What do middle class spend their money on?
Housing Costs:Rent or mortgage payments, property taxes, homeowners' insurance, and maintenance costs are significant expenses for the middle class. Utilities:Monthly bills for electricity, water, gas, internet, and other utilities are essential expenses for maintaining a comfortable lifestyle.
“For many, that means investing in a modest home, a reliable car, and ensuring a good education for the kids. Building a financial safety net through retirement savings and insurance is also a common priority.”
There is no official financial standard for what constitutes middle class. For most it's more about a standard of living—including owning a home, being able to afford to pay for a college education for your kids, and having enough disposable income to take a family vacation.
“In fact, some of the most expensive items the wealthy spend their money on include private yachts, art collections, exclusive celebrity experiences and top-of-the-line home electronics,” she explained. “No matter what it is, if it's expensive and luxurious, the wealthy will find a way to buy it.”
U.S. Census data reported that the median household income was just under $75,000 in 2022, and Murray expanded on how this research adds to the argument that being "rich" can be relative to where you live.
If you're making between $43,350 and $130,000, you're considered middle class. If you're earning $130,000 and above, you're likely considered upper class.
Income data released by the U.S. Census Bureau shows that the 2021 median household income was the highest on record at just around $65,000.10 Pew defines the middle class as those earning from two-thirds to double the median household income.11 This Pew classification means that the category of middle income is made ...
| Percentile | Average Household Income 2019 | 2019 Median Savings |
|---|---|---|
| 20-39.9 | $ 35,600 | $ 2,050 |
| 40-59.9 | $ 59,000 | $ 4,320 |
| 60-79.9 | $ 96,800 | $ 10,000 |
| 80-89.9 | $ 153,500 | $ 20,000 |
| Lower income | Upper income | |
|---|---|---|
| 2023 Middle-Class Salary | $38,133 | $114,400 |
Even so, about 6 in 10 Americans are failing to meet their basic needs, with their incomes falling short by almost $14,000 on average in 2022, LISEP noted. That underscores the struggles that many households are facing after two years of rising inflation, which has pushed up costs for everything from food to rent.
What are the 3 things millionaires do not do?
- They don't have a wallet full of exclusive credit cards. ...
- They avoid giving large gifts to their children, or supporting them financially as adults. ...
- They don't spend hours managing their investments.
| Spending Area | 2022 | 2021 |
|---|---|---|
| Food | 13.8% ($9,343) | 12.4% ($8,289) |
| Housing | 33.3% ($24,298) | 33.8% ($22,624) |
| Apparel & Services | 2.6% ($1,945) | 2.6% ($1,754) |
| Transportation | $16.8% ($12,295) | 16.4% ($10,961) |
The answer to the riddle is "nothing." Nothing is greater than God. Nothing is more evil than the Devil. The poor have nothing. The rich need nothing.
Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744. Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class.
The Sept. 8 report said the minimum annual income required in 2023 for a family of four to be middle class in California is $69,064. Alabama and Arkansas both required the lowest minimum income to be considered middle class, at $51,798.
Based on Pew's analysis, a three-person household would be considered low-income if they're bringing in less than $52,200 a year. This group makes up a significant chunk of the U.S. population, with about 38% of households making less than $50,000 in 2021.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
| Bracket | Average annual wges |
|---|---|
| Top 0.1% | $3,212,486 |
| Top 1% | $823,763 |
| Top 5% | $342,987 |
| Top 10% | $173,176 |
In this analysis, “middle-income” adults in 2021 are those with an annual household income that was two-thirds to double the national median income in 2020, after incomes have been adjusted for household size, or about $52,000 to $156,000 annually in 2020 dollars for a household of three.
If you had an income of $200,000, that would put you in the top 12% of household incomes or the top 5% of individual incomes in 2022. Though I prefer household income over individual income, no matter how you cut it, $200k a year puts you on the higher end of the income spectrum.
Is $50000 middle class?
By the Census data, it means that if you earn between $50,000 and $150,000 a year, you are considered middle class. It's a pretty straightforward answer, but it isn't particularly helpful if you're trying to climb up out of a lower income bracket into the middle class.
Some sources define upper middle class as anyone who's making a lot of money but hasn't quite crossed the threshold to become truly wealthy yet. These individuals often have a net worth of at least $500,000 to $2 million.
Average household earnings in 2022 were $94,003, while average total expenditures for the year were $72,967, according to the Bureau of Labor Statistics' Consumer Expenditure Survey. This included an average of $24,298 on housing, $12,295 on transportation and $9,343 on food.
American households, on average, have $41,600 in savings, according to data last collected by the Federal Reserve in 2019. The median balance for American households is $5,300, according to the same data.
| Average U.S. savings account balance | |
|---|---|
| Median bank account balance | Mean bank account balance |
| $5,300 | $41,600 |
