Why do people think credit cards magically create debt? Honestly, people who put everything on their debit cards probably aren't the smartest with their money.
Credit cards - yes, I think that's what people are doing which terrifies me. I got into trouble in college with cards and then cut them all up and only have one for emergencies....
Why do people think credit cards magically create debt? Honestly, people who put everything on their debit cards probably aren't the smartest with their money.
thats one hell of a BMW
Here's the answer...
Double Income, No kids, No debt (other than house)
I guess that's not 'the' answer. Just our answer.
Why do people think credit cards magically create debt? Honestly, people who put everything on their debit cards probably aren't the smartest with their money.
It varies so much by region. The house I live in would cost $100k in some places and $500k in other places. It's almost dumb to even try to have this argument online with people all over the world.
My wife comes from a family that would travel internationally quite often, so I've been feeling guilty and pricing out vacations (for reference, growing up we'd only vacation domestically other than one trip back to my parent's homeland, and I didn't go to Europe until I could afford it on my own) - trip packages to Euro destinations for a couple are in the $5,000 - $9,000 range!
Now most of my peers make a similar salary range yet they all seem to travel like crazy, it's something I wonder about - how are they dropping upwards of 10% of their annual income often times multiple times a year (in NYC, where rent is already up to 50% of your income) - is everyone going into massive debt (my friends aren't huge savers based on the amount they spend dining and drinking out), or is there something I'm not getting? My wife's not demanding anything by the way, I just feel bad and am starting that jar.
I'll just go ahead and leave this here:
ClassTypical characteristics
Top-level executives, celebrities, heirs; income of $500,000+ common. Ivy league education common.Upper class (1%)
Highly-educated (often with graduate degrees) professionals & managers with household incomes varying from the high 5-figure range to commonly above $100,000.
Semi-professionals and craftsmen with some work autonomy; household incomes commonly range from $35,000 to $75,000. Typically, some college education.Lower middle class (32%)
Clerical, pink- and blue-collar workers with often low job security; common household incomes range from $16,000 to $30,000. High school education.Working class (32%)
Those who occupy poorly-paid positions or rely on government transfers. Some high school education.Lower class (ca. 14% - 20%)
I would say the same for people that think CC's are magical gift printing machines.
The problem is that people on AT don't fit those percentages. We have more like 30%+in upper middle class, 60% in middle class, etc. The view is skewed.
Back when I was middle class and now in upper-middle, not much for me changed. More money in savings for the most part. I think this is why most people don't see a difference between middle and upper middle outside of the extreme highs and lows.
Biggest difference I've noticed is that I have a new car a lot sooner. I don't buy stuff that I don't think is worth the tag and when my income goes up $10k or whatever, that's usually just money in the bank. I've already become used to not having that $10k.
I honestly don't know what I'd do different at $500k/yr. Maybe retire earlier.
I go to Europe around 4-6x / year but usually for work. The GF and I try to do 2x European vacations per year as well as several domestically. We are middle class (< 200K combined gross income in DC). We pay $2600/mo rent in a recently gentrified DC neighborhood. We have no kids and no car. We are also very good planners and usually spend max 2-3K total with airfare for two weeks in Europe. The good planning, no kids, and no car are all important factors. We are also debt free.
Vacation homes and college tuition for grandkids. I drive a car that's within 20-30k (he ended up going fully loaded on his RR) of my fathers but we have a few hundred thousand dollars separating us in income. The big difference between us though is I don't have a second home in florida, nor am I considering a 3rd shore house in NJ. And finally, I'm not setting aside 1 million to fund all my grandkids college.
Otherwise I agree not much is different.
The no kids is by far the most important factor. They rape income and make all trips cost more, which is hard with less income.
Dual professional income no kid couples are literally rolling in cash and, if they aren't, they are doing something terribly wrong.
The no kids is by far the most important factor. They rape income and make all trips cost more, which is hard with less income.
Dual professional income no kid couples are literally rolling in cash and, if they aren't, they are doing something terribly wrong.
The problem with those figures are they don't factor in location. 20 years ago $100,000 in California was definitely upper middle class. Today not so much. I definitely wouldn't have called myself upper middle class when I was making between $100K and $200K. Why? Spending power is almost halved. However a $100,000 income in the midwest is definitely upper middle class. $35,000 is lower class in CA but middle class in the midwest.
But you're right. It all has to do with priorities.
We believe that life is best lived to the fullest by visiting new places, making new friends, and sampling new foods. We believe that having children causes more stress, causes stress to relationships as couples no longer focus on each other, and are cost-prohibitive to raise appropriately. And if you cannot raise children appropriately (by your own definition) you shouldn't have them.
They don't.