5 ms·

My wife and I combined make well above the limit for 1%-er range, yet we both feel middle class, although upper middle class is probably more accurate. We both

My wife and I combined make well above the limit for 1%-er range, yet we both feel middle class, although upper middle class is probably more accurate. We both work extremely hard, from 9-10 hrs a day in the office and 2-3 hrs at night, most nights. We barely have time to see the kids during the week, and the weekends are filled assuaging our guilt by spending it with them, unless we have to work. We have a modest house in the SF Bay Area, with an unmodest mortgage, and a savings that is miniscule compared to our costs and isn't growing. I have my Honda Accord that I paid off years ago, and my wife leases a Lexus SUV. We are the prototypical house-poor Bay Area family, and if one of us loses our job, we're pretty fucked. Neither of us has any sort of insurance besides whatever is provided by our companies. The two "luxuries" we have are a weekly house cleaner, and a top notch babysitter once a week, which is why I think upper middle class is apt. We don't feel "upper class", and we definitely don't feel rich. We know rich people, though, with live-in nannies, rented out Gary Dankos for special events, got box suites at the Super Bowl, etc.

exstudent2 10y ago
A Lexus SUV is a luxury. Some would argue that living in the SF is as well.
- vonmoltke 10y ago
  You know, things have gotten ridiculous if we have reached the point where living in any particular geographic area larger than a neighborhood has become a luxury.
- refurb 10y ago
  He might have a modest lifestyle in the most expensive city in the US. That's like saying you own a modest house in Beverly Hills and have a mortgage. Well, that's upper class!
graeme 10y ago
1% in the US is about $200,000. So, you have a household income of $400,000 and are struggling? I'm curious, what are your main expenses?
- zzalpha 10y ago
  I'm curious, what are your main expenses? Living in the Bay area?
- whamlastxmas 10y ago
  Probably $6000-10,000 a month in mortgage payments. And he said combined they're 1%. So after tax, probably more than half of his money going to mortgage.
  - xapata 10y ago
    That still doesn't add up in my mind. A 1%-er household would have $240k+ post-tax annual income, more if they're deducting hefty mortgage interest payments. $100 in food daily ~ $36k $500 weekly domestic help ~ $25k $500 monthly utilities ~ $6k $2k monthly transportation ~ $24k $2k monthly misc ~ $24k $10,000 monthly mortgage ~ $120k That hits around $235k post-tax. I think that's a nice lifestyle. Eating out less would allow for different "fun" activities. Oh, I guess I forgot savings. Doh! I'd aim for savings about 10% annual pre-tax income for a household bringing in $400k+ pre-tax. I'm not sure how much of the mortgage principal payments I'd count towards that amount.
    - pfarnsworth 10y ago
      Private school for two children is ~$4000/month.
      - xapata 10y ago
        Well, I guess we're not eating out every day anymore.
- deleted 10y ago
  [deleted]
- handedness 10y ago
  What's the source for that? Everything I've seen puts the US natinoal average for 1%-by-income in the low to mid $400K (AGI), and ~$30K globally.
dahart 10y ago
> My wife and I combined make well above the limit for 1%-er range, yet we both feel middle class, although upper middle class is probably more accurate. If the definition of upper class is top 1%, then upper class is accurate, but maybe the top 1% threshold in the bay area is higher than you think? http://www.businessinsider.com/the-salary-of-the-top-earners-in-san-francisco-2015-11 http://www.businessinsider.com/the-salary-of-the-top-earners... http://gis.mtc.ca.gov/home/images/motm/motm212.pdf http://gis.mtc.ca.gov/home/images/motm/motm212.pdf I made the argument on another comment that most "rich" people still work for a living, it seems you're a good example of that. And yeah, having done it, I know first hand how you can be rich on paper, but live in the bay and feel like a college student. Don't know if it makes you feel any better, but roughly 99% of people make less money than you do, and also don't feel rich and will also be hosed if they lose jobs. ;)
peter303 10y ago
Boo hoo spoiled whiners

exstudent2 10y ago

A Lexus SUV is a luxury. Some would argue that living in the SF is as well.

vonmoltke 10y ago
You know, things have gotten ridiculous if we have reached the point where living in any particular geographic area larger than a neighborhood has become a luxury.
refurb 10y ago
He might have a modest lifestyle in the most expensive city in the US. That's like saying you own a modest house in Beverly Hills and have a mortgage. Well, that's upper class!

graeme 10y ago

1% in the US is about $200,000. So, you have a household income of $400,000 and are struggling? I'm curious, what are your main expenses?

zzalpha 10y ago
I'm curious, what are your main expenses? Living in the Bay area?
whamlastxmas 10y ago
Probably $6000-10,000 a month in mortgage payments. And he said combined they're 1%. So after tax, probably more than half of his money going to mortgage.
- xapata 10y ago
  That still doesn't add up in my mind. A 1%-er household would have $240k+ post-tax annual income, more if they're deducting hefty mortgage interest payments. $100 in food daily ~ $36k $500 weekly domestic help ~ $25k $500 monthly utilities ~ $6k $2k monthly transportation ~ $24k $2k monthly misc ~ $24k $10,000 monthly mortgage ~ $120k That hits around $235k post-tax. I think that's a nice lifestyle. Eating out less would allow for different "fun" activities. Oh, I guess I forgot savings. Doh! I'd aim for savings about 10% annual pre-tax income for a household bringing in $400k+ pre-tax. I'm not sure how much of the mortgage principal payments I'd count towards that amount.
  - pfarnsworth 10y ago
    Private school for two children is ~$4000/month.
    - xapata 10y ago
      Well, I guess we're not eating out every day anymore.
deleted 10y ago
[deleted]
handedness 10y ago
What's the source for that? Everything I've seen puts the US natinoal average for 1%-by-income in the low to mid $400K (AGI), and ~$30K globally.

dahart 10y ago

> My wife and I combined make well above the limit for 1%-er range, yet we both feel middle class, although upper middle class is probably more accurate. If the definition of upper class is top 1%, then upper class is accurate, but maybe the top 1% threshold in the bay area is higher than you think? http://www.businessinsider.com/the-salary-of-the-top-earners-in-san-francisco-2015-11 http://www.businessinsider.com/the-salary-of-the-top-earners... http://gis.mtc.ca.gov/home/images/motm/motm212.pdf http://gis.mtc.ca.gov/home/images/motm/motm212.pdf I made the argument on another comment that most "rich" people still work for a living, it seems you're a good example of that. And yeah, having done it, I know first hand how you can be rich on paper, but live in the bay and feel like a college student. Don't know if it makes you feel any better, but roughly 99% of people make less money than you do, and also don't feel rich and will also be hosed if they lose jobs. ;)

peter303 10y ago

Boo hoo spoiled whiners