Reply to Can we stop referring to households making $200 or 300K a year as "middle class"?

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Reply to "Can we stop referring to households making $200 or 300K a year as "middle class"?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We went from 150k to 450k, the only thing that changed was a larger new house, our disposable income is the same.[/quote]

Sounds like a silly choice to me but YMMV[/quote]

Sounds ok to me, would it be better to buy a new car[/quote]

Assuming that they were spending some money on housing before, their housing expenses are now more than 1/2 their take home pay.   That seems like a very bad decision.

A good decision might be to increase the mortgage by a couple thousand a month, and use the rest for increased savings towards retirement, college etc . . . , and maybe treat oneself to something like a vacation once in a while.  That's very possible on $350K.  [/quote]

Yeah PP is either lying or majorly house poor.  I did some really rough calculations on those two incomes to see how take home pay might differ- granted actual taxes depend on many factors, this is just based on an online calculator tool for a married couple living in MD, doesn't include deductions for 401k, medical, etc.

$150k
- take home monthly pay: ~$9k
- max mortgage based on 30% rule: $2700
- income after mortgage: $6300

$350k
- take home monthly pay: ~18k
- so if their disposable income after mortgage is still $6300, that's a whopping $11700 mortgage, or perhaps less if she was factoring in the massive bills from heating/cooling such a big house.

Even if these numbers are off a bit, that is still nuts. [b]Which is why I call BS.[/b]

[/quote]

good point. [/quote]

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