Really curious

[runamuk]

I am curious what many here consider "low income"?

I know it is variable from state to state as far as government guidelines.......but I often wonder what other people consider low income vs middle income.....

I know for our area (WA) a family of 4 making less than 38,000 a yr is considered low.

What's it like elsewhere?

 

[Chaos Ranch]

I am curious what many here consider "low income"?

I know it is variable from state to state as far as government guidelines.......but I often wonder what other people consider low income vs middle income.....

I know for our area (WA) a family of 4 making less than 38,000 a yr is considered low.

What's it like elsewhere?

We'd be pretty far down the financial ladder if we lived up there. We're a family of 7 with one income and my husband is lucky to reach $30,000. a year! I'm not sure what the poverty level is here in Arkansas...anyone know ?

 

[Sonya]

I'm not sure what it is in Michigan...I'm sure low income is considered much less than $38,000. The auto workers here do fairly well, but those jobs are getting less and less and lots of layoffs. Our economy here is terrible right now.

I myself personally think that anything under $35,000 is low income for a family...say a family of 4, of course one person could live off that very well. Middle income I would consider to be up to $120,000 maybe...of course those who can budget well, can really make money stretch...that is something I'm not good at!

 

[runamuk]

I wasn't thinking so much poverty level which is quite low, but more what is low income......most state programs in our area use 185%-200% of the poverty guidelines which is what brings the number up to 38,000 (approximately) The northwest has an overabundance of millionaires

housing costs along with other ordinary expenses are on the high end, so to just get by takes alot more money than it used to.

2007 HHS Poverty Guidelines Persons

in Family or Household 48 Contiguous

States and D.C. Alaska Hawaii

1 $10,210 $12,770 $11,750

2 13,690 17,120 15,750

3 17,170 21,470 19,750

4 20,650 25,820 23,750

5 24,130 30,170 27,750

6 27,610 34,520 31,750

7 31,090 38,870 35,750

8 34,570 43,220 39,750

For each additional

person, add 3,480 4,350 4,000

I realize most people consider money one of those things not to be discussed, but it has always fascinated me due to having so little

a friend of mine has an inheritance coming and the possible numbers of what she will get per month for the rest of her life are mind boggling to me...on the one hand low end $3000 and on the high end $12,000

good googly moogly....I'd take the low end and still be ahead

 

[SilverDollar]

Gosh, I don't know what "low income" would mean here in Southern California. I can't believe a family of four could exist on $25k per year.

 

[Reble]

Ontario Canada- Hubby says / Just guessing

Low Class $10,000.00 - $30,000.00

Middle Class is your Average person $30,000 - $100,000

 

[Buckskin gal]

I was reading just awhile back that an income of $41,000 and lower is considered low income for a family of four. The POVERTY threshold for a family of four-2 children was $20,650, this year.

 

[minimama]

Where we are if you make less than $70,000 a year for a family of four, you are pretty poor.

 

[Jill]

In my area, Northern VA, I don't really know how couples bringing in less than $100k/yr can really make it.

 

[Charley]

I guess it is all relative to the cost of living in the area you live in. I don't have a figure in mind....some live on air and are happier than those that waste everything they have.

I choose to live humbly. I do watch what I spend as I realize that each dollar that we earn can only be spent once and then it is gone. I tend to be happier when I am less cluttered, so I really think before I buy anything. If I buy a piece of clothing, I am thinking of what item in my closet will be leaving. I do think that many people just have too much stuff and that is not good. I tend to measure wealth in happiness not in material possessions. Even thought I have retirement funds and savings set aside, they are there for a future event, not for now. Kinda like out of sight out of mind.

Sorry I have gone completely "off topic".

 

[SweetOpal]

Charley,

I need you to be my financial advisor

....I know that in So Cal there are people who make a living on very little, and to say under 70,000 or under 50,000, I just don't know what the bottom is. I don't think that people making minumum wage can be living it up that is for sure, not sure how they can even afford housing. I think that it is very true, the more you make the more you spend.

 

[SweetOpal]

In my area, Northern VA, I don't really know how couples bringing in less than $100k/yr can really make it.

This thread has really got me to thinking and doing some research, as I had never thought abouth what Low income would be considered. I found it high that a $100,ooo would be necessary to barely be making it. So I went though some steps and found this out about your area Jill.

The 2006 median income for a household in the county was $72,453, and the median income for a family was $75,507. Males had a median income of $49,166 versus $38,076 for females. The per capita income for the county was $31,458. About 3.90% of families and 5.80% of the population were below the poverty line, including 6.70% of those under age 18 and 5.20% of those age 65 or over.[1](this is for Spotsylvania, Va)

I am guessing these people may be budgeting wisely to be making it. I also searched my area to see what it had to say. Boy was I shocked, and this is based on our county that we both live in, I do live in the most expensive city of our county and I am guessing that Jill may also.

The median income for a household in the city was $180,155, and the median income for a family was $156,254. Males had a median income of $142,408 versus $132,122 for females. The per capita income for the city was $24,237. About .1% of families and .4% of the population were below the poverty line, including 14.5% of those under age 18 and 5.2% of those age 65 or over.(This is for Redlands, Ca)

I then looked up the County that Mary is in and found that thier levels were alot lower as well, I am guessing again thier cost of living is probably alot less than other parts of the country.

The median income for a household in the city was $35,147, and the median income for a family was $45,032. Males had a median income of $32,525 versus $21,824 for females. The per capita income for the city was $19,207. About 9.2% of families and 12.0% of the population were below the poverty line, including 16.5% of those under age 18 and 7.0% of those age 65 or over. (this is for Billings,Mt)

Not trying to ruffle any feathers just thought is was very interesting as to how we see what poverty is and what our own income is, and what we think as individuals what others think we can make it at.

Jennifer

 

[Jill]

That is interesting, Jennifer. I do live in Spotsy., but I work in Warrenton (Fauquier County -- very affluent) as a financial planner / investment broker for 12 years. Being that I deal with high net worth clients almost exclusively, I may have a somewhat skewed opinion of what's required to make it "here", but it is what I believe. My clients are almost all from the Northern VA area -- Fauquier, Loudon, Fairfax, Prince William, etc., counties.

I do have to say, the range of lifestyle in this state can be stunning. We bought one of our dogs from a location in southwest VA, and I was really surprised to see the area our dog came from (Apalacha pretty much, I think...). It was very bad poverty in that area. The houses were shacks and saw plenty of outhouses, too. Such a contrast to Northern VA with the $1M+ homes on 1/4 of an acre.

 

[mininik]

Very interesting. It sounds like Mary's area and where I'm at are similar.

 

[SweetOpal]

Jill,

I would have to agree with you how the states can definately vary from area to area, this is from a town that is only an hour east of me. It is quiet shocking, I think my point is that what one needs to live off of or what they think they need to live off of is usually different in every persons eyes, or someone living an hour from me wouldn't be able to survive. I was comparing the areas that people lived, not worked, sorry I should have made that more clear.

The median income for a household in the CDP was $34,172, and the median income for a family was $37,500. Males had a median income of $33,325 versus $25,543 for females. The per capita income for the CDP was $16,790. About 9.4% of families and 12.8% of the population were below the poverty line, including 17.0% of those under age 18 and 7.1% of those age 65 or over.(Thousand Palms, Ca)

 

[Jill]

It is all so subjective and so variable... a distance of only 50 miles makes monumental differences in my area. Plus, some people live off maybe ramen noodles while others go out to nice restaurants many days a week. Some save for retirement and other things as a regular part of the budget, while others don't at all. And, like I saw where Kelsey dog came from, some apparently don't even have running water! The diverstity between the have nots, have some, and have a lots is tremendous. So, what goes into "making it" in my book, would maybe be over board in someone else's (?). What I might consider a basic budget need may not even be on someone else's radar.

 

[RainSong]

It's bad in the Portland Metro area, here- We've been eyeballing rents for 2 bedroom apartments and lowend is usually around 600 and change.

It's not that much different here, some 2 hours south!!

And people wonder why we're still living with my mother... even if it is driving me insane.

 

[Buckskin gal]

I think you are a very wise person

So true, that each dollar we earn can only be spent once and then it is gone. Thinking about how we spend and what we spend it on does make a world of difference, overall. Too many people think they have to have it all even though they can't afford it and end up in awful shape. Planning for the future with what we do earn is necessary for living independently and even happily.

Mary

I guess it is all relative to the cost of living in the area you live in. I don't have a figure in mind....some live on air and are happier than those that waste everything they have.

I choose to live humbly. I do watch what I spend as I realize that each dollar that we earn can only be spent once and then it is gone. I tend to be happier when I am less cluttered, so I really think before I buy anything. If I buy a piece of clothing, I am thinking of what item in my closet will be leaving. I do think that many people just have too much stuff and that is not good. I tend to measure wealth in happiness not in material possessions. Even thought I have retirement funds and savings set aside, they are there for a future event, not for now. Kinda like out of sight out of mind.

Sorry I have gone completely "off topic".

 

[Buckskin gal]

OOPS

 

[runamuk]

I enjoy looking at median income stats.........something to note when looking at those numbers is that is not an AVERAGE income.......it is the number that falls in the middle meaning 50% of people make more than that number and 50% make less than that number.

While chatting with family at dinner last night I was amazed at the real side of the Seattle booming housing market. My BIL was thinking of buying a bigger house they live in a really cute home on a double lot but it is small less than 1000 sq ft. They have owned it for some time and don't owe much on it so thought about selling and upgrading...........the house they found was lovely but they were looking at a mtg payment of 2800 per month

that is about our gross monthly income. They got cold feet and decided they'd just add on to the home they already own, they can double the size of the home for about a 1/4 the cost of buying a bigger house.

At some point something has got to give as people will not be able to afford to buy/rent, I fear there is going to be a rather large crash eventually. We downsized our overhead so we can get by on lower income, after being spread too thin once and losing a job, we opted to downsize so we can get by on one income we go without many things other people consider neccessities

but we are much happier.