Anonymous
Post 06/30/2020 12:45     Subject: Middle class life has me completely baffled
Anonymous wrote:I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?


If all of these are true you should be saving a ton of money.
Anonymous
Post 06/30/2020 12:44     Subject: Middle class life has me completely baffled
No one who can afford that list of things in the DMV is middle class. That’s the way it is these days. The superrich have hollowed out the middle class.
Anonymous
Post 06/30/2020 12:41     Subject: Middle class life has me completely baffled
OP. I feel you. It is harder than you think on that kind of salary.

Just looking at your post...maybe you are oversaving on retirement if you are maxing out? And maybe you don't need new clothes all the time?
Anonymous
Post 06/30/2020 12:40     Subject: Middle class life has me completely baffled
Your definition of middle class =\= DMV definition of middle class
Anonymous
Post 06/30/2020 12:39     Subject: Re:Middle class life has me completely baffled
No one in this area making $180,000 is living like a king without getting help or living on the edge. You're not doing that and good for you.
Anonymous
Post 06/30/2020 12:37     Subject: Middle class life has me completely baffled
Anonymous wrote:I make significantly less than you do ($115k HHI) and one a house worth probably $600k. How I did it is I bought a condo with a 3% down payment (this amounted to less than $15k with closing costs, etc), did tons of low-cost improvements, and then sold it when the market was hot and got lucky on that. I never would have been able to save up the down payment money otherwise. Just worked my way up the real estate ladder with some sweat equity and some luck.

My parents paid for me to go to state college (which is huge) but other than that I had no family help.


Oh and before anyone asks, this was all within the last 4 years. I do feel you, though. It is really tough and I’m not sure that I would recommend the route that I took to anyone...because again it involved a lot of luck. Sometimes condos are a poor investment, but in my case it happened to work out.
Anonymous
Post 06/30/2020 12:33     Subject: Middle class life has me completely baffled
I make significantly less than you do ($115k HHI) and one a house worth probably $600k. How I did it is I bought a condo with a 3% down payment (this amounted to less than $15k with closing costs, etc), did tons of low-cost improvements, and then sold it when the market was hot and got lucky on that. I never would have been able to save up the down payment money otherwise. Just worked my way up the real estate ladder with some sweat equity and some luck.

My parents paid for me to go to state college (which is huge) but other than that I had no family help.
Anonymous
Post 06/30/2020 12:28     Subject: Middle class life has me completely baffled
I happen to know that several of our neighbors are in massive amounts of debt, including large mortgages with home equity loans for their renovations. So don't assume everyone's doing just fine, and especially not that everyone is maxing retirement and saving any money. And also I know at least two who got large down payments from their parents.

You don't have to keep up with the joneses, OP. Though I feel you on the expense of a house.
Anonymous
Post 06/30/2020 12:24     Subject: Re:Middle class life has me completely baffled
Generational wealth. So no student loans, help with down payment, etc.
Anonymous
Post 06/30/2020 12:23     Subject: Middle class life has me completely baffled
Some are talented with money management. Many have family money, at least to start, or are up to their nose in debt.
Anonymous
Post 06/30/2020 12:22     Subject: Middle class life has me completely baffled
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?


We are in a similar HHI bracket and borrowed against DH's 401K for our downpayment. small house for $720,000 a couple of years ago in N Arlington.



Census data quotes median HHIs though, not averages. Median HHI isn't as high as you think.



Sorry, quotes the wrong response. It was a meant for the one above.
Anonymous
Post 06/30/2020 12:22     Subject: Middle class life has me completely baffled
Anonymous wrote:
Anonymous wrote:I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?


We are in a similar HHI bracket and borrowed against DH's 401K for our downpayment. small house for $720,000 a couple of years ago in N Arlington.



Census data quotes median HHIs though, not averages. Median HHI isn't as high as you think.
Anonymous
Post 06/30/2020 12:21     Subject: Middle class life has me completely baffled
Anonymous wrote:I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?


We are in a similar HHI bracket and borrowed against DH's 401K for our downpayment. small house for $720,000 a couple of years ago in N Arlington.
Anonymous
Post 06/30/2020 12:19     Subject: Middle class life has me completely baffled
Anonymous wrote:I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?


Yes, but this is not taking into account all of the people in the area that are unemployed, underemployed, on disability, etc. . . Most of the professional 'middle class' people you know are probably making a lot more. Also, there are those that don't max out retirement accounts. Also there's a lot of family help in this area.
Anonymous
Post 06/30/2020 12:16     Subject: Middle class life has me completely baffled
I am completely perplexed as to how so many people can afford a 'middle class' lifestyle in this region where they own a decent home, buy new clothes all of the time, drive a new car ever 5 years or so, save for college, pay for childcare and have money left over for savings. We make $180HHI. Not the highest for the region, I know, but according to US census data for the areas of the DMV, in-line with the crowd. We max out our retirement accounts, live in a modest $1700 per mo apartment, and have no debt. We drive a very reasonably priced Mazda 3 that is paid off. We are trying to save for a house, but by the time we factor in the cost of living for everything and sock away savings for retirement, there isn't a whole lot to save per month for a house. At the rate we can save liquid cash, it'll take quite a long time to have a downpayment on a modest place that costs less than $600k. We don't have kids yet though. But for the life of me, I have no idea how in the hell people are affording kids, homes, cars, and new clothes all of the time in this area. Are people really that much in debt or are saving very little for retirement?