost $929,955 over your lifetime.
While these calculations include homeowner’s insurance and property taxes, they do not include maintenance fees or homeowner’s association (HOA) fees.
This number is significantly higher than in 2023, when Investopedia estimated the value of home ownership at $796,998.
Since this year, home prices have continued to rise in many places in the U.S., while home insurance rates have increased by 10 to 23 percent in some states.
The cost of owning a car has also increased over the past few years due to high interest rates.
The study estimates that it will cost a whopping $811,440 over the average American’s lifetime.
This applies to the monthly payment for a new car for two adults aged 29 to 74, and doesn’t even include fuel and maintenance.
While the Federal Reserve cut interest rates in September from a 23-year high, years of high interest rates have made borrowing expensive for consumers.
The cost of raising two children – traditionally seen as a key element of the American Dream – is also among the highest expenses in life.
The analysis shows that the total cost of raising two children until age 17 and then paying for each of them to attend a public college for four years is $832,172.
Investopedia also lists the cost of a wedding at $44,300, lifetime pet ownership at $36,626 and annual vacations over nearly 60 years at $179,109.
Finally, this amount included the cost of a funeral, which averages $8,453, according to the National Funeral Directors Association.
The cost of raising two children – traditionally seen as a key element of the American Dream – is also among the highest expenses in life
The biggest burden, according to Investopedia’s analysis, is the cost of saving for 20 years of retirement, which is almost $1.6 million
Investopedia also lists the cost of a wedding at $44,300, lifetime pet ownership at $36,626 and annual vacations over almost 60 years at $179,109
Investopedia’s total cost of achieving the American Dream is over a million dollars more than most people earn in a lifetime.
However, he pointed out that this is not far from the income that some dual-income households may earn.
According to the Georgetown University Center on Education and Workforce’s analysis of the U.S. Census Bureau’s American Community Survey, the average U.S. bachelor’s degree holder earns approximately $2.8 million, with women earning $2.4 million and men earning $3. .3 million dollars.
Analyzing the data by household, the average American household of two people with a bachelor’s degree has lifetime earnings of $5.6 million, Investopedia reports.
But he added that $4.4 million is the cost of a lifestyle associated with the American Dream, not a reality for most people.
It does not take into account other key costs of living, including food, health care, car insurance, transportation and other basic needs.