From NJBIZ:
Living La Vida Loca in New Jersey
Wasn’t it a nice tribute that the most recent U.S. Census put New Jersey as the wealthiest state in the country, per capita income-wise?
Well, New Jerseyans sure don’t feel that honored, or wealthy. And it’s quite possible they’re really not.I recently spoke about this contradiction with the head of Monmouth University’s polling institute, Patrick Murray, who tracks attitudes in the state about money and politics, among other subjects.
A lot of money may be coming into the average household in New Jersey—but residents say just as much money seems to be going out.
“The rising cost of living in New Jersey is a major problem for families at every income level,” says Murray. “In fact, the large number of upper-income families in the Garden State who feel they can’t make ends meet is something you just don’t see in the country as a whole.”
…
In New Jersey, it’s expected for households to have multiple streams of income, he says, with two people working—sometimes at more than one job. Most households earning more than $100,000 a year require a second income to get there. Yet 60 percent of those polled have that sinking feeling that they are not keeping up.Skyrocketing house values make people in New Jersey feel “paper rich,” Murray says. “But you can’t chop off a piece of the house to pay a hospital bill in an emergency.”
If that emergency arises after the loss of a job, he notes, only 43 percent of New Jerseyans say they could make it for even six months on their savings, according to a recent Monmouth survey. Moreover, they would presumably have to begin selling assets like their homes, which could take a long time to move in today’s weak housing market.
…
So where does their income go? Two-thirds goes to monthly expenses like mortgage payments, food and the highest-in-the-nation real estate taxes.The most recent Monmouth poll was very similar to another survey conducted a couple of years ago by the Star-Ledger. “It was truly amazing how few people thought eating out several times a week, expensive vacations and very fancy leased cars were a luxury,” one editor told me at the time.
BLOODY HELL!
“It was truly amazing how few people thought eating out several times a week, expensive vacations and very fancy leased cars were a luxury,” one editor told me at the time.
A few years ago, one of my neighbors (in NYC) decided to test whether it was cheaper to order take-out every night or cook dinner for herself. Duh. Needless to say, it didn’t surprise me when she subsequently took out a home equity loan to buy herself a brand new mini cooper…
That last segment completely contradicts the rest of the article. On one hand people are having trouble paying for the necessities and yet huge numbers are splurging on cr@p?
I would at least like to have seen some statistics on who thinks that all that stuff is not “luxury” rather than just one editors statement about large numbers of spendthrifts.
Maybe Jersey is split between those who live within their means and a bunch of credit junkies?
I dunno, people I know don’t buy luxury goods. And what’s an expensive vacation, anyway? A week at the Jersey shore is going to run a family a couple grand easily. We have two economy cars that are paid for, we live in a cape that would be described here as a POS because we don’t do improvements until we can pay for them with cash, we go to Jamaica every year and stay at a hotel that gives us a repeat guest rate so the whole mess costs under $2K for the two of us, and we rarely eat out anyplace where it costs more than $25 per person. And if either of us lost our jobs, we would be f***ed because of car insurance and property taxes.
What’s a vacation? I haven’t been able to afford one of those in 5 years.
There are just a lot of people who spend every penny that comes in the door. Some people do it because they legitimately don’t have any choice, some because they don’t think they have any choice.
On occasion, I get the feeling many of those in the latter group comment here.
It is funny – hospital costs for uninsured in NJ is the highest in teh country.
Car Insurance is the Highest in the country after NYC.
Property Taxes – the highest in the country.
Rents – one of the highest in the country (after NYC, Washington DC and SD, SF, LA)
State taxes – one of the highest in the country.
Federal taxes (NJ-seans paying more since their incomes are highest in the country)
General Sevices – expensive as everything else.
People getting squizzed from every angle in NJ.