I find it difficult to believe that someone in the top 5% can honestly consider themselves “middle class” (note: I’m in the top 5% myself, so not griping about anyone making more than me).
It seems to me that if you’re going to break out the tiers into lower/middle/upper, middle should be in the MIDDLE. While I know a lot of people who make plenty of money have equivalent bills to pay (in most cases, expenses seem to rise to meet income), how much of that is really “middle class” stuff? As one example, I pay a LOT more in car loans than most people I’d think in the median 50% of the population. I clearly don’t need to – that 50% doesn’t lack transportation – they simply pay a lot less for it than I’m willing to.
I think a lot of people here are conflating the middle class with the majority of the wealthy or upper class by simply assuming “wealthy” means “doesn’t have to work a day for the rest of their lives to continue to own 5 cars and 3 houses”.
My personal opinion is that if you buy luxury car brands when they’re brand new (or 1-2 years old if you hate the new car depreciation), can afford to fully fund your retirement to the point where you’ll be able to maintain your standard of living purely on your investments alone and SSI will simply be “mad money” post retirement, can go on major vacations 1-2x per year, you’re probably wealthy (my situation).
If you drive used non-premium brands for the first half of your working career, and new non-premium brands during the back half of your career, are able to fund your retirement adequately enough that SSI will be needed, but will be enough, can do the occasional decent vacation once a year (but maybe only afford a really excellent vacation like a cruise or hawaii vacation once or twice a decade), etc, you’re probably middle class. Because that’s really the guy in the middle.
If you’re better off than 19 of 20 people that you meet on the street, you probably aren’t in the middle of anything. If you’re better off than 98 of 100 people that you meet, you’re definitely not.
