3 sad signs that you are middle class and always will be

olyrun wrote:

You always do what your spouse tells you.

You always do what your parents tell you.

You always do what your boss tells you.

Wow. This post hurts. It hurts because it is true. Yikes. The only glimmer of hope if these three statements can be viewed as a spectrum and not a binary. Then people could say well 90 percent of the time I don't do what my parents tell me to do, then that would feel better than someone who does 100% of what their parents tell them to do. Same goes for boss and spouse.

Primo Numero Uno wrote:

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

Using a credit card is way better than debit or cash. Way more secure and most credit card companies do a good job protecting you believe it or not. If you lose your wallet it's easy to cancel your card, getting cash back, not going to happen. And if I can get pts or cash back on money I'll spend anyways more power to me.

Now if you said you carry a credit card balance each month you may have a valid point. But those who always pay their card and never overspend due to their plastic money are fine. Most very rich people use credit cards.

i completely agree. Even apple pay is using your credit card in one fashion or another.

i would also argue that "points" or "miles" are cute. i have over 1 million points with marriott and a million on aa. That will provide me and family with free marriott hotels (category 9) for 3 week vacation anywhere in the world. we have done this 3 times before in trips to south america and europe. we fly business class for free to said trips using points as well. i find this more than "cute". its not a free cup of coffee, its a killer vacation basically free.

You are supporting the OP's point. No one ever said using credit cards for points was a bad idea, just that it was middle class.

Stuck in the middle class wrote:

i agree................ wrote:

i completely agree. Even apple pay is using your credit card in one fashion or another.

i would also argue that "points" or "miles" are cute. i have over 1 million points with marriott and a million on aa. That will provide me and family with free marriott hotels (category 9) for 3 week vacation anywhere in the world. we have done this 3 times before in trips to south america and europe. we fly business class for free to said trips using points as well. i find this more than "cute". its not a free cup of coffee, its a killer vacation basically free.

You are supporting the OP's point. No one ever said using credit cards for points was a bad idea, just that it was middle class.

I guess then we need to differentiate between using credit cards for convenience and reaping the pts benefit or using your credit card to get pts. I use a credit card because it is the easiest and safeest form of payment and would do so even if there wasn't rewards but the rewards are a nice benefit and I do choose cards based on what rewards cash back will benefit me the most.

I think people are missing the definition of what middle class is. Middle class is NOT BEING ABLE to afford nice things like a new car. Would you argue a person worth $12M, but drives a 10 year old camry, middle class? No, you would say he is very wealthy and lives well below his means. On the other side--a person who makes $500k a year but is in debt. I would argue he is much closer to Middle Class than the example above as he cannot afford any more things.

FWP: bickering about upper vs middle class.

For some perspective check out Global Rich Calculator.

If you're middle class in the US, you're more fortunately than most of the world's population.

http://www.globalrichlist.com/wealth

could be worse wrote:

FWP: bickering about upper vs middle class.

For some perspective check out Global Rich Calculator.

If you're middle class in the US, you're more fortunately than most of the world's population.

http://www.globalrichlist.com/wealth

Why would we compare ourselves to the world in terms of success? That's like Roger Federer comparing himself to me.

Freaking India still has sewage running down their streets. What an embarrassment of a country. Our standards a bit higher.

So cute, indeed!

https://www.theguardian.com/world/2015/nov/24/billionaire-earns-first-class-travel-for-life-by-putting-modigliani-nude-on-amex

Real Lyfe Nobodee wrote:

L L wrote:

Now, a dealer that offers 0% financing gets money from a financing company affiliated with the auto company.

Yes, there is a cost to that financing but that is put into their overall marketing budget or cost of doing business.

It doesn't change the profit margin on a per car basis.

You think they just eat the cost?! LOL!!!! Sucker. They are adding to the cost to make up for financing. Nobody is taking away from their profits. I used to work in sales...

I cringe every time someone says, "I got 0% financing!". No you didn't. You got shammed. HAHAHA!

We're really not saying anything different.

Ok the financing cost is baked into the sales price.

So you might as well take the 0% financing over 5 years vs. paying the whole thing up front.

Unless you think they will drop the price if you pay cash instead of doing their financing.

Then you need to do a present value calculation to determine your number to make it worth handing over a big wad of cash vs a little oat a time over time.

And that only matters if the dealer would accept that lower price. And my argument is that they won't.

You normally negotiate the price first, and how you pay for it second.

If the price has been agreed to, you then take the 0% if it's available.

And you still might come ahead with financing because you are a smart person and you would be investing that 20k and making more off that investment than any interest cost, right?

HAHAHA

Anyone that understands financing and net worth should know how to use debt to your advantage.

Borrow at low rates, keep your cash invested in high returns.

You'll be still stuck in middle class if you do t learn how to leverage debt.

You think Trump doesn't have debt? Or even Mark Zuckerberg?

You have your money. I have boxing and Krav and I can fight fast, with high endurance, viciousness, and ability and muscle memory to continue to battle even thru real pain and brief unconsciousness. You don't want to meet me, m0th@rfuck@r

Give me a break.! If you are down to sucking the last little investment income out of the equivalent of a car loan, you can't afford to be living on that little a buffer. For my thinking, have a little cash reserve and pay for the thing with cash, using it to negotiate a good price, at the end of the day or the end of month, or whatever. If you're talking abot using debt in a large scale to scale a business, that's one thing. But in terms of a car, why bother.

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

I don’t know. I make over 200k, which I believe puts me a few ticks above the 50th percentile.

I do all of those things.

Do you people still not have chip-and-pin debit in the US?

I always laugh when I visit there and people are paying for coffee with Visa and providing a signature like it’s the 1970s. ???

asdasd wrote:

He's right! The Kardashian's don't do any of this.

The Kardashian’s what don’t do any of this?

Dave Ramsey wrote:

1. You have a car payment and think that's normal

2. You live from Thank-God-It's-Friday to Oh-God-It's-Monday

3. You use a credit card to get "points" and "miles" (haha, so cute!)

Any more?

1. PR for 5 km is only sub-14

2. Earning only $250,000 p.a.

3. Wife is only a 9/10

having a 401k pretty much screams middle class.

To answer the original question I would add marrying your wife because of her personality.

Aww. Looks like someone can't be responsible enough to save and pay cash for things. Still have the "I need it NOW" attitude from when you were three years old?

Kemnend wrote:

3) you don't know what an IRA or Roth IRA is and the differences

Roth IRA caps out at like $130k individual or $200k household married. That's middle class.

Rich people make too much to contribute to a roth ira

verty wrote:

maffeboner wrote:

you buy a home on less than 20% down payment

you don't max out your 401K

you have an emergency fund, and think that's all you need

you validate your minimal net worth by your ridiculous obsession with travel

you don't pay for your kids college

your wife is involved in an MLM scam

Wealthy people don't need a 401K. If most of your income comes from your salary you are middle class.

This is true. And ironically, 401K money is 100% taxable when cashed out by you or your heirs. Every dollar in a 401K account is worth less than a dollar kept outside a 401K.