I ran across this interesting article about how to tell if you are middle class. Here is the link:
It's an interesting read and I wonder what you think about it.
Here is the run down:
*Middle class = $50,000 to $123,000 a year for family of four
*Home is worth $231,000, and makes$17,600 in mortgage payments
* Spends $12,400 per year on two medium-sized sedans
*Saves $4,100 for college expenses for two kids
*Saves $2,600 per year for retirement
*Spends $14,200 a year on living expenses
*net worth of about $84,00
I thought this was interesting:
"A median-income family that saved 3.2 percent of its income—roughly equivalent to the national saving rate—would sock away nearly $2,600 per year for retirement. Of course many families don't hit even that modest goal, and stock-market losses over the last several years have further shrunk the national nest egg."
I was flabbergasted at the $2,600 a year figure. That is so low.
I will say that we are squarely in the middle class income area, have two kids and seem like the "typical" demographic they are going for.
So here's how we stack up to average:
Our house is 1443 square feet and cost $154,000 (below average),we have no car payment at the moment (way below average), we put aside about $9,000 for college for our two kids (above average), no annual vacation, and we save about $20,000 a year for retirement in 401ks and IRAs. We both work, although I freelance so we don't have to pay for daycare.
How do you stack up?