Single Family Homes are Too Expensive for Most Americans

How many first-time home buyers make $75k? That’s a starting salary for an engineering graduate from a good university.

According to this PennyMac Home-Buying Guide:

If you’re in the market for a home, the first thing you should do is figure out how much you can afford.
Here are two down-and-dirty formulas you can use to get a quick ballpark number:

1) Multiply your annual salary by 2.5. For instance, a family with a household income of $75,000 could afford to purchase a home for up to approximately $187,500. Of course, this figure will vary based on factors that include how much money you can put down and your current debt.

2) Multiply your monthly gross income by 31%. If you make $7,000 a month ($84,000 annual salary),then your total maximum monthly payment would be $2,170*. This includes mortgage principle, interest, taxes, and insurance.

Top 1% Includes Lots of Entrepreneurs

Salaries of the Rich and Wealthy

Federal Reserve Shareholders (aka global elite?): Unknown but the Fed owns 4.5 trillion in assets so the shareholders’ wealth makes even the top 1% look poor.

Top 1%: $423,090
Top 10%: $157,479

Notice these numbers are flawed if the top 10% includes the top 1%.

If salaries were grades then even 100k means you’re a B student.

BYU Tech Graduate Salaries Higher than 73% of Americans who Earned Less Than $50k in 2012

Although these official salary figures are dismal for the majority of Americans, the average starting salary for our tech graduates at BYU puts them above 80% of the nation.

As an entrepreneur supporting a family of nine, my annual salary has varied from no income to six digits. When we suffered through very difficult financial times, rather than reward us for paying off debt, credit accounts were automatically closed, keeping our credit score in the low 600s.

In other words, although failed entrepreneurs are more likely to succeed in the future, once they fail it is almost impossible to recover and get capital.