Tag Archives: upper class

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It Takes $450,000 to Be Middle Class in the Bay Area

The other day I was having a debate with one of my blog readers about the definition of Middle Class. We were both trying to sort out what the income requirement was to be “middle class” in the Bay Area or any region of the country. I came up with a pretty simple equation…

Middle Class, to me, equals being able to afford a modest house for a family (3br, 2ba) in a reasonably good neighborhood within one hour of where you work (i.e. a suburb of a major city.) Based on various estimates you should spend about 25% of your AFTER TAX income on your monthly home payment. Thus, in order to determine what it takes to be middle class in any region, we can look at what homes cost in that region, and base our definition on that. Continue reading

Taxing the Rich, Class Warfare, and the Quest To Be in the Top 1%

With $3,000 extra after my recurring bills are taken care of per month, I know I have a chance, albeit a tiny one, to ride the tailwind of the rich to my own wealth. As I dream of prosperity, I also acknowledge the class war that is brewing throughout the world, and in America.

The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent.

For the white collar workers of the world, and even those with mid-level government jobs like teaching at the nation’s public schools, wealth — as in ascent to the top 1% — is not even fathomable. The only goal regarding finances is to be able to pay the mortgage and children’s doctor bills.

Then there are those in my bucket… the 20 somethings with a dream of one day being in that top 1%, knowing it’s unlikely, but in the least working in an industry where odds are better than playing the lottery in becoming a millionaire, in the least. Continue reading

Friends in High Classes

My ex is an attorney with a 6-figure salary and a cushy job in the city. He’s also one of the most frugal people I know. Go figure.

He IM’d me this evening to say “it was a sad day.” I figured some girl blew him off again. Instead, this time, it was potential layoffs at the office. Well, he was sad about a new pay structure at the office… no more bonuses.

A part of me gets really ticked off every time he complains about money because he’s making, like, $150k a year. On the other hand, I’m making $60k a year and I still remember a time when I was making $20k and thought $60k was “rich.” I complain about not making enough money too… so I really have no right to be upset with him. While I do feel like I can live comfortably at $60k, it no longer seems “rich” to me at all.

I’m still trying to understand what “rich” means. My greatest desire in life is the ability to donate my money to different causes and people who deserve it. And… realistically, I could do that now… yet I also haven’t donated one penny in years. I’m an awful person. Or at least a guilty one. I used to try to volunteer my time, but that was back when my time wasn’t worth that much money. Now… my time is worth a fair amount of dough, and my free time is worth even more.

My biggest money question is life is when do you reach the point where you can donate money and feel good about it without worrying that you’re pushing off an opportunity to own real estate, go to grad school (etc)? All the extra money… I put into savings accounts or retirement accounts. I’d like to one day make “enough money” where I can donate a sizable amount to non-profit(s) I care about. There are lots.

I’m always intrigued by the person who can’t walk by a homeless man or woman on the street without giving them cash, or, even better, a meal. I’m awed. I grew up in the ‘burbs of NY. My parents taught me to look the other way.

These days, I don’t know which way to look. I just feel so guilty for having such great luck (as in, having a job right now, not having student loans, etc) and so terrified of running out of money one day and going into debt. Money totally controls my life. I like having it (who doesn’t?) but I can’t stand not knowing what to do with it… and feeling like I don’t deserve it. That’s probably why I have a spending problem… I always want to get rid of it as soon as possible.