I saw an article recently about “How to Gauge Your Middle-Class Status”. I found the whole thing very interesting. In some ways, we measure up --- in some we don’t --- and in some we over-achieve. We’re big fans of Dave Ramsey at our house – and, like him, we don’t strive to be “normal”. Normal in America is broke, living on the edge, paycheck to paycheck. We have no desire to live like that. So, I guess it shouldn’t surprise me when I look at an article like that and we’re not normal.
Here’s a brief run-down of what they looked at:
Income: $51,000 - $123,000 --- yeah, we’re in there somewhere
Housing Cost: House worth $231,000 --- yep, we’re in that range too
Mortgage = $17,600 --- Are you kidding me??? Nope – we’re way under that --- and we’ve only got about 7 years left on our mortgage. No, we didn’t take out this mortgage eons ago. We followed Dave’s advice and only took a 15 year mortgage.
Home Size: 2,300 sq ft --- we’re smaller than that --- but we’re only a two person household. How much space do two people need??
Medical Expenses: $5,100 annually --- we are fortunate – we have excellent insurance, and although we pay a portion of the premium, we’re significantly under on this one too.
Cars: $12,400 annually shelled out. Baby, we are way under that. Mostly because of Dave again. We have no car payment. None. Average value NEW of the car: $45,000. I don’t know what to do with that part. Yeah, sure, when the car was new, it was $45,000 – but 15 minutes after you drive it off of the lot, its value starts dropping like a stone. I don’t know how that figures into anything, really.
College Savings: $4,100 per child. Who are these people kidding?? Really?? I don’t think you can attend community college for a year on that. We’re past that season of life, so we don’t stash money away for this- -- so I really have no comparison point on this one.
Vacations: One week at the beach or other tourist destination --- yeah we take a week -- and then some… Cost: $3,000 ---- What??? On one week at the beach?? What are these people doing??
Retirement Savings: 3.2% of income or $2,600 annually. Nope – we are so not normal on this one either. We save like squirrels. We’re not quite at the 15% that Dave recommends, but we’re creeping up on it quickly.
Everyday Spending: $14,200 for clothes, food, utilities, entertainment, etc. Again, we are way under this one --- probably how we’re able to be so far over on the savings item??
Number of Earners: 2 --- yeah, that’s us.
Hours Worked: 3,747 annually --- Geez, divided by 2 workers in the family – divided again by 50 or so weeks --- that’s about 37 hours a week. Yeah, that’s us, most of the time.
Education: High School diplomas and about 2 years of college. Nope --- we both have degrees that provide us with our jobs/income. We value education and continue our own learning every chance we get.
Household Net Worth: $84,000 --- wow – gotta wonder about this one --- especially if you go back and run the numbers about the value of the house, the college savings, retirement savings, etc. We’re not at all normal on this one --- good thing.
Debt: 18% of disposable income goes toward debt in the “normal” middle class family. They do include the mortgage in that --- which confuses me --- run the numbers again --- average income (take the mean) and the average mortgage payment annually --- it doesn’t come out mathematically. Unless you’re telling me that everyone in America is now listening to Dave Ramsey and has no debt other than their mortgage?? Nah, that wouldn’t be normal.
