Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Even as the economy improves and consumer confidence builds, more than half of Americans -- 52% -- feel like they can afford just the basics, and many with six-figure incomes still feel like they are scraping by. The survey found that 18% of U.S. households earning from $100,000 to $150,000 said they could afford only the basics, with an additional 10% saying they sometimes can't afford even those staples.
"We clearly have what used to be upper middle income -- 75 to 150k -- folks who are saying it just isn't so," says Candace Corlett, the president of WSL/Strategic Retail. "A quarter of them are saying, 'I can barely afford the basics.'" So while six-figure incomes used to represent affluence, that's no longer the case.
Of course, as The Fiscal Times has written before, in many parts of the country, an annual income of $250,000 could easily leave a typical family in the red once all their expenses and taxes are factored in.
That $150,000 is based on average costs for housing, food, clothing, etc. -- perhaps in a place like Peoria, Ill. If it takes that kind of money to have a decent middle-class life in Peoria, what would it take to match it in a major metropolitan area?
We used Bankrate's cost-of-living comparison calculator to measure the difference between Peoria and other cities and chose five of the top 10 U.S. cities (not just the top five) with the highest costs of living, according to Kiplinger. We added Chicago to represent the middle of the country.
The New York City area was the most expensive. Equivalent income: $337,311.87. Percent increase to maintain standard of living: 124.9%.
Honolulu area. Equivalent income: $258,099.19. Percent increase to maintain standard of living: 72.1%.
San Francisco area. Equivalent income: $255,409.43. Percent increase to maintain standard of living: 70.3.%.
San Jose, Calif., area. Equivalent income: $243,260.85. Percent increase to maintain standard of living: 62.2%.
Washington, D.C., area. Equivalent income: $218,127.70. Percent increase to maintain standard of living: 45.4%.
Chicago area. Equivalent income: $182,045.06. Percent increase to maintain standard of living: 21.4%.
The struggling economy has clearly created a recession mindset among consumers. When asked how long the recession will continue, 80% of people say three years or more, Corlett says -- up from 43% back in 2010. "They may not literally mean the government's definition of a recession, but they certainly mean a recessionary mindset for them," Corlett says.
Those financial pressures have made consumers much more cost-conscious. Three-quarters of women now say it's "important to get the lowest price on everything they buy," up 12 percentage points from 2008 and 22 percentage points from 2004. To that end, more are using coupons (68% vs. 61% in 2010) and buying only when items are on sale (45% vs. 38% in 2010).
And, perhaps unsurprisingly, young people -- those from the ages of 18 to 34, who have long been the prized target of marketers -- were more likely than other age groups to say they don't have enough money to cover their basic needs. Nearly a quarter of those surveyed put themselves in that group, compared with 17% of those age 35 to 54 and 13% of people 55 or older.
An IRS breakdown of U.S. incomes, released the day after the consumer survey, provides a reminder of why people, even those with six-figure incomes, may be feeling poorer. For tax year 2010, adjusted gross incomes reported to the IRS rose 5.2% to $8 trillion total -- the first increase after a couple of years of declines. But while tax filers making more than $250,000 saw their total incomes climb almost 14%, those earning from $50,000 to $100,000 gained just 1.5%.
I scoff at the idea of 'scraping by' with the basics.
The idea of what basics are in this country has become a total joke.
People have a way overinflated idea of how their lifestyles should be...and then they whine when they 'barely make it' by their standards.
All those numbers you quote are entirely based on perception.
If you can't 'make it' on 100k, you are a financial idiot and probably a spoiled brat.
I scoff at the idea of 'scraping by' with the basics.
The idea of what basics are in this country has become a total joke.
People have a way overinflated idea of how their lifestyles should be...and then they whine when they 'barely make it' by their standards. All those numbers you quote are entirely based on perception. If you can't 'make it' on 100k, you are a financial idiot and probably a spoiled brat.
I scoff at the idea of 'scraping by' with the basics.
The idea of what basics are in this country has become a total joke.
People have a way overinflated idea of how their lifestyles should be...and then they whine when they 'barely make it' by their standards.
All those numbers you quote are entirely based on perception.
If you can't 'make it' on 100k, you are a financial idiot and probably a spoiled brat.
I like to watch that show "House Hunters" it shows people going around and checking out real estate to buy. I like it cause it shows different budgets and different locations.
Every time they show some place in Texas, I'm just gobsmacked at what you can get for your money.
I think things are all relative. Yes, I 100k sounds like a lot of money and in San Antonio, its a shytload.
Here in So Cal, or Manhattan, it just isn't.... can you live on it... sure, you can live just fine, if you are single or don't own a home.
If you want to live in an area that has decent public school..... well..... I don't think that is gonna happen.
I know a guy and he makes high 70's and his wife made about 45 or so, so they are well over 100k, they bought their home a few yrs ago, paid 650k, had one of those goofy adj rate loans , now the interest rate is changing and they are screwed...
Tons of stories like that, tons of people making over 100k and they are making it sure... but again, no private school, no elaborate vacations etc etc....
A lot of people are just a couple paychecks away from being homeless.... sad yes, but a lot of people are stupid with money, as you've indicated... but it isn't always people being stupid with their money, someone gets sick, can't work, now your income is slashed....
I like to watch that show "House Hunters" it shows people going around and checking out real estate to buy. I like it cause it shows different budgets and different locations.
Every time they show some place in Texas, I'm just gobsmacked at what you can get for your money.
Most of the neighborhoods you find them showing on that show aren't the desirable ones.
You can get a lot of house anywhere if you're not picky.
I know this is better than Cali, but you can pay over $400k in my neighborhood to get 2800 square feet.
I scoff at the idea of 'scraping by' with the basics.
The idea of what basics are in this country has become a total joke.
People have a way overinflated idea of how their lifestyles should be...and then they whine when they 'barely make it' by their standards.
All those numbers you quote are entirely based on perception.
If you can't 'make it' on 100k, you are a financial idiot and probably a spoiled brat.
Thank you, Ma'am. We are quickly becoming an entitlement-minded culture. "Me first." I don't even allow my kids to say those words. And just less than an hour ago I banned the words, "It's not fair." I'm trying to crush this entitlement mindset in my kids before it even begins! Only in America do we see people literally trampled to death en route to great savings just ONE DAY after a national day of Thanksgiving. I cannot comprehend the level of mob-mentality-driven selfishness it takes to accomplish this. But people are more interested in getting a new 80" flatscreen and can't be bothered with a nuisance such as a fellow human being underfoot. Our values are continually turning toward commercial interests. Cable television is considered a basic necessity. People purchase luxury items and vacations on credit because they are not willing to scale back or live within their means. Commercials tell us, "Everyone DESERVES a good car." No, everyone deserves ONLY that for which they have worked and earned.
I'd better stop there. I could go one forever on this topic if I'm not careful.
Thank you, Ma'am. We are quickly becoming an entitlement-minded culture. "Me first." I don't even allow my kids to say those words. And just less than an hour ago I banned the words, "It's not fair." I'm trying to crush this entitlement mindset in my kids before it even begins! Only in America do we see people literally trampled to death en route to great savings just ONE DAY after a national day of Thanksgiving. I cannot comprehend the level of mob-mentality-driven selfishness it takes to accomplish this. But people are more interested in getting a new 80" flatscreen and can't be bothered with a nuisance such as a fellow human being underfoot. Our values are continually turning toward commercial interests. Cable television is considered a basic necessity. People purchase luxury items and vacations on credit because they are not willing to scale back or live within their means. Commercials tell us, "Everyone DESERVES a good car." No, everyone deserves ONLY that for which they have worked and earned.
I'd better stop there. I could go one forever on this topic if I'm not careful.
I completely agree... I've actually made posts like this here before, verbatim.
I see people who are obviously not well off, welfare moms and the like, and they've got the smartphones and TV's and even cars..
We are spoiled as a culture... I think that is on the decline though, as things in the country are shifting and it will be interesting to see what the next 15 to 20 yrs will bring to American society....
I have an economics degree from one of the top private universities on the West Coast. And you?
and yet, you don't seem to understand the concept that you can't say outrageous things like "250K is middle class" when every bit of research out there indicates that you're off by a mile. The only place where you could even argue 100K is middle class is maybe Manhattan, that's about it it
and yet, you don't seem to understand the concept that you can't say outrageous things like "250K is middle class" when every bit of research out there indicates that you're off by a mile. The only place where you could even argue 100K is middle class is maybe Manhattan, that's about it it
And you can't even really say that unless that's really representative of a median income and not just some people who don't have maids and nannies.
Why is this shallow? It is obvious that you 1) very young and 2) have never lived in one of the major metropolitan cities. Yes, you can live a comfortable life on $100k in Wichita, KS or Omaha, NE...but not in San Francisco, LA or NYC.
Median household income in San Francisco - $71,304
Median household income in LA - 55,476
Middle class has somehow come to mean the top 10% of people
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
