How do you define these?

I’ve been working on my personal and business taxes and I’ve been thinking about income & wealth. How do you define the following categories in terms of both income and wealth? In dollars, not in intrinsic or intangible things (even though these are certainly more important in the long run).

Upper Class

Middle Class

Lower Class

Poverty Level

I'll take a stab:

Poverty - less than $25,000

Lower - greater than $25,000 but less than $75,000

Middle - greater than $75,000 but less than $300,000

Upper - greater than $300,000

Note: These would be annual amounts for the family (husband and wife combined).

man so I am lower class?

I would agree with Wagners accessment, especially in my state...Calee-Fore-niah!

Charlie

i can't see someone making $300,000/yr middle class. that's freakin' wealthy to me. $200,000/yr is pretty freakin' nice too. i think it's relative to location, but generally, middle to me is anywhere from 50 to 150 or so.

I came to these amounts by looking at some of my tax clients from the past couple of years. It seems that families making less than $75,000 are really struggling to get by, especially if they have kids. There ain't much room for any luxuries in that range.

Wags

I believe that the government classifies $25 to $75K as the middle class. Anyone know for sure?

Like I said, in California, that is about right!

Charlie

Yeah the govenment probably does classify it that way--but you have to ask what are their criteria. I think they want folks to feel good (or not feel bad) but it doesn't reflect reality.

Charlie:

It's true here on the East Coast as well.

Wags

here is a way to llok at it.

Upper-upper class. "Old money." People who have been born into and raised with wealth.

Lower-upper class. "New money." Individuals who have become rich within their own lifetimes.

Upper-middle class. High-salaried professionals (i.e., doctors, lawyers, corporate executives).

Lower-middle class. Lower-paid professionals, but not manual laborers (i.e., police officers, non-management office workers, small business owners).

Upper-lower class. Blue-collar workers and manual labourers. Also known as the "working class."

Lower-lower class. The homeless and permanently unemployed, as well as the "working poor."

Wags - I have to think all states are different but I make below 75K and have 3 kids. We get by. My kids have new clothes, play sports, have bikes, get to go out to eat on occasion so I would not call it struggling.

I think the middle class wage in the Midwest would not compare to the left coast or right coast.

Well you are probably right Basedude. There are considerable variables across all 50-states.

oops, I have 4 kids.

sure, 75K in St Louis Mo is a decent living.

75K in Cali is probably poverty level.

I can buy a 3 BR all brick here for under 150K with attached garage and full basement.

What would that run me on the coast? When I lived in Md 10 years ago I could not touch a house like that for 150K.

Even within your categories there is large variation. I know some doctors (GP's and Pediatricians) who are not upper middle. With HMO regulating fees, government payments decreasing, etc. some are making less than $75,000. I also know several starving lawyers (perhaps not a bad thing!). Unless you get in with a large firm or fill some special niche the supply of lawyers is greater than the demand. I know one who had been in private practice who now gets by selling Amway products.

Basedude:

A house like that would probably fetch between $400,000 to $700,000 depending on the location.

yes they were quite general. I don't think you can really answer this for the entire country without just producing a mean with a variance.

a lawyer peddling amway. man, it's gotta be hard for him to find friends.

i hope bass is right...otherwise, lower all the way!

Bassdude

In Orange County California, no basement, but that size house would easily be 700 to 900K and more inland maybe 550 to 700K!

Charlie