Do We Really Need Dual-Incomes?

Most people would say that to be able to live comfortably in America today, you need a double income. To afford a home, cars, and some vacations, both parents have to work - or do they?

For a long time now, we have fooled ourselves into believing that most middle income families need to be bread-winners these days in order to make it in life. However, if people are making more money now than their parents' generation, why do they still have less then?

The Commerce Department just reported in February that savings for 2006 were negative 1 percent, which is the lowest it has been since the Great Depression. So, what is happening to all of our money?

It is true that things cost more in general than they did a decade ago, but if we are making more shouldn't that compensate for the inflation? One would think that, but the reason a household needs two incomes these days does not have as much to do with inflation as it does with the lifestyle choices people make today. We need dual incomes to feed the wants we have nowadays for things like electronics, cars and pricey vacations.

Things that were once considered luxury items two generations ago, are now considered must-havs for working people these days. Look no further than the recent passing of the Super Bowl.

The National Retail Federation estimates that about 2.5 million Americans purchased an HDTV and 1.3 million bought new furniture in the days leading up to the Super Bowl. This is in addition to the average $49 per person spent on merchandise and food for the big game. Are these things necessities? No, but they facillitate a lifestyle of affluence. We are a little more selfish and a little more comfortable these days where the idea of luxury is something that can now be attained by the middle class (even if it does mean putting that purchase on credit).

In addition to more purchases, we in general, are more careless with our money. It is no wonder we should need an extra income in each household if people continue to casually waste money. Some banks are now charging as much as $35 as an overdraft fee on checking accounts. So, rather than saving that $35 for an emergency, we are now spending it to cover up an error on our part.

From spending on clothing to cars and electronics, the amount of products we are buying at rapid speeds has given way to less saving and the constant need to have more. It's that old adage that the more you have, the more you want. Well, the more money people make, the more they will want to make to buy more stuff.

So, the next time you are thinking of forking over $200 for the latest cell phone style, you may want to evaluate just what is so wrong with the cell phone you currently have. If it is still working, you may want to rethink your purchase.

In addition for luxuries such as vacations, attempt to pare down your costs by doing less expensive (but still fun things). Going camping is a less expensive vacation, but is more fun for kids (to be able to run around and be outside rather than cooped up in a hotel room).

As for large purchases such as electronics or cars, weigh your decision to purchase based on need. If you don't absolutely need it, don't buy it. But then again, the same logic should go for just about anything whether it have a big price tag or a small one.