Should the poverty line be $100,000 a year? $140K? Odell Beckham describes his own struggles to live on $20 million . . .

Photo above - Odell Beckham Jr poses with his Rolls Royce and other cars in his $9 million collection, while explaining why it's impossible to live on $20 million a year ("That's only $12 million after taxes")

I was caught off guard earlier this year when clickbait articles appeared, claiming an income less than $100,000 a year was “poverty”. (Mine is below that). I had always assumed that somewhere between minimum wage ($15-ish) and $30 was poverty. $100,000? That would mean every teacher and police officer in America is below the poverty line. So this claim is complete BS.

Then Investopedia (link below) saw that ante, and raised the bet to $140K. WTH!! That’s $70 an hour. All the Baristas who are on struje at Starbucks will have their heads explode. Okay, we have too many Starbucks in America anyway. If people want to pull themselves out of poverty they should make coffee at home, instead of popping out for a $7.50 (plus tip) Grande every morning. (Disclaimer - actual prices may be higher in LA, NY, etc.)

This is the problem with national poverty lines that cover all 50 states. And national minimum wages. People in high tax/high housing states will always feel poor. And their jobs will keep migrating to the flyover states, where anyone making $70 an hour is a big shot. Or those coastal big city jobs will be replaced by robots, and soon AI. If everyone insists on $140,000 a year, then robots and AI will replace everyone, and there will be nobody left to tax. Don’t say “tax the corporations”. We (consumers) pay those taxes at the cash register, as Donald Trump so ably reminded us this year.

Why is Odell Beckham Jr in the headline at top, though? He has a $100 million, 5 year NFL contract. And he worries if he can make those paychecks last the rest of his life, once he retires for good, or suffers a career ending injury. I imagine that if you live in Los Angeles mansion, the future does look bleak when you realize your highest earning years are behind you.

Don’t tell Odell to save more and spend less. He’s already tried that, just like you and me. It often seems impossible to curtail your clothing purchases, clubbing habits, new additions to your car collection, and of course the Starbucks fix. In Odell’s case we can assume he picks up the Starbucks tab for his entire entourage.

I’m not making fun of Odell. Even if he is a clueless dropout who played for 4 different teams in the past 4 seasons and was recently suspended for violating the league’s PED (performance enhancing drug) rules. Odell DID try to get a college degree from LSU, but he dropped out in 2014 at the NFL’s suggestion to sign with NY Giants. For $2.6 million. Odell has struggled to make ends meet ever since.

In yesterday’s column I covered some smart aleck money manager from Edward Jones, whos advice for everyone is “don’t put your money in an IRA. Just start your own business.” I doubt it even someone as rich as Odell will try that. He’s painfully aware of his own limited business skills. Odell's future may involve Nike and Pfizer TV ads (like Dak Prescott, Travis Kelse, and Russell Wilson). Odell had better figure out how to make THOSE paychecks last, because they’re certainly not going to amount to $20 million a year.

I’m just sayin’ . . .

Is the Real 'Poverty Line' $140,000 a Year?

NFL star Odell Beckham Jr. reveals struggle of living on $100M contract and breaks down how $20M/year goes fast after taxes. Could you make it last?

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beckyromero · 36-40, F

As a society we need to acknowledge that the basic necessities for housing, medical care, food, transportation, clothing and basic household items needed should constitute the lower edge of the "poverty level" in the United States.

The official "poverty level" for a family of four in 2025 (FPL) in the 48 contiguous states and D.C. $32,150

Let's take Chicago. And let's assume a family of four.

The average rent for a two-bedroom apartment is going to be around $3,000/mo.

So, housing costs alone exceed the poverty level.

That's before medical insurance/care, food, transporation, clothing, household items, school-related costs, internet and/or cellphone (try applying for a job today without a cell phone or the internet). electricity, home heating, water, etc., etc., etc.

Furthermore, guidelines for who qualifies for federal assistance is based on multipliers of the poverty level. If the poverty level is set too low, fewer people are going to qualify.

A two-bedroom apartment in Brimingham, Alabama is going to be around $1,100/mo.

That's a big difference compared to Chicago. But so is the state minimum wage. In Illinois it is $15/hr. In Alabama? It's the federal level of $7.25/hr.

So, even with two full-time minimum wage earners:
$62,400 yearly income in Illinois
$30,160 yearly income in Alabama

Of course, that's before taxes, tax credits, health insurance co-premiums. Also before child care expenses (if two adults are going to be working).

How about food. The USDA's Thrifty Food Plan (the lowest cost) as of May 2025 was around $993 per month. That's about $12,000/year for a family of four.

Costs of Housing & Food
$48,000 for that family in Illinois
$25,200 for that family in Alabama

Now, of course if the government wants to declare that "poor" people are those without housing (and therefore without electricity, home heating, water, internet, transporation, clothing, school-related costs, etc.) those classified as poor would be able to eat in Alabama at a two-family income at the minimum wage. But that's about all. And that's assuming they could get a job without housing, a cellphone or the internet, and clothing.

Thinkerbell · 41-45, F

@beckyromero

Housing?

Didn't Comrade Khrushchev solve that problem over half a century ago?

Maybe we should adopt his methods.

They were called Khrushchevkas.

Housing for all, except the Nomenklatura, of course.

rocknroll

@beckyromero gets roomates. And if you spend that much on food in a month theres a problem

beckyromero · 36-40, F

@rocknroll

What are you going to suggest next? Bring China's former "one child policy" to the U.S.?

Go away with your COMMUNIST ideals.

SusanInFlorida · 31-35, F

@beckyromero thank you for making my case. big cities are insanely expensive. people should understand this before moving to chicago, LA, or NY and then complaining that rents are higher than they imagined.

beckyromero · 36-40, F

@SusanInFlorida

In many cases, that's where they were born or they can't afford to move or that's where family is or that's where the jobs are.

It's also led to what is called urban sprawl, where people move further out for cheaper housing only to discover the jobs aren't there or the transportation isn't there to get them to where the jobs still are.

Let's face it. Government urban planners have done a horrible jobs over the decades.

ElwoodBlues · M

@beckyromero says

... or that's where the jobs are.

And that's a key point. If you want to live in a low cost rural area and have access to a wide scope of jobs, you'll be spending about $1000/month on fuel, insurance, depreciation, and maintenance for car. Two workers in the household doubles the cost.
https://www.aaa.com/autorepair/articles/breaking-down-the-cost-of-car-ownership

Cities with their mass transit networks make car ownership superfluous as well as offering far more job opportunities.

beckyromero · 36-40, F

@ElwoodBlues

And the extra transit time, whether by car or public transportation (if that is even available) will increase the costs for child care.