According to a 2012 study, our family is barely over the middle class level for income, and last year we would have been considered in the poor class. I knew we weren't rich, but I didn't realize that we were so close to what is considerd poor. I think that we are managing pretty well for being "amost" poor, lol.
According to the study, $51,000 to $123,000 is considered middle class.
Since I've been laid off and it's just SO's income, we are right on that line you give. However, I really don't think it's as black and white as just looking at one's income. For me, income versus expenses is a more accurate formula. Although we may not make as much $ as our neighbors, who both work, we have more $ than they do. See - our house is paid off, along with our 3 vehicles. And, they aren't old beaters either. They are all less than 5 years old. We don't own credit cards. And, we have no student loan debt. All we really have in expenses are every day living expenses one can't get away from, groceries, utilities, insurance, property tax, etc.
Our neighbors are young with 2 kids under 5 years of age. Both work. They have a huge house payment, 2 vehicle payments and student loan debt. Not sure about their credit cards and such. But, just the above expenses are way more than we are paying out.
So, you see...it can't be just about income. People ask me all the time, how we live on what we make. Why aren't we on PA or anything. Because we don't need it. We wouldn't even qualify due to all our assets anyway. But, because we don't have all the expenses that most people have, our income goes way further.
So, while our income says we are right at the line between poor and middle class, our assests and lack of expenses makes that income worth more, placing us well above that line.
Isn't it shocking how much is considered poor and middle class? I think most people would consider $100,000 more than middle class.
The median income for 2012 is $49,434, so that would mean that half our population is in the lower socioeconomic class. Maybe the study is meant to show what people believe is middle class? I think it's all in perception anyway. You can make tons of money but if you're drowning in debt you're still going to feel the pinch.
I think it all depends on where you live as well.....$40,000 per year will get you a hell of a lot farther in say N. Carolina as opposed to living in NYC....
do the best you can with what you have! :)
Do you have a link to the study? I'm curious if the "poverty level" changes depending on how many dependants are in the home? We have 5 children and are above that, but I'm not exactly sure where we fall, somewhere in the $60,000's. You would think they would factor in how many children, and if there are any special needs, medical needs. I don't care how much you make, if you have a kid with a disease, it takes a financial toll.
That being said, I don't feel even close to poor. If you look at what most people live with in other countries, I'm downright WEALTHY! I never want for food, have two working (sometimes) cars, a home, healthy children, plenty of clothes (even if they are bargain basement). And we give at least 10% to charity.
I was telling my DH about this post yesterday, and he told me something interesting. He listens to a lot of talk radio while he's driving (he drives a lot for work) He said that those that fall in the "middle class" of income, almost all complain about not having enough! I was floored!
We have neighbors who have a house, several cars, a hot tub three sheds, five dogs, 3 cats, a grand piano (not sure anyone there plays?) and yet, I think they're loosing their house. It's really more about living WITHIN your means.
The link is in the replies on the first page, and the study was for a 2 parent, 2 children home. And I agree, it is about living within your means!
Quoting Bekahsue5:Do you have a link to the study? I'm curious if the "poverty level" changes depending on how many dependants are in the home? We have 5 children and are above that, but I'm not exactly sure where we fall, somewhere in the $60,000's. You would think they would factor in how many children, and if there are any special needs, medical needs. I don't care how much you make, if you have a kid with a disease, it takes a financial toll.
That being said, I don't feel even close to poor. If you look at what most people live with in other countries, I'm downright WEALTHY! I never want for food, have two working (sometimes) cars, a home, healthy children, plenty of clothes (even if they are bargain basement). And we give at least 10% to charity.
I was telling my DH about this post yesterday, and he told me something interesting. He listens to a lot of talk radio while he's driving (he drives a lot for work) He said that those that fall in the "middle class" of income, almost all complain about not having enough! I was floored!
We have neighbors who have a house, several cars, a hot tub three sheds, five dogs, 3 cats, a grand piano (not sure anyone there plays?) and yet, I think they're loosing their house. It's really more about living WITHIN your means.
In most families, both of the parents work, so that would mean double the $49K per year. Which would put the average 2 income household right in the middle of the middle class bracket.
Quoting lizfnf:The median income for 2012 is $49,434, so that would mean that half our population is in the lower socioeconomic class. Maybe the study is meant to show what people believe is middle class? I think it's all in perception anyway. You can make tons of money but if you're drowning in debt you're still going to feel the pinch.
our family is poor. right now we don't qualify for food stamps but we don't make enough to actually eat. right now we have nothing in our cabinet, my dd is whining that shes hungry and i have no freakin clue what to make for dinner tonight. Ironically my dh works as a civilian for the DoD.
in this area that is the income if both parents work
Quoting shmily13:In most families, both of the parents work, so that would mean double the $49K per year. Which would put the average 2 income household right in the middle of the middle class bracket.
Quoting lizfnf:The median income for 2012 is $49,434, so that would mean that half our population is in the lower socioeconomic class. Maybe the study is meant to show what people believe is middle class? I think it's all in perception anyway. You can make tons of money but if you're drowning in debt you're still going to feel the pinch.
Who is more Frugal?
- shmily13
on Sep. 8, 2012 at 2:15 PM