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I am single and live a middle class life, making about the same income. You do have to choose your priorities. That has always been the case.
It's significantly different when you have a family. I used to bank 1/3rd to 1/2 of my paycheck when I was single too, & that was after I bought my needs AND my wants. But who wants to be single forever?
I don't really consider myself middle class. I consider myself white collar but in the same financial position as a moderate level working class person. I'm just more educated and my job is more cushy (as long as I have it for now).
I can't afford what the "middle class" is supposed to. I can't put away enough to have a secure retirement or send my kid to college. My kid will have to take out what will likely be $35-40K per year loans (if the inflation rate of college costs continues that's what it'll be in 20 years).
I should be putting away at least 20% from all financial advice I get - preferably more. I do save 8-12% a year of my net take-home; that is pretty much all I can do. I take heart in that, since from what I understand, is a savings rate damn well better than most of my peers. Still, it is not "middle" class. To have everything in the article would require a household income of at least $75-80K, give or take based on regional CoL. At least. $100K is needed to really round it out. I could cut every tiny luxury I spend on - cable TV, smartphones, etc... and perhaps push it to about 15-16%. But my wife uses her smartphone for practically everything in her daily life, from tracking her workouts, to getting recipes to listening to music... and I like watching sports, so I keep those things because cutting them would only make us more unhappy and it would not move the needle close enough to where it should be anyway.
Last edited by redguard57; 05-03-2016 at 03:00 PM..
I get upset when I have to pay an unwanted medical expense or taxes, but I'm able to. It is a minor inconvenience for me and I tie up money between my 401K, ROTH 401K, HSA, and personal savings.
If I make a purchase for my vehicle or say have to go to the dentist, I'm good. I'm at an income where it is whether or not I want to spend money on something because I know money is fleeting and is a tool and should be used this way.
It's so sad when I hear stats about people not having a personal savings account or a retirement account or a major life event would be catastrophic to them.
It's significantly different when you have a family. I used to bank 1/3rd to 1/2 of my paycheck when I was single too, & that was after I bought my needs AND my wants. But who wants to be single forever?
I don't really consider myself middle class. I consider myself white collar but in the same financial position as a moderate level working class person. I'm just more educated and my job is more cushy (as long as I have it for now).
I can't afford what the "middle class" is supposed to. I can't put away enough to have a secure retirement or send my kid to college. My kid will have to take out what will likely be $35-40K per year loans (if the inflation rate of college costs continues that's what it'll be in 20 years).
I should be putting away at least 20% from all financial advice I get - preferably more. I do save 8-12% a year of my net take-home; that is pretty much all I can do. I take heart in that, since from what I understand, is a savings rate damn well better than most of my peers. Still, it is not "middle" class. To have everything in the article would require a household income of at least $75-80K, give or take based on regional CoL. At least. $100K is needed to really round it out. I could cut every tiny luxury I spend on - cable TV, smartphones, etc... and perhaps push it to about 15-16%. But my wife uses her smartphone for practically everything in her daily life, from tracking her workouts, to getting recipes to listening to music... and I like watching sports, so I keep those things because cutting them would only make us more unhappy and it would not move the needle close enough to where it should be anyway.
I'm divorced with two children; I understand what it is to support a family, having spent the last 9 years doing just that.
Income of 100k is middle class; I make close to the national median.
As a Boomer I have to ask: What was a vacation? We never took one. Ever. My aunt and uncle would pile their kids onto and into a Chevy station wagon every summer and drive from PA to Texas for two weeks every summer.
As a married couple Mrs. NBP and I never took a vacation until a few years ago, although we would sometimes take the kids on day trips to Ocean City or somewhere else. Christmas was on the road the day after going to the grandparents. After several years of staying at the house she and I would stay at a motel while the kids stayed at the house.
We now go over for a week in the early summer but even then I'm at a convention and in meetings for most of the week. We do try to get away as a couple once or twice a year to a cabin for 2 or 3 days.
The new car one is a little misleading. The average age of vehicles on the road is 11-12 years, for a reason. Modern vehicles simply last longer. Even adjusted for inflation, they may have been cheaper 30-40 years ago- but it getting 100,000mi out of one would be a HUGE milestone. Today, that's just getting broken in.
The new car one is a little misleading. The average age of vehicles on the road is 11-12 years, for a reason. Modern vehicles simply last longer. Even adjusted for inflation, they may have been cheaper 30-40 years ago- but it getting 100,000mi out of one would be a HUGE milestone. Today, that's just getting broken in.
What road are you driving on? The average age of cars where I live is significantlyficantly less - which explains why many are in debt to be heir eyeballs
The new car one is a little misleading. The average age of vehicles on the road is 11-12 years, for a reason. Modern vehicles simply last longer. Even adjusted for inflation, they may have been cheaper 30-40 years ago- but it getting 100,000mi out of one would be a HUGE milestone. Today, that's just getting broken in.
The average longevity of a car is 11 to 12 years before it is crushed. The median age car is probably more like 4 or 5. In my part of the country, road salt corrosion makes a 12 year old car really iffy.
As a Boomer I have to ask: What was a vacation? We never took one. Ever. My aunt and uncle would pile their kids onto and into a Chevy station wagon every summer and drive from PA to Texas for two weeks every summer.
As a married couple Mrs. NBP and I never took a vacation until a few years ago, although we would sometimes take the kids on day trips to Ocean City or somewhere else. Christmas was on the road the day after going to the grandparents. After several years of staying at the house she and I would stay at a motel while the kids stayed at the house.
We now go over for a week in the early summer but even then I'm at a convention and in meetings for most of the week. We do try to get away as a couple once or twice a year to a cabin for 2 or 3 days.
This was pretty much my childhood in the 80s, regarding vacations. I think we went on 4-5 vacations my entire childhood. I felt like we were middle class. Probably lower middle class, but we didn't know it. I definitely think a lot of people have expectations that are out of touch with reality.
You do understand what the term median means correct?
Yes, and you understand what the term middle class means, correct?
Not sure why I feel compelled to say more, but when someone quotes the $50K median household income as representative of the "middle class," it has to be called out. The middle income of all households in the country, representing all income classes, has little to do with a true discussion of what the middle class can afford. Although the numbers vary, many sources and economists consider middle class to be somewhere between roughly $50K-$140k. I do not have the specific figure, but if we took the median income of households earning in this range, I suspect it will be more than $50K. Regardless, the middle class is not representative of the first household to earn just enough to be labelled within the class, nor should that particular family's spending ability be representative of everyone within the class.
For the bulk of the middle class, what makes paying the bills truly tough seems, more often than not, lifestyle choices (in terms of opportunity cost) and not a true hardship. Poor spending decisions compound on so many households, but it is easier to blame outside factors and play the victim. No, that's not to say everyone is a doing this, but articles such as the one posted sure help those folks do so.
Last edited by Checkered24; 05-03-2016 at 08:44 PM..
Student loans: this is a serious problem I agree with.
If you go to state university within your own state, tuition is not that expensive. This is especially the case if you work part-time throughout school and/or received some grants or scholarship.
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