Are you REALLY a middle income household?

[~Ash~]

I'm surprised that we are middle class - it certainly doesn't feel like it at times! I've been hanging out for a year now to get back to work to make things a bit easier - it's a bit reassuring knowing that we aren't the only ones struggling.


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[Astrid]

Between lower and middle. Not sure of FTB comes into it, but if so, then just under middle.

It is interesting, as we have been struggling, especially when on DH's income only. It was hard to get people to understand as they think DH is on a good income (mostly MIL and DH's single brother). It goes to show how the number of people in the household affects it all.

[Olive]

DH has novated lease as part of gross salary, do include that or is it gross money income?

[~Kim~]

I was shocked, totally stunned, at how low we are on that scale. I feel like we’re really rich and doing just fine??? So interesting, thanks for posting MD.

Me too. And we're living in the middle of nowhere to feel like that.

[Floweryfields]

Middle income one person family! Does that count?

[Catastrophic]

I'm in the 20th percentile. Just under the 2nd average. . .

[onthefly]

30th! I included FTB in ours. We live pretty comfortably within our means I guess. Can't afford a house, but hey we have a roof
Thanks MD, that's interesting.

[*Danni*]

Wow, low income earners here! Living on DH's wage only so it has been tough for sure, but we do have a lot of money tied up in our house. Sorta makes me feel a little better and worse knowing where I am on the 2nd layer chart lol cos I didn't think we were that low end but now I feel kinda validated for feeling like we do really struggle sometimes!

Really really interesting, thanks for posting!


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[luna moth]

Low side of middle. I thought we were bang in the middle, so I am surprised. We have an amazing life and I never feel like any of us are missing out.

[AnyDream]

It's important to realize this is just one measure of income distribution, and not necessarily used to determine wealth or wellbeing. The social policy people who use these figures are well aware of the sorts of pressure points that individuals experience, like diffrences in cost of living etc. I started the thread mostly because there has been lots of debate in the past about what exactly is a high income and what is middle income, which of course is always going to be relative to many other things.

[Artechim]

DH has what I would have considered a high income but we are in the 30th . I think our tax rates are higher here, plus atm we are paying an extra 10% tax until his student loan is paid off - bring on May 2012! Or maybe we have too many kids lol

[AnyDream]

It's been really interesting reading everyone's replies, especially those who have commented how surprised they are at where they sit on the scale. Of course there are a whole heap of other things that feed into how many $$ you've got left over once all your main expenses are met. Childcare, transport and medical are all areas where I suspect we're paying a lot mroe than the "average" family in our demographic, that's probably where the pressure is in our budget.

[Novella]

interesting MD! We are currently on the 4th quintile but when this bubby arrives we will drop to smack on middle income. I always thought we were middle income earners, not towards the higher end. My net income is not great but due to generous salary sacrafice my gross income is quite good so when I say how much i earn it doesnt sound like much but in reality the money in my hand is equivalent to about an extra $17000 on my net income without salary sacrafice ITMS

[Beach Mama]

Mmm we are between the 4th and 5th with my only working p/t. If I went f/t it would be on the 5th but we don't feel like we are. We are very comfortable, have recently bought an investment property, could live off DH's income without me working but I wouldn't say we are high income earners or anywhere near wealthy?? We drive "middle class" cars but don't have a huge amount of debt I guess so that makes a difference I think. I am a bit surprised and would have thought we would be more like on the high end of middle class, however really whatever you call it, it really is all relative to your personal situation I guess and we know we are really lucky and have worked pretty hard to get to where we are now.

[JLeigh29]

DH told me recently (don't know where he heard it or figured it out) that his income puts him in the top 15% of wage earners. However, to be in the top 8% he'd have to earn another $100 000 a year, and well over that again to be in the top 5%. In other words, there's a big difference at the top end of the scale! We are comfortable, more than comfortable, but don't have money to throw around - his income is boosted by salary sacrifice too. We don't earn enough to put us over the 'high income thresholds' that the government uses as cut offs for rebates and discounts e.g CCB etc (about $120 000 I think).

I also know people who spend $50-100 a week on soft drinks, chips, chocolate, lollies etc and $80-150 on alcohol and ciggies. We spend that amount or less in a year if we're lucky! But we'd average $50-100 a week on holidays and meals out/takeaways (one nice meal a month and a couple of strictly budgeted holidays). It's all about choices, budgeting and preferences.

[Beach Mama]

However, to be in the top 8% he'd have to earn another $100 000 a year, and well over that again to be in the top 5%.

Ok so maybe we wouldn't be in the 5th with me working full time but still sitting somewhere in between like we are now!!

We are a bit like you too with choices in that we don't smoke (anymore!) or buy hardly any junk food, but we do have takeaway and nice meals out, holidays etc. All relative I guess and you choose where you will spend your $$ based on what is important to you.

[Olive]

We're middle class, that's calculated without FTP and my small income. We have no debt except our mortgage in which we pay more per month into. We're also comfortable and feel we live within our means!

[forshelby]

Reading that formula gave me a headache. But I don't need a fancy formula to know I'm in the red. Seriously, I think we have slipped into poverty. The crazy thing is we own nice things from better days gone by. I look all put together and drive a nice car but am struggling to hold onto it.