Income needed to live middle class lifestyle (Ira: insurance, daycare)
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.
In 2007 while still living in Northport I crunched the numbers and determined that the cost of a reasonable, slightly upper middle class existence, was between $150k and $180k annually.
It was entirely possible to live on something less but at the expense of creature comforts we enjoyed (e.g., DirecTV, high-speed Internet, eating better quality food).
I think people are overestimating these annual figures, especially when you convert it to monthly amounts even with taxes taken out. Wage and Salary Conversion Calculator
$150k is $12,500 per month gross. After fed/state taxes (some even going to retirement funds), say $8k is left , mortgage at $3k, leaving $5k to spend a month. You have groceries, utilities, etc. I don't think adding internet, tv, and eating out once or twice a week is going to cut into that figure much at all.
Even at $125k annual, $10.4k per month gross, you have maybe $7k left after fed/state taxes, mortgage of $3k, leaving $4k to spend a month.
Unless you have student loans and other debt like a large car lease, it's not hard to do it on $125k. Am I missing any large monthly payments?
I think people are overestimating these annual figures, especially when you convert it to monthly amounts even with taxes taken out. Wage and Salary Conversion Calculator
$150k is $12,500 per month gross. After fed/state taxes (some even going to retirement funds), say $8k is left , mortgage at $3k, leaving $5k to spend a month. You have groceries, utilities, etc. I don't think adding internet, tv, and eating out once or twice a week is going to cut into that figure much at all.
Even at $125k annual, $10.4k per month gross, you have maybe $7k left after fed/state taxes, mortgage of $3k, leaving $4k to spend a month.
Unless you have student loans and other debt like a large car lease, it's not hard to do it on $125k. Am I missing any large monthly payments?
Childcare will take a huge bite out of that $4K, nannies are what- about $2 grand a month? Daycare ~$1500? It's tough to live comfortably on LI at $125K, just my opinion.
The best is you work your balls off to make a better life and then you get slammed with the alternative minimum tax!!! 150 to 200 depending on the area to live comfortable but by no means rich.
Amen to this. hubby and I have busted our tails to "make it" and get slammed with AMT. I don't expect a pity party because we do live comfortably but we are NOT rich. If only we had a yacht to get a tax break.
^ we got hit with AMT this year... took away $1300 in refunds.
And you were right about daycare which I had just mentioned in a previous post. You'd likely want to reduce your monthly mortgage from $3k - meaning a smaller house for $125k/yr.
A quality 1200 sq. ft. home, on the corner, next to the gas station. Or maybe a former rental. The dead give-away is the separate basement entrance.
We shopped around for 6 months and found something completely the opposite of that in Suffolk. Except on a corner, but in a very nice residential area.
I wonder sometimes if people have even ventured past Deer Park Avenue on this board. Heck even 110!
First of all, I enjoy seeing how so far, everybody has been polite and non-judgmental, even though this is a somewhat controversial topic. I wish all city-data threads could be like this.
Secondly, this thread proves my point that everybody has a different idea as to what is middle class. Most likely, I think that people consider the lifestyle that they grew up with to be middle class. People on this board seem to be giving various 6 digit incomes as the minimum for middle class. However, my colleagues at work who would make salaries similar to mine (more than $88,000 but less than $98,000) definitely consider themselves to be middle class. And no, most of their spouses do not work. And yes, many of them do have kids. Though I am guessing that some of the people on this board might not consider my lifestyle and their lifestyles to be middle class.
Keep in mind that if your spouse does not work, you do not need to pay for daycare, or for a nanny, or for any of those other expenses that are being mentioned in this thread. Those of us who work on Long Island don't have to pay LIRR fares. Those of us who have workplaces with casual dress codes don't need to spend money on expensive clothes, and don't need to spend money on dry cleaning. Also, I live in a 2 bedroom condo (yes, I realize that when we have children we will likely need more space and need to move), which I am very happy living in, but many others would probably not be. My colleagues who have houses mostly mow their own lawn (since they have at least some free time) so don't need to pay landscapers. And none of us have to pay the AMT!
On the other hand, many people who commute from Long Island to the city consider themselves "successful" or "middle class" or better, but have lives that consist of nothing but working, commuting, and sleeping. They seem happy with that lifestyle, which is good for them. But I would not ever consider myself middle class if I had a life of nothing but working, commuting, and sleeping, no matter how high my income was. I would consider that lifestyle to be barely getting by. Similarly, many people who relocate to lower cost of living areas but away from family seem happy with their lifestyle. But again, for me, I would not consider myself middle class if I had to relocate away from the rest of my family. Again, I would consider myself to be barely getting by, since I would not have the lifestyle that I desire.
My point is that 2 people can have identical incomes and identical lifestyles, but due to personal preferences, one might consider himself/herself middle class, and the other might not.
Obviously school districts are another factor. People have very wide variations as to what school districts they consider acceptable for their children.
Childcare will take a huge bite out of that $4K, nannies are what- about $2 grand a month? Daycare ~$1500? It's tough to live comfortably on LI at $125K, just my opinion.
very true, however with daycare costs at least there's a light at the end of the tunnel. Unless you keep popping out kids.
It absolutely matters how you grew up to how you view all aspects of life. Many people aren't sociable and don't leave the house unless it's necessary. Some eat out often. Some try to nickel and dime the electric they use while others only turn on every light and don't worry over an extra 20-30/month. Vices vary from one to the other. IMO 5-10k a year in vacation is necessary for my happiness. Others are happy with a couple weekends in the Poconos. Everyone is different but, true middle class is way above 90k for anyone raising a family in a home purchased in last 14 years
And, as I said, if only one parent is working, then you have zero daycare and/or nanny costs.
thank you for pointing out the obvious.
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.
