In what range of money per year would you consider to be a "comfortable upper middle-class household income?"

Question

Between $X and $Y is the range of total annual income you would say most upper middle class families earn in order to sustain that sort of lifstyle.

Upper middle class people generally own nice homes in fairly well to do neighbourhoods. They drive at lest two late model vehicles. They educate their children in private schools. Upper middle class families go on several foreign and domestic holidays a year. They may own a summer cottage or other get away property. And they generally eat dinner out as family at least once a week. If the average family is, say, three kids, and a mother and father, and let's also say they reside in a smart leafy suburb of a large Eastern city like New York, Boston, Philadelphia, or Washington. Now, those are the variables. ON AVERAGE, at what annual pay scale would a typical family unit with the above listed lifestyle need to earn per year to maintain such a comfortable lifestyle? Please, again, I said on average. I fully realise every situation is unique, and every family is different, and every city has different costs, blah, blah. Please, just look at the question as given, and submit a reasonable answer. I am fully aware of differences and that this is just a crude survey. Thanks!

Answer 1

Based on your assumptions, I would assess gross salaries of the spouses would be in the $300,000 to $450,000.  That is a low ball figure.  Upper middle class is professional family arrangement with advanced education in the household.  

Answer 2

That depends on where one lives and how one lives. Suppose someone makes $300,000 a year but lives modestly, has little debt, does not do all the things you mention above but is planning very well for their future and retirement. Another family makes $125,000 a year, lives in a great home and in a great neighborhood, the kids go to private school, etc.  but has no savings and a ton of debt. Which family is truly upper-middle class? Is it lifestyle, is it income, is it accumulated wealth, is it a combination of them all as part of a complicated formula? I don't think an income range as you ask quite cuts it.

Answer 3

hello - if they live in a nice leafy suburb of one of those cities, they may have good enough public schools so as not to have to go private.  i have to say, my parents made decent money, but we were by no means rich - however, we paid cash only (or paid of credit bills monthly), so lived well within our means, we did go to private school, boarding actually as my parents felt it was the best education for us, we went to great private colleges as well, no financial aid as they had saved carefully for that as well.  our house was nice and large but not a mansion, but no pool, no country club membership, no fancy cars, many overseas vacation, but my parents are immigrants, so it was to see family.  i think they made about 150K combined then, this would have been from around 1980-1990 when we were in high school and college.  now my friends who make around 300-400K with two kids in the suburbs all seem to be struggling, they have huge debt, but as you point out they have private schools, very late model cars, very large houses and many many vacations.  I think you can be upper middle class on 200K if you dont do everything on credit, cash is king (we live very well on 200K, but have no debt at all.  we dont drive the latest cars, but now everyone tells us how smart we are to own them and to have a hybred.  but you can be poor on 500K if you have all the latest things, tons of debt and live beyond your means.  so really, it is all about whats important to you.