what is middle class income?

Quote: Gabes22

Is that middle class income enough to get you a good house in a safe neighborhood, with two cars in good condition with enough money to save for retirement, and the college education of your two kids, furthermore never needing to really truly worry about where your next meal is coming from and not ever truly having to worry about the lights or water being turned off.

This is exactly what comes to my mind when I think "middle class." And, as said before in this thread, your location has a great deal to do whit how much income it would take to achieve the above.

Also, I think a lot of it depends on your life situation, as well. Assuming you are not in a big metropolis... if you're single with no kids, $50k would put you firmly in the middle. A couple with no kids where each made $50k would be the high end of middle. However, if you are the sole breadwinner in a big family, $50k wouldn't get you very far. I'd think you'd be lucky to be considered in the 'middle.'

Quote: teddys

Mission146 and I were talking about opening up a used car dealership. So please come to Mission & Ted's Crazy House Of Auto Deals for your next car purchase. You roll dice to determine your interest rate. One of the dice is already a two.

So, you're saying there's a 1/11 chance I could be paying 4%? Sweet! ;)

Quote: pokerface

Many people buying their decent clothes from Walmart, eating at fast food chain restaurants, and still think or feel they are in the middle.

Hey! Stop following me around!

I looked up a few stats relative to this discussion.

Median family income is about $51K

Average wage is about $41K

66% of people earn below the $41K average

Bend these as you wish to make your point.

Quote: AZDuffman

So you make $30K a year and $15K is your limit, which means you have no business even thinking new.

My wife makes 40k and bought a new
Chevy last year for 18K. She financed
it thru GM then immediately took 12K
from her retirement fund and paid off
part of the GM loan. She can borrow
from her fund at zero interest as long
and she pays it back in a certain amount
of time. The GM loan is now paid off
and by the end of the year the fund
will be paid back.

Quote: EvenBob

My wife makes 40k and bought a new
Chevy last year for 18K. She financed
it thru GM then immediately took 12K
from her retirement fund and paid off
part of the GM loan. She can borrow
from her fund at zero interest as long
and she pays it back in a certain amount
of time. The GM loan is now paid off
and by the end of the year the fund
will be paid back.

Will your wife do my accounting for me?

Quote: EvenBob

My wife makes 40k and bought a new Chevy last year for 18K. She financed it thru GM then immediately took 12K from her retirement fund and paid off part of the GM loan. She can borrow from her fund at zero interest as long and she pays it back in a certain amount of time.

What is the rate on the GM loan? FYI: The conventional no-penalty period for loans from IRA's is 60 days.

Quote: SanchoPanza

What is the rate on the GM loan? FYI: The conventional no-penalty period for loans from IRA's is 60 days.

It's not an IRA, it's thru the company she
works for. You can borrow
from it but you have to pay it all back.
The GM rate was low, but she ended up
paying almost no interest at all. She paid
off the rest of the loan with a 0% interest
loan from a CC offer. My wife
is very smart about money and very dumb
about gambling. Drives me nuts.

Quote: EvenBob

My wife makes 40k and bought a new
Chevy last year for 18K. She financed
it thru GM then immediately took 12K
from her retirement fund and paid off
part of the GM loan. She can borrow
from her fund at zero interest as long
and she pays it back in a certain amount
of time. The GM loan is now paid off
and by the end of the year the fund
will be paid back.

Hopefully The General was giving rebates at the time, that would really be a savings!

I am going on 6 years with no car payments and hope to make that for life. If the current vehicle can go 3 or more years I can always have it covered and drive something fairly nice.