Thread: Upper Middle Class

its not one's income that matters most, it's how well one manages their money.

Prince has a good point.

Just curious, doublebase (and good on you for being in the top quintile).

I don't want to ask personal finance questions or ask for specific numbers, but:

What percentage of your net income do you save? (You can include 401K)

spend a third save a third and invest a third of your income/ disposeable income is a good start

technically everyone's financial situation is different..student load debt, mortgage, credit card debt, children now or in the future, current city staying there or maybe move later, industry good now bad later, money in the family, etc.

lots of things to consider today in the US the economic future for many is not that bright. with the end of the dollar hegemony US corps will continually squeeze workers to get as much profit as they can.

on average inflation is about 30% per decade now and will get worst in the future. 100K now will have the same purchasing power as 40K in 20 years, etc.

Originally Posted by Doublebase

According to this I am considered upper-middle class. And in the top 10%. Then why can't I bring myself to shell out 27k for a new car?
Upper middle class - Wikipedia, the free encyclopedia

And the sad part is $27K barely gets one shit for a new car, at least nothing I would want to drive.

The wife and I make more than the top 5% in that chart, but I find it hard to believe we're not 'upper middle class'.

Originally Posted by Big Pimpin

And the sad part is $27K barely gets one shit for a new car, at least nothing I would want to drive.

The wife and I make more than the top 5% in that chart, but I find it hard to believe we're not 'upper middle class'.

I should have been more specific. A used car that is new to me. I like Lexus's but won't the price for a new one. I pick them up when they are 2 years old with like 30K on them. Well at least that is what I did with my wife's SUV. The car still runs great with 90K on it. No problems at all. I have had my Mazdaspeed protege now since I was 20 years old. I'm 29 now. It has 130K on it and the clutch and timing belt need to be changed. I have 2 kids so it's time to upgrade. I like the Lexus ES350. But for that price I could buy a turbo charged hyundai sonata brand new. I just don't know about hyundai. They def stepped their game up in the last 5 years.

Originally Posted by Big Smoothy

Prince has a good point.

Just curious, doublebase (and good on you for being in the top quintile).

I don't want to ask personal finance questions or ask for specific numbers, but:

What percentage of your net income do you save? (You can include 401K)

My wife and I put 6% of our income into 401K's each month. I have not been doing the ROTH's. I have in the past before we had kids but I have not in a few years. I pay down my house a lot since it's our only debt. Usually an extra 1000$/month towards principal. My mortgage is pretty cheap. Only 1100$. We paid it down like 50K then refinanced before we had kids. Shaved like 700$ off of my mortgage each month and lowered the percentage 2 points. Cars are both paid for but as stated I need a new car. Not looking forward to shelling out money for that. I will probably finance it since it is so cheap. I normally pay them off in less then two years though. I can't stand having any debt. Neither my wife or me have ever held a balance on a credit card. My score was 813 when I bought my house 6 years ago. I think it went down a little last time I checked. 780 or so.

Originally Posted by Doublebase

My wife and I put 6% of our income into 401K's each month. I have not been doing the ROTH's. I have in the past before we had kids but I have not in a few years. I pay down my house a lot since it's our only debt. Usually an extra 1000$/month towards principal. My mortgage is pretty cheap. Only 1100$. We paid it down like 50K then refinanced before we had kids. Shaved like 700$ off of my mortgage each month and lowered the percentage 2 points. Cars are both paid for but as stated I need a new car. Not looking forward to shelling out money for that. I will probably finance it since it is so cheap. I normally pay them off in less then two years though. I can't stand having any debt. Neither my wife or me have ever held a balance on a credit card. My score was 813 when I bought my house 6 years ago. I think it went down a little last time I checked. 780 or so.

You're doing very well. Good money management. One fo the best I've witnessed.

Cheers to you, DB.

Originally Posted by Big Smoothy

You're doing very well. Good money management. One fo the best I've witnessed.

Cheers to you, DB.

I haven't seen my money grow that much in my 401k. I started putting money in probably 10 years ago. I just don't see the growth that my parents saw and other people who invested in the 80's and 90's. That is why I choose to pay my house down. At least with that I don't have to wait until I am a certain age to get it or worry that I'm going to lose half of it in a day. I have invested in some stocks but they all have sucked. I did research all that good stuff. I made a little money with apple and sirius. Not 10's of thousands like other people have. Basically I am just very conscious of what I spend on. Plus we both make good livings and our mortgage is paid for in 1 of our working weeks. And no car payments. That is what is huge. I have friends that make more then us but both the husband and wife have 400+$/month car payments.

blokes around here are so poor, they have to suck dicks for gears

^^^ has sucked a dick for gears

Originally Posted by theCaptn'

^^^ has sucked a dick for gears

Never...

^^^ thats the rumours . . you gotta take care of business

Originally Posted by Doublebase

I haven't seen my money grow that much in my 401k. I started putting money in probably 10 years ago. I just don't see the growth that my parents saw and other people who invested in the 80's and 90's.

nor will anyone see that kind of growth again not in our lifetime. it took 30 years the last time there was a banking collapse in the US for interest rates to increase to a decent rate greater than 10%. but all of those gains were lost with bank deregulation in the 70's to today. as the economy has slowed with wage growth the FRB has had to constantly lower interest rates.

I don't know if you travel or not but you may want to look into investing out of the US, that's what I have been doing for the past 15 years. since I got out of the stock market. with the FRB lending at 0% and good banks at a APR of 1% "saving" money in the bank is just just storing it while it depreciates since real inflation is probably about 8-9% and not the BLS manipulated CPI of about 3-3.5%. and since banks are not lending all they are doing is taking those monies and gambling with it on wallstreet and paying depositors peanuts while they rake in the dough...fuck them I kept most of my assets out of the US and what little cash I do keep in country it's in navy federal.

I'm back in school racking up more student loans in order to become marketable again. Serves me right for going into public education. Like the U.S. gives a flying fuck about educating it's citizens. The powers that be prefer stupid and maleable.

Originally Posted by MDR

I'm back in school racking up more student loans in order to become marketable again. Serves me right for going into public education. Like the U.S. gives a flying fuck about educating it's citizens. The powers that be prefer stupid and maleable.

A lot of very successful people I know didn't even finish high school. A LOT. I don't know anybody that went to private school who has done better then someone who went to public school. Of course I live in a nice are with very good public schools. I'm assuming they are good because my taxes are ridiculous.

Im in the top 10% and Im fucking broke. 2400.00 mortgage with taxes, 400.00 car payment, 600.00 monthly private school, etc. Car is almost payed for thankfully. If my wife worked full time things would be better but she needs to take care of the kids. We hardly vacation, only camping a couple times a year and we dont spend any money on ourselves. I just dont know where the money goes.

Originally Posted by bigmoe65

. I just dont know where the money goes.

Taxes, mortgage, food, fuel, kids. Not anything left. I don't have a vehicle payment and I don't know what I would do if I did.

Originally Posted by bigmoe65

Im in the top 10% and Im fucking broke. 2400.00 mortgage with taxes, 400.00 car payment, 600.00 monthly private school, etc. Car is almost payed for thankfully. If my wife worked full time things would be better but she needs to take care of the kids. We hardly vacation, only camping a couple times a year and we dont spend any money on ourselves. I just dont know where the money goes.

$2400 mortgage and $600 private school. That's where it goes.

Originally Posted by ZECH

Taxes, mortgage, food, fuel, kids. Not anything left. I don't have a vehicle payment and I don't know what I would do if I did.

Seriously, I recalculated my monthly budget and was shocked how little money I have left over after bills. All this shit about the CPI saying inflation is 3% is so BS I can't even fathom it. Shit milk has doubled in price in 4 years, WTF is that about?

Originally Posted by bigmoe65

Im in the top 10% and Im fucking broke. 2400.00 mortgage with taxes, 400.00 car payment, 600.00 monthly private school, etc. Car is almost payed for thankfully. If my wife worked full time things would be better but she needs to take care of the kids. We hardly vacation, only camping a couple times a year and we dont spend any money on ourselves. I just dont know where the money goes.

Yep, that was me until my job got cut. They cut every teacher in the district coming up for tenure. Been teaching too long and have too much education for the schools to even look at me now. They can get a two for one deal with the new graduates. Union won't let me take a pay cut so I can work, so I'm basically fucked in this area. That is the U.S.A. these days. Lots of education and experience=a pink slip because they can find some newbie to do your job for half the money. I'm going for a second Masters degree where I can get licensed and hang out my own shingle. Fuck working for other people. I'll set up my own shop with another therapist or two and we'll deal with the hiring and firing ourselves. It'll take a few years to get estabilshed, but once we do, we will be fine. Mental health is a growth industry, and will continue to be a growth industry. This country is fucked. Anybody working for someone else is vulnerable.

I am self employed now for 10yrs or so. I do not make very much money and that totally sucks. I have a wife and 4 kids and am broke most the time, exept my total monthly bills are around $3000, and I drive and old minivan. I will say we keep it nice, new tires ect. but I will say there is a freedom in being self employed that is different than working for a company. All my siblings make much more than I do and I feel its because of the fact they got their educations. My youngest brother is a dentist and recently opened his own practice. I am thankful they did get their educations. Makes me feel good. I don't think being youre own boss is all that great, especially if Im not making good money.

Originally Posted by MDR

Mental health is a growth industry, and will continue to be a growth industry. This country is fucked. Anybody working for someone else is vulnerable.

the US has the highest rate of bi-polar disorder in in the world at 4% of the total population double that of the next highest country. and only 50% of them is under treatment. this number will obviously increase as the yeas go bay and more and more people can not continue to bear that financial burden.

Originally Posted by MDR

Fuck working for other people. I'll set up my own shop with another therapist or two and we'll deal with the hiring and firing ourselves. It'll take a few years to get estabilshed, but once we do, we will be fine. Mental health is a growth industry, and will continue to be a growth industry. This country is fucked. Anybody working for someone else is vulnerable.

100%, I left the rat race in 2006 to work for myself. My last boss was actually a great guy, but working for someone else relinquishes control and causes you to rely on other people to get their shit done so that you can get yours. Fuck that mess, at this point I make about twice what I was making and work half as much, plus I write my own schedule.

Originally Posted by Dale Mabry

100%, I left the rat race in 2006 to work for myself. My last boss was actually a great guy, but working for someone else relinquishes control and causes you to rely on other people to get their shit done so that you can get yours. Fuck that mess, at this point I make about twice what I was making and work half as much, plus I write my own schedule.

Less risky to work for someone else. Health care is a big factor as well. Pros and Cons to both.

Originally Posted by Doublebase

Less risky to work for someone else. Health care is a big factor as well. Pros and Cons to both.

Certainly less risky, but healthcare is easy. If I went on my wife's plan for her company it would have cost an extra $500 on top of her $150 a month. Instead, her insurance guy pooled my "company" with her boss' company and I pay $150.

Originally Posted by Dale Mabry

Certainly less risky, but healthcare is easy. If I went on my wife's plan for her company it would have cost an extra $500 on top of her $150 a month. Instead, her insurance guy pooled my "company" with her boss' company and I pay $150.

Good for you, now if the US would allow this to happen nationally we would really be cooking with gas now! What does your company do Dale?