stepford
Thinks s/he gets paid by the post
Do you factor in sunk costs? We've paid off our mortgage in High COL southern California and can live quite comfortably on $50-60K. Add in a mortgage and it can go up considerably.
There's that home improvement show in Laurel Mississippi. I'm not going to move there, but man they can get some decent real estate
That thread was about spending.In contrast to the how low can you go thread, I've started this thread.
That refers to income.Poverty level in the US is $17,420 for a household of two. I don't see that as something to shoot for.
That refers to income.Now the question is, what is middle class? I'm going to suggest $40k to $90k as my criteria. That pretty well covers the median household income of $68K.
That sounds like spending.We are living on $55k.
We spend $20K just on property taxes and insurance.
Where you live is a huge variable for this discussion. Nobody is going to live middle class in Manhattan, Honolulu or San Francisco on $40K.
I thought I did that with $40K to $90k, what you buy with that could go in every direction.
It really depends on where you live, if you have a mortgage, what your taxes are, how many kids you have, etc.
As noted, median household income is around 68K so 40-90K is hardly that high. Plenty of people around here pay 10K or more in property taxes alone on a modest home. You can't do that on a 40K income. It's even a little tight on 90K.
Add in 2 or 3 kids with all of the associated costs, a mortgage, maybe a car payment or two, a vacation or two each year, healthcare costs, perhaps still dealing with student loans, and there's no way you're getting by on 50K.
That thread was about spending.
That refers to income.
That refers to income.
That sounds like spending.
You have to understand that income and spending are two different things. According to the Pew linked posted earlier, I'm upper class in my area with a 6 figure income. Yet, my barebones spending is about $13,000/yr to get all the required bills paid, food on the table and such, and then add on about $2000/yr or less in discretionary spending in recent years for entertainment, buying stuff I don't need, etc. So, that's $15,000 spending total. I'm still working, so I need to pay taxes, and add in a buffer to address larger long term expenses, and I could live a middle class lifestyle on about $30,000/yr income over the long term assuming I'm still paying the same amount for healthcare insurance as I am now through my current employer. I don't really need to add anymore to my retirement accounts at this point.
I totally didn't get that from your question. That makes a big difference since you may be debt-free, kids grown and on their own, etc. I'm still working so I can't speak to that question at all yet.OH! I thought everyone was retired living on their nest egg.
This is a common problem when they set anything based on income and use the same number nationwide. Whether it's taxes or SS or whatever. It makes a huge difference where you live.What I find interesting is, regardless of the large variation in cost of living and incomes across the land, there seems to be one "poverty level".
I totally didn't get that from your question. That makes a big difference since you may be debt-free, kids grown and on their own, etc. I'm still working so I can't speak to that question at all yet.
Maybe you bailed out before reading the rest of my comment because I gave my total actual spending as well and about how much income I think I would need to live a middle class lifestyle over the long term - $30K/yr. But if you are asking about retirement, $25K/yr spending would be enough for my single middle class lifestyle (that includes modest discretionary), but I have a much more generous FIRE budget planned.OH! I thought everyone was retired living on their nest egg. My mistake, I wanted it to be spending after retirement, but not a bare bones, I can't get a $4 shake at Chick-fil-A, more of a middle class retirement.
I'll try to be more clear on my next thread.
... Now the question is, what is middle class?...
My definition:
Middle Class is when you have to pay attention to what you're spending on 'wants' so as not to overspend. Middle class is when you look at the prices on a menu and order accordingly.
In contrast to the how low can you go thread, I've started this thread. Poverty level in the US is $17,420 for a household of two. I don't see that as something to shoot for.
Now the question is, what is middle class? I'm going to suggest $40k to $90k as my criteria. That pretty well covers the median household income of $68K. Then do you own your house? I say yes, if not, you might need a little more. The next biggy is location, I realize that will be a big factor.
We are living on $55k.
You really need to define "normal middle class lifestyle". That can mean very different things to different people. Also, where in the country can make a huge difference.