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Question: Is this to assume that you would like to continue to save at the same rate and keep the $$ from assets as is. Or would you be putting that money to a down payment and then get a mortgage payment?
In either case....
Seattle - Those funds will be a good down payment and leave money in the bank, however the monthly payments would likely eat into your current annual savings making you live a relative 'pay check to pay check' life style, which many people do here. I know plenty of couples, without kids, making 100-125k and they do not live extravagant life styles, but includes a vacation every 2 years and ret. savings - not enough to save for home purchase.
Everett (30 min north of Seattle) Middle class = house with manageable payment (if using about 1/2 or more of 250K assets), money for ret./emergency, can budget to plan for vacations. etc.
Question: Is this to assume that you would like to continue to save at the same rate and keep the $$ from assets as is. Or would you be putting that money to a down payment and then get a mortgage payment?
In either case....
Seattle - Those funds will be a good down payment and leave money in the bank, however the monthly payments would likely eat into your current annual savings making you live a relative 'pay check to pay check' life style, which many people do here. I know plenty of couples, without kids, making 100-125k and they do not live extravagant life styles, but includes a vacation every 2 years and ret. savings - not enough to save for home purchase.
Everett (30 min north of Seattle) Middle class = house with manageable payment (if using about 1/2 or more of 250K assets), money for ret./emergency, can budget to plan for vacations. etc.
We would continue to save at the same rate. The goal being to buy a condo or a house cash, without having to take a mortgage. (or, if necessary, a mortgage as small as possible).
Regarding retirement savings: where we live, it is taken out automatically before you get your bruto salary. So, the combined income is $ 80,000 per year before taxes but after the pension contributions.
It's a low income for my city in Orange County, CA (average income $144K, median $128K). What would concern me most is that this couple is apparently renting, because if they owned a house their net worth would be higher than $250K. And with that income, it would be almost impossible for them to afford to buy a house today. Even a one-bedroom apartment would be taking up a big percentage of their income at approximately $2000/month.
However, if they had bought a house, say, 12 years ago, they would be in decent shape with that income, no debts, and frugal habits.
A couple in their late 30ies and early 40ies. No children, pets or dependents.
Combined income before taxes: $ 80,000 / year
Combined net worth (all savings, assets and property, but not including retirement savings): $ 250,000
Debts: no debts. No student debts, no mortgage.
Spending habits/lifestyle: pretty frugal. Saving around $ 20,000 per year on average. (not including retirement savings).
Where would this couple stand in your area (or another area you're familiar with) ? Lower, working, middle, upper-middle or upper class?
Please make sure to specify the area you're talking about, as I'm sure there would be big differences between, say, San Francisco and Greenville, Mississippi.
They would be intergenerationally working poor to working class in NYC but be viewed as different by their class peers due to not having debt and in terms of being frugal. I'm in this category but way younger and higher NW.
They would be intergenerationally working poor to working class in NYC but be viewed as different by their class peers due to not having debt and in terms of being frugal. I'm in this category but way younger and higher NW.
What do you mean by "intergenerationally working poor to working class"?
What do you mean by "intergenerationally working poor to working class"?
This means people in low paid jobs, but who try to have steady work (not lazy or on welfare), and who come from families that have done so and will do the same in perpetuity.
This means people in low paid jobs, but who try to have steady work (not lazy or on welfare), and who come from families that have done so and will do the same in perpetuity.
Ah ok, I see. Financially modest, but hard-working.
It's been quite interesting reading all the answers.
In reality, we are pretty well-off in our country (Israel), but we started from scratch. Hubby is a civil engineer with a good, very steady job. I'm an immigrant in the country, and work as a teacher. Salaries are lower here, and life is more expensive, but the overall quality of life (weather, food, mentality, culture, etc) makes up for it.
Regarding your situation, Fatsquirrel, if your net worth is higher than $ 250,000 and you are in your 30ies (or younger), you're doing really well. Even in NYC. $ 250,000 would buy you a nice 1-bedroom apartment in a doorman building in Forest Hills, Queens, which is a great neighborhood.
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