What is the financial difference

[Bassett]

Please no bashing. I really am curious as to what is considered poor and where middle class starts money wise. Does anyone know what the government thinks is poor and where middle class starts? Also what do YOU think it is? Please lets just keep politics out of this and just give some nice answers. Okay? We should get a lot of different answers because of the area of the country we live in.

 

[Laura]

[SIZE=12pt]I have no idea what the government thinks

IMO, a family in NW Arkansas can be considered low income with a combined income of under $35,000.00 Middle class IMO would go up about $70,000-$80,000, upper middle class up to about $120,000...BUT REMEMBER this is rural living out here. A nice, NEW 1200-1500 sq house can be purchased for about $129,000-$179,000.[/SIZE]

We have rentals that go for $450.00-$650.00/month and most of our renters have been very hard hit in this economy. Luckily all units are rented...whew! We did give most of our renters a slight reduction in rent for re-signing 12 month leases though.

 

[AppyLover2]

It's hard to put a dollar figure on something like that because you also need to consider how a person lives. Example: I live pretty well (some would say mid-middle class) but my income would be considered in most areas to be lower class because I live on a fixed income. To determine a persons "class" I think you have to consider more than just their current income. JMO BUT if we're only talking income here guess I'd fall into the lower-middle-class category.

 

[Matt73]

I think $24 000/year and under is poor in my eyes (mind you, I was born and raised in Canada's biggest city...so I may be way off). Whether that's a single income or family. What the U.S. government considers poor, I'm not sure.

 

[Marnie]

I too would like to have more people answer this so we can see what different parts of the country makes on an average wage, don't need to say what you make but just an average family or tell what the wages are in your part of the county, I'd really like to know.

 

[Bassett]

Thanks to all who replied. I really would like to hear more also. Son said he thinks anyone around here West Central Wisconsin (about 30-60 miles from any good sized town) who makes 30-40 a year MIGHT be considered the start of middle class. Anyone who makes 50-60 would be considered well off. But like Donna said a lot depends on how you live. I, myself, live on less that 19,000 a year. I am poor by all means but don't consider myself poor because I have everything I need. I pay $400.00 a month for rent. Now I know very well people who live in California make more and pay more because my sister-in-law and niece and families live there. So it will depend on where you are from but come on people what do you think is the start of poor? And the beginning of middle class in your area. No Ideas?

 

[Lucky-C-Acres-Minis]

Well in 2007 the poverty line was an annual income of under $20,650 for a family of four..

The Congressional Research Service report last year declared "middle class" income of $19,000 to $91,000

I've always considered "middle class" income from around $30,000-$90,000 on the high side, but with the economy going down the drains those numbers are bound to shift.. Heck, I'm fresh out of college, been working a GOOD paying job since a week after graduation (will be 5 months in a week), I bring home a decent chunk of change every two weeks but still struggling, even took over most of the horse items primarily so my parents could put their money more toward their expenses.. I'm still living at home on the farm simply because yes it's cheaper, there's not much around available, and that way I'm on site to care for the horses and also help my 80+ year old grandfather still farm, which many think he should give it up (has arthritis bad, diabetes as well) but the cold fact is, if he gives up the grain farming and "retires", he'll never be able to afford his medication, insulin shots, and other bills

 

[Basketmiss]

In MO I think $15,000- 20,000 with kids is poverty. $40,000 to $80,000 is middle class and higher is well off. Rich are people make $250,000 or more.

I know someone once told my mom that they can get welfare and wic , etc as long as her husband makes less than $60,000-they have 5 kids! So I guess if you make just under $60,000 and have lots of kids you are poverty, here anyway!!

 

[AppyLover2]

Bonnie I'm not trying to hijack your thread but I did want to tell Lucky-C that I admire her for helping to care for her grandfather and his farm. He may not be in the best of health but it's just possible that his farm is what keeps him going.

 

[Sonya]

I think it depends on where you live as well. for example $60,000 say in West Virginia goes alot farther than $60,000 in many parts of California or New York where the cost of living is much higher. If you have to pay double or more for rent/mortgage for the same type of house that's going to make a big difference.

 

[Jill]

Just like Sonya says, it so depends on where you live.

When I was in Iowa a couple years ago, I looked at a business associate's house that was for sale. It was a gorgeous restored Victorian on 2 acres (so not suitable for me but neat to look at). He told me for $42,000, I could have it. WHAT? It was a HUGE house, almost a mansion. In the town where my office is, that house would have been well over $1M... I wanted to buy that house just because it was 5x the size of mine and less than 1/5th as "valuable".

Also, people who do think they're going to be getting a distribution from "the Wealthy" need to think how much more wealthy they probably are than a large percentage of the US population. How many people in this Nation can imagine owning something as luxurious as a horse? I think probably almost every LB memeber is more wealthy than many people can imagine being... A lot of people scrape by to put food on their tables and "we" have horses.

 

[AppyLover2]

A lot of people scrape by to put food on their tables and "we" have horses.

Good point Jill. I'm sure to hundreds of thousands of people we here on LB would be considered rich.

 

[Buckskin gal]

Here it appears a person is poor if they qualify for food stamps, and other social programs and they probably either have no job or are making minium wages. I consider, in this area the middle class is making upward of $40,00.00. Money isn't everything but how it is spent makes a world of difference if one is going to take care of themsleves. Middle class would be $40,000.00 and up and life can be great with that income here IF the money is spent wisely. It takes hard work but lots of pride in being a good money manager.

 

[Bassett]

Thanks all you are coming through just the way I wanted. Around here, the way I live, the simple good old life, $60,000.00 would be living high on the hog compared to people living in California, New york, Chicago, and such. All parts of the country are very different. How many of you who are renting can say you pay $400.00 a month for a 3 bedroom, 2 bath facility? I am richly blessed. I love my life.

 

[minie812]

In Kansas around the Wichita area (we have good plane manufacturing jobs here)but you need experience, but min wage is something like 2.50 hr if you are in the resturant biz cause they fiqure tips. We are the lowest in the nation for that. Low income is what I consider to be under 30,000 a yr for a family of five,before taxes. My SIL works 7 days a week and on call to make ends meet and he makes 11.50 hr. and has three kids and a wife to support and with rent(3bdr/1bath) is 575.00 mth-car payment (no credit cards) insurance -he rides a bike to work and Dr bills (g-daughter broke her arm-other child due for Sx in Dec on his ears because of chronic condition. doesn't pay for my daughter to work right now because of high cost of sitters and daycare-she goes to consignment shops and garage sales for all their clothes so I consider them working poor because that is before getting taxed! And as to middle income I think that is around 30,000 -75,000 depending on how many in the family and how you spend (we have one emergency credit card) and if we can't pay cash...oh well. Anyone around here that makes over 100,000 a year and knows how to control their money is considered rich

Course some people live on credit and thats where they get in trouble. Believe me when I say that having been a supervisor in the health care setting I worked so many hours as did hubby and the most we ever made around here was 120,000. It got ate up in taxes as well as we ate out all the time because we were to tired to cook

After my accident two years ago we have been living on only my hubbys check and I stay home now (no income) no one will hire me because of my limitations and we are doing better living out in the country and not eating out and one trip a week to town for groceries. We buy our beef from a local farmer (and spread the beef around) to the family. We are investing in the market since it is down and we owe very little on our home and vehicles. I am making monthly payments to the Drs. that continue to treat me so that is a good thing. I feel for young families that are trying to make ends meet because they get caught up in the middle and really feel someday if we are not careful their will be NO middle class just working poor!

 

[Pepipony]

I guess the income would also matter if you did/didnt have kids. We have no kids and live rural, hubby has a very well paying job and I stay at home. Others with hubbys job struggle because they have kids, bought that big house and new vehicles. Then wonder why hubby can take his rest cycles ( RR , no hours , just on call ) and they cant. We have older vehicles and still have the same house we bought when we made 1/3 what we are now.

I guess for around here $25k with kids would be rough, over $50k w/kids easier , $75k with kids should be fine. Just stop trying to keep up with the Jones' LOL

Having horses doesnt mean you are rich. It may mean that you are frugal in other areas. People who go out partying every weekend or have to have the newest things etc, could very well spend way more than some do on their horses.

 

[Margo_C-T]

What an excellent idea for a thread!!

New Mexico is, generally, a high cost of living, low income state--or at least, that's what I've read, heard, and experienced! I would say, here, that anyone with children would struggle if making less than $30K/year...and I would PERSONALLY consider any single person w/ no dependents who has less than $20K/yr disposable income as essentially 'poor', from a financial standpoint, at least...and "Middle class',for the same type person, to begin at around $30K disposable income, and go up to around $80K...above that, here---well-off. JMPO.

That said, of course 'most' real estate isn't as costly as in, say, CA, or other places with a host of features that many find desirable...exception is probably Santa Fe, and certain areas near Albuquerque....

I am on a very modest fixed income. I live frugally, but because I have planned ahead, I AM able to continue to keep and enjoy my miniatures and the things I love to do with them--at least for now. Due to a modest inheritance from my mom nearly 30 years ago, we were able to pay off this house about half way through the mortgage(a POWERFUL incentive was that mortgage interest rates were in the 9-10+ % range when we were transferred here; we HAD to do all we could to mitigate those longterm costs, and did, when we could!). I don't have all that much in savings, but I have NEVER regretted paying off the place.

Pepi made a good point. Some of us choose to live VERY frugally in many areas where others spend more freely, in order to have resources for what we truly LOVE to have and do.

Margo

 

[Reijel's Mom]

When I was in Iowa a couple years ago, I looked at a business associate's house that was for sale. It was a gorgeous restored Victorian on 2 acres (so not suitable for me but neat to look at). He told me for $42,000, I could have it. WHAT? It was a HUGE house, almost a mansion. In the town where my office is, that house would have been well over $1M... I wanted to buy that house just because it was 5x the size of mine and less than 1/5th as "valuable".

I live in Iowa and would have LOVED to have found a deal like that

There ARE some really great deals in Iowa, though, for those who work primarily from home. I live 45 minutes from my workplace where I have to be at daily, that's the farthest I was willing to go, but I needed to go out that far from the city where I work to find an acerage we could afford - and we paid a LOT more than $42,000.

I would guess in my town annual income for a "middle class" couple/small family would be $40,000 and up.

 

[Jill]

This house I saw was in Panora, if that helps

It was AMAZING and I'd love to have so big and nice a house

 

[LowriseMinis]

California can be a tough place to live. My part of the state is still pretty 'cheap', but it's hard to imagine even a single person living comfortably on less than $20k a year. I'm considering living expenses, bills, a car, etc. I make much less than that but by the grace of my parents I have a pretty comfortable life (they haven't kicked me out yet!).

I wonder, is it like that where everyone else is? Almost everyone I know in my age group (under 30) either still lives at home, lives somewhere by the grace of their parents, or they have a $500-$600 apartment with two roommates.

I just did a Google search, and apparently 13% of our population here in CA-that's 4.7 MILLION people-are living below the poverty line. Also, nearly 1 in 5 children in this state are living in poverty.