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Buying the cheapest entry level house in a neighborhood is not doing it comfortably).
Depends on why you buy the cheaper house. If it's all you can afford, then you're right. If it's because you want to live in a specific town but you don't have a big ego and are fine with buying a house well within your means, then it facilitates an even nicer lifestyle. We could technically afford a house valued 2x the one we did buy but we're fiscally conservative and found one that was good enough. So I have a lot more discretionary income than I would have otherwise. We only have 3 bedrooms instead of 5 but we have a nice emergency cushion, lots of money in 401ks, IRAs, and 529s and take awesome vacations. And mother in law has to stay at a hotel when she visits Does this make me more or less UMC?
I like to think of myself as being middle class with the exception that I'm actually solvent. Like the millionaire next door kind of person.
Depends on why you buy the cheaper house. If it's all you can afford, then you're right. If it's because you want to live in a specific town but you don't have a big ego and are fine with buying a house well within your means, then it facilitates an even nicer lifestyle. We could technically afford a house valued 2x the one we did buy but we're fiscally conservative and found one that was good enough. So I have a lot more discretionary income than I would have otherwise. We only have 3 bedrooms instead of 5 but we have a nice emergency cushion, lots of money in 401ks, IRAs, and 529s and take awesome vacations. And mother in law has to stay at a hotel when she visits Does this make me more or less UMC?
I like to think of myself as being middle class with the exception that I'm actually solvent. Like the millionaire next door kind of person.
Discretionary income AND the in law stays at a hotel!?
YOU, madam, are my newest idol and mentor!! Seriously!
i know the house, it's a tear down for someone with 700 to build a new one
Quote:
Originally Posted by Tomais
LOL. Did you mean this one? For Sale: $237,000
Description
Home Partially Damaged Due To Fire. Fabulous Location..2 Blocks To Beach, Schools And Railroad! Detached Garage, Close To Railroad! Taxes Are W/O Star; Homeowner Wants All Offers! The Possibilities Are Endless!
Depends on why you buy the cheaper house. If it's all you can afford, then you're right. If it's because you want to live in a specific town but you don't have a big ego and are fine with buying a house well within your means, then it facilitates an even nicer lifestyle. We could technically afford a house valued 2x the one we did buy but we're fiscally conservative and found one that was good enough. So I have a lot more discretionary income than I would have otherwise. We only have 3 bedrooms instead of 5 but we have a nice emergency cushion, lots of money in 401ks, IRAs, and 529s and take awesome vacations. And mother in law has to stay at a hotel when she visits Does this make me more or less UMC?
I like to think of myself as being middle class with the exception that I'm actually solvent. Like the millionaire next door kind of person.
Yes, what is "affordable" (or what they think is affordable) is subjective and varies by person. I believe what some people here are trying t do is come up with some kind of generalized understanding of what it means to be UMC and what they can afford (in the general sense). In any case a house selling for $500K and up is an ill-advised investment for someone grossing up to $200K as this will mean socking up the dominant portion of their life savings in a single, illiquid asset class.
Agree with $400k+ for UMC. We have family at this level and they are very comfortable, own a second home, drive nice cars, travel, eat out regularly, go skiing, pay their college kids tuition cash, help their children a lot financially, paid their house off in less than 30 years.
We make just under $150 combined and rob Peter to pay Paul more often than we'd like. Bought our home without help and owe just about what we bought it for at 4.75%. Between taxes, mortgage insurance protection and the mortgage itself we are at $2800.00. We have two car payments (nothing fancy) because our truck's transmission went within a year of buying our home. Oil drowns us in the winter and food, gas and electric are not far behind. We have children so there are mouths to feed, clothes to buy and sometimes dinner, a movie or a day out bowling. We haven't gone on vacation since we bought our home. We live in probably what would be considered a working class/lower middle class area. Most houses here cost between $199k to $399k.
IMO these things are nice but not necessarily important to quality of life.
But being able to comfortably have them are indicative of upper middle class life. I agree that just because you DON'T have them doesn't mean you aren't. Second homes are a huge drain, but if you want to retire to it, it's great. My sister bought a second home in the Hamptons 25 years ago, now it's her primary residence and they will retire there.
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Does this make me more or less UMC? 
