What's "Middle Class"? What I earn!

[kork13]

How Do You Define Middle Class? People Who Make What I Do - WSJ.com

(WSJ.com excerpt)
Who is a middle-income American? For much of the nation, the answer is simple: it’s me, and perhaps people who earn less than I do.
....
Americans have a strong inclination to consider people in their own income brackets to be middle-income. Among households earning $40,000 to $50,000, 48% put the middle-income marker at $50,000 and 9% said it’s below that. Half of all households earning $50,000 to $75,000 said their income bracket counted as middle-income; a third of those households earning $50,000 to $75,000 put the middle-income marker below them.

Among households earning $75,000 to $100,000 a year, 39% said being middle-income means earning within their own income bracket. More than half of that group put the marker below their own incomes.

Interesting article... Just curious what you all think about it. I make ~$80k, but I'd put "middle income" around $50k, perhaps just lower.

Perspective most definitely makes a difference here... If this poll shows nothing else, it clearly demonstrates that fact.

[Reggie]

I earn 125 or so. I'd put middle income at 75k or higher.

[disneysteve]

I think it partly depends on where you live. In the town where I live, the median income is about $90,000. I work in the poorest city in America where the median income is $18,000. How people in those two places answer the question is bound to be very different.

[stoney508]

I would say between 50 and 80 you can live on one spouse income if need be. I think its the stigma that middle class is a modest house, 2 cars, 2.5 kids, 1.5 pets, 1 family vacation a yr. Now this is attainable on less and more money depending on where you live as well as things changing between these settings in NY it may be a loft instead of house or condo instead of house and 2 cars.

I agree you can have this with less and I agree you can with more but there are a lot of people that strive to have this kind of life and sometimes cannot without being in high amounts of debt. And then there are people that try to expand on this "keeping up with the Jones's" or whatever that saying is.

[HereForTheCheese]

Most people living "the american nightmare" who are earning in the double digits while also having 2 cars, a huge mortgage, and credit card debt would say they are "middle class". It's the fact that so many people are struggling that lends them to believe they are suffering with everyone else.

[stoney508]

Most people living "the american nightmare" who are earning in the double digits while also having 2 cars, a huge mortgage, and credit card debt would say they are "middle class". It's the fact that so many people are struggling that lends them to believe they are suffering with everyone else.

I believe that is the problem when people with 6 figure household incomes with high amounts of debt (in certain areas) call themselves "middle class". I mean I make what my parents make at age 26 years and they are in there 50's. I would consider a household income to be about what they make where I live (rural wisconsin). I had what I needed growing up and we took one family vacation ever I did not have my college paid for and my parents lived with used cars until recently and not a ton left on there morgage. They worked up to these incomes and they were frugal because they had to be but the one thing they didnt do was prepare for retirement which I may have some questions in there behalf in other threads.

What I describe I think is what middle class is not the 6 figure incomes saddled with debt.

[rutgers07]

I only make about 34k/year but that's certainly "middle class" where I live. Houses can easily be had (decent ones at that) for around 100k. I'm living comfortably as a single guy on my income.

[HereForTheCheese]

I only make about 34k/year but that's certainly "middle class" where I live. Houses can easily be had (decent ones at that) for around 100k. I'm living comfortably as a single guy on my income.

Yes, it's all about not falling for the trap of consumerism. I supported my family of 3 in a high cost of living city on $65k for 2 years before my wife started earning. The entire time we had to keep reminding ourselves "We're happy with what we have right?", so when she starting bringing in cash we were able to keep our lifestyles from inflating.

[JoeP]

Why are these calculations always tied to income? As other mentioned, the cost of living is a major factor, but also the family's financial prowess. A family earning $100k can easily be buried in debt (listen to Dave Ramsey for lots of examples) while a family earning $60k with no debt and modest expenses can be in far better shape.

I guess I get a little irritated with the thinking that middle class means you've somehow made it and live on Easy Street, while those below middle class scrounge for food, can't send their kids to college, and line their shoes with cardboard.

[bigdaddybus]

CNN had an interesting article this morning stating that "The rich" (those in the top 25% of US household incomes) live longer than "the poor" (those making in the bottom 25% of US household income.

http://money.cnn.com/2013/09/25/news/economy/income-inequality/index.html?iid=HP_LN

So that got me wondering what exactly are those numbers?

http://www.mybudget360.com/what-is-the-median-household-income-in-the-us/

$24,999 or less household income is the bottomm 25% = Poor
$25,000 to $84999 is the middle 50% = middle class
$85,000 or more is the top 25% = Rich

Agree?

What I find interesting is that a family of 4 making up to $87,000 will receive subsidies helping to pay for the ACA. Why would "The rich" need a subsidy?

[disneysteve]

$85,000 or more is the top 25% = Rich

Agree?

What I find interesting is that a family of 4 making up to $87,000 will receive subsidies helping to pay for the ACA. Why would "The rich" need a subsidy?

I don't agree at all. I make more than 85K and I definitely don't consider myself rich - and we are only a family of 3. I'm not sure we could manage to pay full price for health insurance if my employer didn't cover part of the tab (and we have pretty crappy coverage). A family of 4 making 85K definitely couldn't.

Again, I'd say it party depends on where you live. Around here (southern NJ), 85K is definitely not rich. In some rural area in a state with low taxes, it might go a lot farther.

[bigdaddybus]

I have been hearing alot lately that average income has returned to 1989 levels. Inflation sure hasnt, so I plugged the numbers I listed above into an inflation calculator and came up with the following.

$25,000 in 1989 is worth $47,152 today.
$85,000 in 1989 is worth $160,318 today.

I think these numbers are a better reflection of what it takes to be "middle class" these days.

for a family of 4, below $50,000 a year is hurting, $50,000-$160,000 is middle class, and over is doing pretty good for themselves.

thoughts?

[disneysteve]

for a family of 4, below $50,000 a year is hurting, $50,000-$160,000 is middle class, and over is doing pretty good for themselves.

thoughts?

I think that's reasonable.

[jIM_Ohio]

I think it partly depends on where you live. In the town where I live, the median income is about $90,000. I work in the poorest city in America where the median income is $18,000. How people in those two places answer the question is bound to be very different.

I second this, it is less based on income and more based on location. A family making $90k in Boston is not the same as a family making $90k in Cincinnati suburbs.

75% of country earns less than $40k per year according to IRS, so $40k is low end of the middle. Upper end to me is about $120k because those people have same job as me.

One other issue, a 25 year old making $50k is much different than a 65 year old making $50k. The expenses are different, and middle class has more to do with disposable income than income itself.

[JoeP]

I second this, it is less based on income and more based on location. A family making $90k in Boston is not the same as a family making $90k in Cincinnati suburbs.

75% of country earns less than $40k per year according to IRS, so $40k is low end of the middle. Upper end to me is about $120k because those people have same job as me.

One other issue, a 25 year old making $50k is much different than a 65 year old making $50k. The expenses are different, and middle class has more to do with disposable income than income itself.

Exactly. Some people (and even politicians!) get all worked up with the concept of middle class, thinking that those 75% who make less than $40k live right next door to them and have the same expense load.

People do live in rural areas without high property and school taxes, and get by just fine being in that 75% category.