middle class income?

[cats mom]

This is the way I've always looked at it-

Low- Barely getting buy, living on credit, living on gov't assistance, paycheck to paycheck. Maybe has some substantial debt. No savings

Middle-Low Getting by, living on credit when needed, has some debt or no debt but pinches pennies, pretty much paycheck to paycheck. Clips coupons, finds deals etc to cut costs. Hard to go on vacation due to money issues. Little or no savings

Middle-High/Middle Not living paycheck to paycheck, lower debt compared to income levels, affords yearly vacations without hassle, able to buy a vehicle and pay for it without much trouble. Able to get "wants" without much issue. Has savings. Has to work to keep the money coming

High - Makes comfortable salary, spends money on whatever and whenever, has savings, just a comfortable living situation. Income from investments and working.

Sounds reasonable, although as Dawn already pointed out:

If I make $250K per year but spend $300K per year, I am poorer than the person making $75K and who spends only $50K.

Where do you put my friend Stanley Johnson and everyone like him?

Find Stanley here:

http://www.youtube.com/watch?v=r0HX4a5P8eE

Maybe it's a function of where I live, but I honestly don't think it's a stretch to assume that plenty of people who appear to fall in your middle-high to high classifications actually more closely fit the description of your low classification, although perhaps minus the government assistance part, at least in terms of need based aid.

So where do you put someone with an income of say $150,000 a year, but who has no savings, finances all their high end toys and vacations, and is basically living paycheck to paycheck... but in a big way of course.

 

[DawnM]

I put Stanley in the "made some very foolish decisions" category.

He is my former neighbors. They had the most expensive house in the neighborhood, remodeled the entire thing to the tune of 200K in remodel expenses, they have a cabin in the mountains, a part time nanny, take their daughter to expensive gynmastics coaching practice with some former Olympiad, have a boat, three cars, and on the on it goes.

She said to me one time, "You know that commercial where the guy says he is in debt up to his eyeballs? well, we are beyond that!"

They were foreclosed on and last I heard they are in a bad place financially and have lost almost everything.

The saddest part to me is that these people HAVE the resources to make it, but they don't have the practical application of money skills to make it work.

We make less than our neighbors did, but we don't have any of those extras because we are very intentional with our spending. If you have read The Millionaire Next Door, that is how we strive to live. We aren't perfect but we do spend less than we make.

Dawn

Sounds reasonable, although as Dawn already pointed out:




Where do you put my friend Stanley Johnson and everyone like him?

Find Stanley here:

http://www.youtube.com/watch?v=r0HX4a5P8eE

Maybe it's a function of where I live, but I honestly don't think it's a stretch to assume that plenty of people who appear to fall in your middle-high to high classifications actually more closely fit the description of your low classification, although perhaps minus the government assistance part, at least in terms of need based aid.

So where do you put someone with an income of say $150,000 a year, but who has no savings, finances all their high end toys and vacations, and is basically living paycheck to paycheck... but in a big way of course.

 

[Planogirl]

My father was a member of the working class and I'm still trying to make what he did. Many of those in that class made some good money back in the day.

 

[mrodgers]

My father was a member of the working class and I'm still trying to make what he did. Many of those in that class made some good money back in the day.

I am the opposite. My father was the vice president of a small corporation. I make more than he did 20 years ago when he passed on. Both my wife and I are working just trying to keep ends meeting.

 

[ilovemk76]

Sounds reasonable, although as Dawn already pointed out:




Where do you put my friend Stanley Johnson and everyone like him?

Find Stanley here:

http://www.youtube.com/watch?v=r0HX4a5P8eE

Maybe it's a function of where I live, but I honestly don't think it's a stretch to assume that plenty of people who appear to fall in your middle-high to high classifications actually more closely fit the description of your low classification, although perhaps minus the government assistance part, at least in terms of need based aid.

So where do you put someone with an income of say $150,000 a year, but who has no savings, finances all their high end toys and vacations, and is basically living paycheck to paycheck... but in a big way of course.

That is an upper middle class person pretending to be upper class.

 

[chiefmickeymouse]

I think it could be both. We're a military family and I would say most military families are middle class. We have a room for each kid (only 2 kids though, lol), 2 cars and travel extensively. DH has 15 years in and will pension out young. Lots of military qualifies for reduced lunch and WIC etc... but only because they only take into account taxable income. Plus with benefits we are very comfortable middle class.

I grew up into what some consider rich. I went to private elementary school because we lived in a poor area (my Dad was finishing up his residency in family medicine). But once my Dad was established we moved a nice area and went to public school. Me and DH are planning on sending our DD to private school for kindergarten because we'll be in Alaska and they have a horrible school system. It's just a financial priority for us.

Where in Alaska? We were in Anchorage and Fairbanks and had great experiences with the schools.You want horrible, try South Carolina!
S

 

[ICF]

There is no real accurate answer to this question.

I could say that our family makes $X.....

One person in middle america thinks X is a large $ and could live a very nice life in their town. To that person, I may be "upper" class.

Another peson from the East coast says..."You only make X"....I couldn't even get a 1 bed room apartment and still feed myself on THAT salary. To them I am one step above poverty level.

Me...I say "X" is a fine salary. I have no debt except a mortgage, save for college / retirement and take a nice vacation every year or two.

Also -- at the end of the day, it's not so much what you make....but what you spend...which I think was already mentioned. A person can make $40K a year, but if once all bills are paid they have $10K left to enjoy life that's pretty good. A person that makes $200K and can't control their spending -- racking up lots of CC and other debts -- and doesn't save anything is probably the worse off of the two.

 

[budafam]

I haven't read all the replies to this but just wanted to add in. My dad bought his house 40 years ago and paid $7000 for it. He had to borrow the $200 from his boss at the time for the down payment. Not only did he buy the house but 4 additional surrounding lots which he sold off at a later date for a measly $2000 each. (those lots are now worth about $40,000 each in his neighborhood). We bought a house a block away from him (I love this neighborhood) and we paid $99,000 for it. It's almost a complete copy of his home, just that it was stuck in the 70's and needed updating.

I consider us to be middle class. We have a bit of savings (more so than any of our friends) and we have a home, 2 vehicles and many little "extras". We can afford a vacation every year (thanks to tax returns). I clip coupons and send in rebates for $1. I pinch pennies wherever I can. We don't go out to eat, don't smoke, don't go to the bars... then people wonder how we can afford to go to Disney 2 years in a row or buy a big screen tv...