The majority of us are middle class, defined as neither rich nor poor. Seriously, that's the official definition of middle class, because depending on who you talk to and where they live, you'll get different answers.
A $50,000 household income for a family of four is absolutely middle class in Des Moines, Iowa. However, in New York City, a $50,000 household income is closer to poverty. Being middle class depends on where you live!
What Is A Middle-Class Income?
Statisticians say middle class is a household income between $25,000 and $100,000 a year. Anything above $100,000 is deemed “upper middle class”. It's funny how there's no usage of the categories “lower class” and “upper class” isn't it?
It's as if someone didn't want to hurt someone else's feelings. In cities such as San Francisco and New York, middle class income might very well extend all the way up to $300,000 given the median house price in San Francisco is over $1,600,000 in 2020. Further, it regularly costs $1,000+/sqft in New York City to buy.
Whether you make $30,000 a year or $250,000 a year, I venture to guess the majority will consider ourselves middle class. There's an important psychology involved, and that is when it comes to financials, nobody wants to stray too far from the core.
If you consider yourself rich, you will be hunted down. And if you start considering yourself poor, others will ridicule you for being dumb or lazy.
Classifying yourself as middle class keeps you safe and warm!
WE ALL CAME FROM SOMEWHERE MIDDLE CLASS
As a kid, there were only two things I ever wanted: 1) a Nintendo console and 2) a camera.I never got either because my parents wouldn't allow me to waste my time on video games, and a camera was a grown up toy.
It's a shame, because it would have been great to capture my childhood and reminisce. Ah, the inability of the middle class to have everything they want unless they work for it!
My family was by no means poor, they just weren't rich. In fact, we had everything we needed – food, clothing, love, and shelter. We lead very simple lives, buying second hand clothes, living in a suburbian townhouse, and driving beater cars.
I still remember the paintless, 15 year-old Nissan Datsan my father drove. I'd duck in horror whenever he'd drop me off at school.I even snuck the metal beast out in a torrential downpour and two hubcaps flew off while I was doing burnouts. My parent didn't even know, the car was that pitiful!
Most wealthy people didn't grow up with a Butler named Belvedere. Instead, they grew up middle class just like many of us. I'm always so disappointed when President Obama pits the rich against the poor since the chances are very high that we've all been in the same middle class once before.
The top 1% might even have more perspective than the majority of us.They know what it's like to not have much, and now know what it's like to afford almost anything.
We should draw on their experiences. After all, “the rich” are also the ones who donate the most to charity, provide jobs, and provide investment capital for our start-up ideas.
MIDDLE CLASS IS A WONDERFUL CLASS
Growing up middle class lets me appreciate all the things I have today.I can't imagine growing up rich because I would probably always feel inadequate compared to my parents.
Imagine living in a 8,000 square foot mansion your entire life, only to be able to afford a 800 square foot fixer several years after college?
Wouldn't it be nice to roll around around in a S500 Benzo with a driver, but only afford a Toyota Yaris upon graduation. After all, Americans are gobbling up average new cars prices at $50,000 today! Only the rich or fools are paying so much for a car in my opinion.
How about eating toro sashimi and prime rib every weekend with the folks, and all you can afford now is the occasional Panda Express.Yuck.
The middle class is what makes America hum.We're either a part of the middle class now, or have been there once before. In other words, we're all about the same, so let's treat each other the same.
No more bickering between different socio-economic classes.We all have the same rights and freedoms to do whatever we want, forever.
Related posts about the middle class:
The Top One Percent Income Levels By Age
Who Makes Over One Million A Year?
What Is Considered Mass Affluent?
Great Richer Through Real Estate
Being middle class is nice. But it's better to be rich. Real estate is my favorite way to achieving financial freedom because it is a tangible asset that is less volatile, provides utility, and generates income.
With interest rates down, the value of cash flow is up. Further, the pandemic has made working from home more common. Real estate should be in high demand for years to come.
Take a look at my two favorite real estate crowdfunding platforms. Both are free to sign up and explore.
Fundrise: A way for accredited and non-accredited investors to diversify into real estate through private eFunds. Fundrise has been around since 2012 and has consistently generated steady returns, no matter what the stock market is doing. For most people, investing in a diversified eREIT is the way to go.
CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations, higher rental yields, and potentially higher growth due to job growth and demographic trends. If you have a lot more capital, you can build you own diversified real estate portfolio.
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Allow me to delve into the intricacies of the middle-class dynamics with a depth of understanding derived from both statistical analysis and personal experiences. As someone who has extensively studied socioeconomic classifications and their implications, I can affirm that the concept of the middle class is not merely a financial bracket but a psychological and societal construct.
Firstly, the article touches upon the geographical relativity of the middle class, emphasizing how the definition shifts depending on location. This is a valid point, as the cost of living varies significantly across regions. For instance, a $50,000 household income may be deemed middle class in Des Moines, Iowa, but considered closer to poverty in New York City. Understanding these nuances is crucial when evaluating the economic standing of individuals.
The author introduces a statistical perspective by citing a household income range of $25,000 to $100,000 as the middle class, with anything beyond $100,000 being categorized as "upper middle class." This demonstrates a reliance on quantitative data to define socioeconomic classes. Moreover, the mention of cities like San Francisco and New York challenges traditional income brackets, considering the exorbitant living costs in these areas.
The psychological aspect of being middle class is intriguingly explored in the article. It delves into the idea that regardless of income level, the majority of individuals tend to identify themselves as middle class. This phenomenon is attributed to a psychological comfort associated with being neither rich nor poor. The fear of being hunted down if perceived as rich or ridiculed for laziness if seen as poor underscores the societal pressure to conform to the middle-class identity.
The author also shares personal anecdotes about their upbringing, providing a relatable touch to the narrative. They discuss their desires as a child, highlighting the middle-class struggle of not having everything but having essential needs met. This humanizes the concept of the middle class and underscores that it is not a static condition but a journey that many have experienced.
Furthermore, the article challenges stereotypes about the wealthy by suggesting that many affluent individuals grew up in middle-class households. This perspective encourages empathy and understanding between different socioeconomic classes. It emphasizes that the rich, too, have faced financial constraints and should be viewed as potential sources of wisdom and guidance.
In conclusion, the middle class is portrayed as a dynamic and vital component of society, contributing to the harmony of the nation. The author advocates for treating each other with equality, regardless of socioeconomic status, and highlights the importance of appreciating the benefits of the middle-class experience. This nuanced understanding of the middle class sets the stage for a more comprehensive dialogue on socioeconomic dynamics.
