Revealed: The staggering cost of achieving the ‘American Dream’ in 2024

The so-called “American Dream” is the benchmark that many people hope to achieve in their lives.

Many people aspire to get married, buy a house and a car, raise children and then enjoy a comfortable retirement.

But new analysis has revealed that achieving these milestones now costs as much as $4.4 million, putting it even further out of reach for the majority of Americans.

Not only is this far more than most people will earn in their lifetime, it is also one million dollars more than the estimate of the cost of the American Dream a year ago.

According to Investopedia’s analysis, the cost of saving for 20 years of retirement is the largest burden: almost $1.6 million.

The second largest expense, according to the analysis, is owning a home.

Investopedia estimates that purchasing a family home financed with a 30-year mortgage – and assuming a 20 percent down payment – ​​would cost $929,955 over a lifetime.

While this calculation includes homeowners’ insurance and property taxes, it does not include maintenance and homeowners’ association (HOA) costs.

This figure is significantly higher than 2023, when Investopedia put the homeownership estimate at $796,998.

In the year since, home prices have continued to rise in many places in the US, while home insurance rates have risen between 10 and 23 percent in some states.

The cost of car ownership has also skyrocketed in recent years due to high interest rates.

According to the study, this will cost the average American a whopping $811,440 over their lifetime.

This is for the monthly payments on a new car for two adults aged 29 to 74 – and doesn’t even include fuel and maintenance.

While the Federal Reserve cut interest rates from a 23-year high in September, years of high interest rates had made borrowing expensive for consumers.

The cost of raising two children – traditionally seen as an important part of the American Dream – is also among the highest costs of living.

According to the analysis, the total cost of raising two children through age 17 and then paying for each of them to attend a public college for four years is $832,172.

Investopedia also estimates the cost of a wedding at $44,300, lifetime ownership of a pet at $36,626, and an annual vacation over the course of nearly 60 years at $179,109.

Finally, it included the cost of a funeral — which averages $8,453, according to data from the National Funeral Directors Association.

The cost of raising two children – traditionally seen as an important part of the American Dream – is also among the highest costs of living

According to Investopedia’s analysis, the cost of saving for 20 years of retirement is the largest burden: almost $1.6 million

Investopedia also estimates the cost of a wedding at $44,300, lifetime ownership of a pet at $36,626, and an annual vacation over the course of nearly 60 years at $179,109.

Investopedia’s total cost of achieving the American Dream is more than $1 million more than most people earn in a lifetime.

However, it was pointed out that this is not at odds with what some dual-income households could earn.

The average bachelor’s degree holder in the U.S. earns about $2.8 million over his career, with women earning $2.4 million and men $3.3 million, according to analysis from the Georgetown University Center on Education and the Workforce of the American Community US Census Bureau Survey.

Looking at the data per household, the average American household of dual-income households with a bachelor’s degree has lifetime earnings of $5.6 million, according to Investopedia.

But it added that the $4.4 million represents the cost of a lifestyle associated with the American Dream, and not the reality for most people.

It does not take into account other crucial costs of living, including food, healthcare, car insurance, transportation and other basic needs.