Wednesday, June 02, 2010

Are We in the Middle Class?

Are you middle class? by Rick Newman in U.S. News and World Report shares some range and median values for the middle class families. I summarized the medians in the table below and did a comparison to our situation:

Middle Class Values
CategoryMedian Our Status
Income$81,000Lower, since we're retired
Home Value$231,000Higher
Mortgage$17,600mortgage paid off
Home Size2300 sq ftYes
Medical Expense$5,100Yes
Car cost per year$12,400Lower
College Savings per year $4,100Higher
Everyday expenses$14,600Higher
Number of earners1.760.5 (1 person part-time)
Net Worth$84,000Higher
Debt18% of incomezero debt

Overall, I would assess our family as being middle class. The only number that didn't seem correct to me was the value for living expenses (utilities, clothing, food, entertainment. etc). A cost of $1,200 per month for living expenses seems low for a family of four making $81,000.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

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