How Is Everyone Affording Life Right Now? (And Why You’re Probably Doing Fine)

Seriously—How Are They Doing It?

Alright, be honest—have you ever looked around and thought, “How does everyone afford this stuff?”
I’m not even talking about billionaires here. I’m talking about people my age or younger, jetting off to Europe, buying houses, posting their brunch pics at $14-a-toast kind of restaurants, and still managing to smile on Instagram stories like they’re not drowning in bills like the rest of us.

And here’s me, staring at my rent increase and wondering, “Uh, did I miss a memo?”

You’re Not Alone (Even If You Feel Like It)

Look, I get it. Sometimes, real numbers are hard to hear. But we gotta talk about ‘em, because the truth is—millions of us feel behind right now.
A recent LendingClub study found 55% of millennials live paycheck to paycheck.
And if you think it’s just millennials, nah. Household debt in America just broke another record: $18.2 trillion according to the New York Fed. Credit card debt alone? Over $1.3 trillion.

So if you sometimes feel like your wallet is stuck in 2009, you’re not alone here.

The Social Media Mirage (FOMO, Filters, and Phantom Wealth)

I can’t scroll for 30 seconds without seeing a “just bought my dream home at 23” or a friend who’s suddenly on a yacht in Croatia… and yeah, it feels like everyone is living in an alternate universe.

Here’s the part I didn’t see coming:
Social media isn’t showing you real life.
It’s mostly filters, credit cards, and a little bit of smoke and mirrors.
About 7 in 10 Millennials say social media gives them financial FOMO (NW Mutual survey).
There’s actually a name for how weird this can make you feel: “money dysmorphia.”
That’s right. Almost 43% of Gen Z and 41% of Millennials say their perception of their finances is way worse than the reality (LendingTree)!

Can You Really Trust What You See?

I didn’t realize until recently—but studies show social media makes people anxious, sad, and way more likely to buy junk they don’t need.
Did you know:

• 41% of Millennials have bought something just to “keep up” online
• About 40% actually end up in debt because of it (CNBC)

And TikTok? Don’t get me started. Half of users admit they buy something just because an influencer told them to.
And about a quarter of TikTok purchases result in regret. (Guilty.)

Want to see this explained visually?
📺 Watch: “Is Social Media Making You Poorer Than You Think?” by Graham Stephan

Meanwhile, Debt Is Winning

You know what’s not on the ‘gram?
$1.3 trillion in credit card debt with record-high 24% APRs (Bankrate).
Buy Now, Pay Later services like Afterpay and Klarna? Exploded from $2B to $46B in just a few years (Statista).
People are using these for groceries and gas, not just shoes.

Wanna hear something scary? 41% of people who use buy now, pay later have already missed a payment.
Yeah—it’s all being financed, and barely anyone is talking about that part.

Housing Is Not Getting Easier

Let’s talk homes (or the lack thereof). Won’t sugarcoat it: buying a house is harder than ever.
In the 90s, the average first-time buyer was 28. Now? It’s nearly 38 (National Association of Realtors).
Only 24% of home buyers are first-timers—a 40-year low.

Starter homes in “normal” cities now cost seven figures. Mega-investors (not families) are buying up 1 in 4 houses in some places.

And your salary? It hasn’t kept up—even though house prices shot up almost 500% in the last 40 years, wages inched forward, like, a few percent.

So, Is It All Doom? Honestly… No

Here’s the plot twist: You’re probably doing better than you think.
If you’re saving at all, even a little, or investing a few bucks in index funds, you might be ahead of HALF the country.
56% of Americans couldn’t cover a $1,000 emergency (Bankrate poll, 2024).
If you’ve got an emergency cushion? You’re winning already.

“Success isn’t about keeping up. It’s about stepping OUT of the race entirely.”

What’s helped me?

• Focusing on my real numbers.
  Not some influencer’s highlight reel.
• Living below my means (when I can).
• Investing a little every month, even when it’s not much.
  NerdWallet’s beginner investing guide
• Remembering: wanting less brings way more peace than owning more.

Little Trick That Changed My Spending

Next time you want something big? Save up for it, but don’t pull the trigger right away.
When you have the money, ask yourself: do I really want it, or do I just want the ability to buy it?
Often, not buying it feels even better.

And honestly, sometimes I run the math: If I invest that $1,000 for 20 years instead of splurging, how much would it be worth? That little calculation gets me every time.

Need a Lift? Check These Out:

• The Truth About Money Dysmorphia (LendingTree)
• How Interest Rates Are Really Screwing Us (NPR)
• 📺 Why Millennials and Gen Z Feel Poor No Matter What – CNBC
• Mumu (I use it for comparing ETFs. No, this isn’t an ad here, but I do like their portfolio tools!)

Final Thought: You’re Closer Than You Think

If you’re feeling behind…it’s not just you.
Most folks are wrestling with finances behind the scenes (and the ones flexing the most might be hurting even more).
Stay curious. Stay real. Your progress is compounding—even when you can’t see it yet.

If this gave you peace of mind, pass it on to a friend who needs a little honesty.
You’re truly not behind. You’re just living in the real world.