Can you afford the 'American Dream?' Study shows the ideal lifestyle costs $130,357 per year

·        USA Today calculated the cost by adding expenses including home ownership, children, groceries, retirement planning, and health care

·        It's estimated only 1 in 8 households can afford the American Dream

·        Fewer families believe the Dream is in their reach, according to recent survey

A new analysis shows that only 1 in 8 families could afford the cost of living what's commonly known as the American Dream in 2014. 

Inspired by the new book 'Chasing the American Dream,' about the cost of the financial crisis, housing bubble, and Great Recession, reporters at USA Today calculated the cost of all those elements that make up the American Dream. 

For the project they included the costs of home ownership, moderate-cost groceries, a car, health insurance, taxes, educational expenses for your children, and retirement planning. 

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A new study shows only one family in eight can afford home ownership, children, retirement savings, and all the other things typically promised in the American Dream

They reached an average total of $130,357 per year in household income. 

WHAT IS THE COST OF THE AMERICAN DREAM? 

Here's how USA Today broke down the average expenses to live comfortably and raise children: 

Home ownership - $17,062 per year

Groceries - $12,659 for a family of four

Transportation - $11,039 a year for a four-wheel-drive SUV

Health Care - An average of $9,144 for out-of-pocket costs and premiums

Total taxes - Roughly 30 per cent of all income

Education - $4,000 per year for two children plus approximately $2,500 per child for college savings

Retirement - The maximum pretax contribution to a retirement plan for people under 50 in this income level is approximately $17,500

In a country where the median household income is roughly $51,000, that's a dream well out of reach for most people. 

In fact only 16 million households in America earned that much last year. 

Thomas Hirschl, a professor at Cornell University who co-authored the book, noted that most people surveyed did not desire to become one of the 1 per cent of earners, only to have a decent life.

'It's not about getting rich and making a lot of money. It's about security,' he said. He added that they also wanted to see their children succeed. 

'They want to feel that their children are going to have a better life than they do,' Hirschl added.