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Old 01-07-2012, 06:40 AM
 
4,135 posts, read 9,115,274 times
Reputation: 2677

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Quote:
Originally Posted by unseengundam View Post
I have to lot of so called middle class in American really can't afford that lifestyle. I think you need make over $100k+, even in an cheaper place like Dallas. For expensive areas, like NYC, you might need like $500k a year! Most people in middle class would should be called the "working class" instead. The middle class lifestyle has many expenses (listed below) and it can get expensive.

Here is what I think most people consider a middle class lifestyle:

-Retire with same lifestyle as pre-retirement
-1-2 years worth of spending money in cash
-Enough money to buy a nice single family house (McMansion)
-Be able afford to put kids through university
-Money to buy new cars every 3-5 years
-Afford nice vacations each year (probably $10k+)
-Money to buy latest smartphone every 2 years,computers, and other electronics

The excepted middle class lifestyle is NOT really frugal. When you look at this list, you can tell how expensive it can get. Being able to spend a lot of your money while still saving for retirement requires a high income.

A lot of people living this lifestyle on has no retirement saving and/or tons of debts. These people are really working class can't / shouldn't try to go for this lifestyle. Of course people making less than $100K (like me) can save for retirement by living more frugal lifestyle. However, you will definitely miss many middle class niceties like brand new cars every few years!
Bosh. Your concept of middle class is skewed by people who waste money. I consider us firmly middle class and we keep the same lifestyle as pre-retirement and have money socked away, but we didn't :


Buy an new house (same one we bought getting married - less than 100 sq. feet). never moved in over 40 years.
We don't buy 2 cars ever few years; just one car and trade when it is getting to where it is a money pit.
Don't do any $10K vacations; don;t to any big vacations. Most want fancy clothes and we are jeans people.
Our computers are almost 10 years old as alre all electronics except cellphones where we get the " freebies "

Yes, we paid for the kids college ( some of it). That was when we were working. They also got the old cars.

We also carry no mortgage or debt and are very happy with that. Then we bank what doesn't get spent...
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Old 01-08-2012, 11:21 PM
 
293 posts, read 383,447 times
Reputation: 467
What you're describing sounds like an upper middle class lifestyle.
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Old 01-08-2012, 11:31 PM
 
Location: 60630
11,626 posts, read 17,035,814 times
Reputation: 10632
Quote:
Originally Posted by unseengundam View Post
I have to lot of so called middle class in American really can't afford that lifestyle. I think you need make over $100k+, even in an cheaper place like Dallas. For expensive areas, like NYC, you might need like $500k a year! Most people in middle class would should be called the "working class" instead. The middle class lifestyle has many expenses (listed below) and it can get expensive.

Here is what I think most people consider a middle class lifestyle:

-Retire with same lifestyle as pre-retirement
-1-2 years worth of spending money in cash
-Enough money to buy a nice single family house (McMansion)
-Be able afford to put kids through university
-Money to buy new cars every 3-5 years
-Afford nice vacations each year (probably $10k+)
-Money to buy latest smartphone every 2 years,computers, and other electronics

The excepted middle class lifestyle is NOT really frugal. When you look at this list, you can tell how expensive it can get. Being able to spend a lot of your money while still saving for retirement requires a high income.

A lot of people living this lifestyle on has no retirement saving and/or tons of debts. These people are really working class can't / shouldn't try to go for this lifestyle. Of course people making less than $100K (like me) can save for retirement by living more frugal lifestyle. However, you will definitely miss many middle class niceties like brand new cars every few years!

So if you can buy a brand new car every 3 year you are true middle class! ?
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Old 01-08-2012, 11:40 PM
 
18,856 posts, read 30,440,508 times
Reputation: 25990
So, what happens when husband is paying out child support to 2 or 3 wives? This lifestyle only works, with one high wage earner, or two median wage earners. And no divorce.

The best way to ensure your financial security? Stay married.
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Old 01-09-2012, 07:44 AM
 
Location: 60630
11,626 posts, read 17,035,814 times
Reputation: 10632
People fail to realize that the more money you have the higher bills you have. Just because someone makes 500k does not mean that they are debt free. I would say, that if you make 60k a year and are debt free, you might be better off than someone making 500k a with millions of dollars in debt
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Old 01-09-2012, 08:59 AM
 
Location: Baltimore, MD
3,864 posts, read 7,064,327 times
Reputation: 5112
Quote:
Originally Posted by glass_of_merlot View Post
People fail to realize that the more money you have the higher bills you have. Just because someone makes 500k does not mean that they are debt free. I would say, that if you make 60k a year and are debt free, you might be better off than someone making 500k a with millions of dollars in debt
While that is true, is those people were smart and lived as if they only made $100k, they could live financially secure and debt-free. But many times they don't, I guess.

I always said if I came into money, like won $1 million from the lottery, I'd buy a modest house for $200k, in cash and live my life pretty normally, putting more away and investing some. My grandkids should see some of that cash.

Property taxes alone in huge houses are enough for me to stay away from them.
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Old 01-09-2012, 09:13 AM
 
8,195 posts, read 10,205,914 times
Reputation: 7485
Idk,I'm just staying afloat on that amount of money.
But I'm in Nj.

Some people are saying cell phones,cable service aren't apart of being middle class.
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Old 01-09-2012, 11:13 AM
 
Location: Chicago
5,412 posts, read 8,277,963 times
Reputation: 6347
Quote:
Originally Posted by glass_of_merlot View Post
People fail to realize that the more money you have the higher bills you have. Just because someone makes 500k does not mean that they are debt free. I would say, that if you make 60k a year and are debt free, you might be better off than someone making 500k a with millions of dollars in debt
Yes, but every situation is different. I make a lot of money and also have a lot of debt. All my debt is business/commercial loans (not consumer debt) and I am fine with my debt levels and the risks I take. A lot of money flows in and out of my business - it is not for the faint of heart. But I would rather have it this way than make $60K debt free with career/income limits (I have been there before too). But that is just me. I am using debt leverage to build a business that I believe in. Everyone's risk tolerance and life goals are different.

Also, $100K would not be enough for me to live the lifestyle that I want.
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Old 01-09-2012, 11:33 AM
 
6,014 posts, read 6,515,432 times
Reputation: 8304
Not to be too critical -- because I live in a high expense area, also, and don't know your monthly bills, obligations and expenses

1) I'm not clear what amount of money you say you're barely getting by on.
2) If a person is barely getting by on 100-K, without knowing more -- I would say that person COULD certainly lower expenses and live on less...the issue is would it be the KIND of life they want to live, with the amenities they want...(no, it wouldn''t be)

It's rare that a person CAN"T get by with- and on less -- the rub is: are they willing to DO that just to save money, or build an EF, or for whatever reason

Quote:
Idk,I'm just staying afloat on that amount of money.
But I'm in Nj.

Some people are saying cell phones,cable service aren't apart of being middle class.
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Old 01-09-2012, 11:50 AM
 
24,511 posts, read 34,115,918 times
Reputation: 12779
Quote:
Originally Posted by jerseygal4u View Post
Idk,I'm just staying afloat on that amount of money.
But I'm in Nj.

Some people are saying cell phones,cable service aren't apart of being middle class.
NJ is tough. I hear ya. I have a nice six-figure income, and a huge six-figure (non-mortgage) debt. You always feel like you're just making it. But once the debts are paid, it will be all fun and games.
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