re: How can the average person afford to live?

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We were what you would call poor, although we thought we were well off. We went ten years after that with zero vacations. We drove old second hand cars, and we could only afford going out to eat about once per month. But we kept our heads down, working and raising kids. Eventually we got enough of a financial cushion, and enough work experience, and we started a business.

Do you have any more gotchas about how easy it used to be? It was easy, but not because the tasks were easier; it was because the people were tougher.

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Nailed it.

Bought my first house when both wife and I were making less than $35k a year, just like you said, by working hard, saving and sacrificing vacations, etc to make it happen.