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I would say you more of frugal working class person like me. I bet you do without buying a new car every 3 years. And you don't take those $10K (or even $5K) vacation each year.
Sure you can live a decent like but don't have access to luxury many people take for granted. If I didn't save for retirement or care about getting into debt, I would be living a MUCH nicer lifestyle in the middle class. Unfortunately, I can't afford it.
actually I am quite frugal and dont mind it, but I also do not mind spending money if I need to as well. 2 years ago in 2009 I spent almost 30,000 dollars on a 2 week vacation into Disney World. my daughter loved it and we had loads of fun and have lots of memories and pictures as well. it might have been alot of money to spend on a vacation, but I consider it money well spent.
60 K a MONTH off 4 million? Tell me who you get that figure? Bernie Matoff??? I have about 4 million and cant see anyway that kind of money off 4 million.
You're right. That $60k/month is my total expected income that includes another source of income that I left out.
The $4million should provide about $20k to $30k per month. This includes drawing part of it from the principle itself.
The OP has defined a minimum standard of luxury and comfort that is way beyond the dreams of at least half the "middle-class" population. Including items that most people don't even desire, and wouldn't buy even if they could afford them. (Smartphones? $10K vacations? New car every 3 years? Mcmansion?) And then added that you have to have double the median income to achieve it.
What is novel about that idea?
By the way, just how do you define "1-2 years spending money" for a person who pathologically covets every single upgrade of electronic gewgaws that comes along, as one of their top six lifestlye priorities? Put in a standing order at Best Buy: "Ship me one of everything, top of the line, every two years".
Completely agree.
We are at about 115,000 right now (will be in the South very soon) with one of us working only part-time. We will get to about 140,000-150,000 when I get my full-time job back (for security reasons, as my husband's job can be fickle, otherwise I would not bother).
I hate gadgets with a passion and always make a point of making the necessary old ones work as long as I can possibly get away with. I also hate the idea of constantly buying a brand new, shiny car when the "loyal, trusted old horse" serves your needs just fine. I've been driving an old Hyunday that I paid 7000 dollars cash for three years ago and I have zipo desire to change my car until I see it literally run into the ground.
I love the way it takes me from A to B without asking for "sweat and blood" in return. I also love the way I have no car loan. My husband's is a tad nicer, but still not brand new, still paid off, and he has no intention of changing it any time soon. We LOVE our cars and all of their imperfections.
Changing cars every 3 years and constantly buying the latest gadgets are not signs of a "good life". They are rather signs of the mental illness of our times.
Being able to put kids through university and doing same travels/vacation - I can understand the need. However, even these are questionable when you place them under rigorous scrutiny, free of cultural conditioning.
A vacation DOES NOT have to cost 10,000 dollars, even abroad. We travel to Europe about every two years and it doesn't cost us this much. Likewise, families can make a decision to reside close to good universities where children will not need boarding expenses. We don't care about the American mindset according to which children should "go AWAY" for college. Children can easily stay at home through college.
I will pay the tuition but will not pay boarding expenses far away from home so the children can get drunk in fraternities every night.
Finally, we live in a house that is much less than what we could qualify for on our family income; and the house IS located in a top school district.
It serves our basic needs. We love it. End of story.
We tend to purchase very high quality products and very few.
I shop at Neiman Marcus as well as Wall Mart.
I do agree that the middle-class lifestyle is increasingly out of reach for more and more people (particularly the "security" aspect: today you may have it but tomorrow it may fly away) but the right mindset CAN help you get more of the REAL good life even today.
Gadgets and shiny, new cars are NOT a prerequisite for the good life and if you cling to this mindset, you will make it very, very hard on yourself in today's day and age.
All of the "wealthy" people(net worth of 1-3 million) that I personally know drive Hondas/Toyotas that are up to 8 years old and don't take expensive vacations.
Net worth of 1-3 million is not wealthy in all areas. In NJ for example, a net worth of 1-3 million is middle class depending on how old you are. Obviously if you're 20, with that net worth, you might be wealthy, but if you're in your 40s, not that wealthy.
A previous poster nailed it: the OP sounds like a spoiled child. What he has described is an upper-middle class lifestyle.
Where would you put an early 40-something with a current $150k annual salary, a paid-off house, and $1.2 million in the bank, rising nicely with every quarterly statement? Fairly well-off, right?
Wanna know how many cell phones my family of four owns? None. (My spouse's phone is provided by his employer.) Wanna know how many $10k vacations we've taken? None. Wanna know how many McMansions we own? None. (Our house is a very average 1600 sq. ft. 3/2 built in 1978.) Wanna know how many cars we own? One, and it's a TWELVE-year-old Honda.
Wanna know how we got where we are? We were realistic about how far our middle-class income would really go and set priorities that did not include spending our money on unecessary crap.
If you want to move from middle-class to poor, just keep on thinking you should spend money on things you don't need with money you don't have to impress people who don't matter.
Last edited by formercalifornian; 04-10-2011 at 01:16 PM..
Net worth of 1-3 million is not wealthy in all areas. In NJ for example, a net worth of 1-3 million is middle class depending on how old you are. Obviously if you're 20, with that net worth, you might be wealthy, but if you're in your 40s, not that wealthy.
Sorry, but earninng, $250k does not buy a 1 million dollar home, and earning $500K does not buy a 3 million dollar one. Especially with kids, college savings, retirement funds, etc etc.
Though your first post does describe upper middle class more so than middle class. We do spend $10K+ on vacations annually, buy new cars every 3 or so years, new computers/gadgets, put kid through private school, save for college, etc., though earn much more than $100K to afford such a lifestyle.
Quote:
Originally Posted by unseengundam
Upper middle class would be whole new definition. For example in Dallas (lower cost of living) I would say that would require $250k-$500k. They would need to able afford low $1-3 million homes. They would be retiring probably rich ($10 millions+ in network).
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Probably true these days.
Having just done my taxes, I see that we made about $80k and yet are barely making ends meet. If prices and taxes went back to what they were a few years ago and our income stayed the same we'd be really comfortable. BTW we had to pay out this year, no refund.
Two raises and a promotion can't keep up with inflation and higher taxes.
Sorry, but earninng, $250k does not buy a 1 million dollar home, and earning $500K does not buy a 3 million dollar one. Especially with kids, college savings, retirement funds, etc etc.
Though your first post does describe upper middle class more so than middle class. We do spend $10K+ on vacations annually, buy new cars every 3 or so years, new computers/gadgets, put kid through private school, save for college, etc., though earn much more than $100K to afford such a lifestyle.
Sure it does. Believe it or not, a lot of it depends on your tax structure and how you spend your money. Sure, if you're upgrading your car every 3 years, sending kids to private school and taking $10,000 vacations, you're taking away from your ability to purchase a million dollar home, but that's a decision you made and there's nothing wrong with that.
With an income of $250,000, hopefully you're paying very little to nothing in taxes, maxing out your 401k to $49k and taking advantage of other tax shelters... doing whatever it takes to get most or all of that $250,000 to hit your pockets. Once you accomplish that, you can easily afford a million dollar home.
Last edited by NJBest; 04-10-2011 at 02:36 PM..
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