Given the high cost of education, housing, and health insurance, what can we do? How can we put on a cheerful face with Warren's statistics?
Apart from a "there but for the grace of God" situation like job loss or health crisis, here's what my family is doing to beat the two income trap:
- Scaling down our lifestyle to fit one income (bonus: less overall stress)
- Minimizing taxes where possible
- Staying in a job with decent health insurance
- Buying older cars for cash
- Resisting the urge to "move up" from modest housing.
Warren reminds us that it's not the choice of used cars or sale-price cereal which make or break us. It is our overall strategy of keeping up in a 2-income world.
However, I find that little decisions make the 1-income strategy easier and more enjoyable in the long term. What do you think?