As an American I feel like everyone is middle class
I love how everyone describes themselves as middle class and politicians love them. I used to work in a bank branch and I would talk to people all day long about their finances. I would be tickled to death when someone I talked to who was earning $200,000 year called themselves middle class. Because I would deal with people all day long who made $20,000 – $45,000 a year who were also calling them selves middle class.
There is a big disconnect in America on who the middle class are. I think its important to understand who this group is. I know for me personally it helps put everything in perspective when we hear the word middle class thrown around.
Where do we start to measure from?
According to the US Census Bureau the Median Household income is $51,286 in 2015. This means that if you line up all the households in a row from least income to the most you’ll find this number right in the middle. That means if you and your spouse make $30,000 a year each, your better off than half of American’s by income.
Who is the this group of people?
Now this is how I would define middle class. Simply take 50% above the median and 50% below the median and everything in the middle, is the middle class. This means upper middle class would cap out at $76,929 per household. Therefore the lower middle class would bottom out at $25,643. This really puts it into perspective with me when I have conversations with self described middle class people who earn six figures. I hope this surprised you as well.
However, the middle class can be very elusive because the U.S. is a very big place. For example if you lived in New York City your middle class income might feel like poverty compared to Kansas were I live. The Pew Research Center put together and amazing calculator to find out exactly where you stack up based on a number of different demographics. I encourage you to check out the calculator. I’m really bad about comparing my self and I find these calculators fun just to see where I stand.
I hope this post helped you see who the middle class is. I want to know your thoughts? How do you feel about these definition of middle class? Do you agree? I would love to hear from you.