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In sifting thru some papers of a deceased relative I ran across a monthly budget prepared by the City of New York, Department of Welfare. It was prepared in March of 1943 (aside--the printed postmark on the envelope is stamped “Buy War Savings Bonds and Stamps). This budget was for a family of 4, (2 parents, 2 kids). I found it interesting to see some 'real' numbers from 60 years ago to illuminate some of the actual effects of inflation:

Food $39.10
Shelter (rent) 18.00
Cooking fuel 2.00
Heating fuel 7.80
Electricity 1.40
Clothing 7.80
Household .80
Personal 1.40

Total $78.30

Cross-posted to LBYM and Retirement Investing Boards…

2old

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"I found it interesting to see some 'real' numbers from 60 years ago to illuminate some of the actual effects of inflation"

From looking at the figures, I would say the moral of the story is to invest in Rental real estate and trends dealing with the the expansion of presonal spending!

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I notice there's no healthcare category in this budget.

Rocannon
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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.
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I notice there's no healthcare category in this budget. -- Rocannon

This was a budget for the Dept. of Welfare. Healthcare was handled by another charitable department because welfare recipients couldn't be trusted to hold onto that money until it was needed.

1HF
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Food $39.10
Shelter (rent) 18.00


Look at the ratio of food to shelter cost, more than 2:1. I would think that these days, it would be the other way around, with shelter cost being double that of food. Probably another sign of our housing bubble, soon to come to an end.

Adenovir
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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.


In 1965, when I was a little kid, we moved to a 4-room apartment (the upstairs unit of a double house) in Cleveland where our rent was only $40 a month.

A year later, the landlords -- an elderly couple -- sold the house to another elderly couple who promptly raised our rent to $45. My dad thought that rent increase was a really big deal.

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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.

Surprised you because it was 'high', or because it was 'low'? The $18 was for a 1 bedroom apartment in Brooklyn, NYC (also called a 3-4 room apartment). Does a 5-room apt in Minneapolis have 2 bedrooms? Here it does, and it almost doubles the rent!

2old

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Surprised you because it was 'high', or because it was 'low'? The $18 was for a 1 bedroom apartment in Brooklyn, NYC (also called a 3-4 room apartment). Does a 5-room apt in Minneapolis have 2 bedrooms? Here it does, and it almost doubles the rent!

2old


I guess I thought an apartment in NY would be more than one in MN. The apartment I described is in a 20's stucco 6-plex in my neighborhood. I think a five-room apt. would have two small bedrooms, a living room and a separate dining room. Now, the same place would go for about $900 or so.

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I think a five-room apt. would have two small bedrooms, a living room and a separate dining room. Now, the same place would go for about $900 or so.

Couldn't touch that for under $1200 in NY--in Manhattan would cost over $3000. {SOB}

2old
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