QOTD: Your Social Class

[atlasien]

I just ran across a fascinating poll by the New York Times as part of the "Class Matters (http://www.nytimes.com/indexes/2005/05/15/national/class/index.html)" series.

http://www.nytimes.com/packages/html/national/20050515_CLASS_GRAPHIC/index_01.html

I came out as Upper Middle Class due mostly to my Master's degree.

I think a lot of American people on the internet think they are of lower class than they actually are. If you have a computer, an internet connection and the education to use it, you're already pretty far ahead in the game.

They're using a pared-down, mathematical version of class that doesn't include race or culture, but it's a good jumping off point.

[Vetrean]

Hmmm...I'm wondering about how much debt affects that.

[atlasien]

Debt would affect your net worth. If you have a $20,000 car and a $15,000 car loan, your net worth is $5,000.

[Vahz]

This can't be right. I'm in the top fifth except for "wealth" which is upper middle unless I'm not calculating it correctly.

[Vetrean]

Net worth is everything you own?

I'm not even trying to figure that out, then.

[Vahz]

If it's everything you own, then I am in the right catagory.

All i need to do now is get a monocle, a top hat, and act all snooty.

[RebelAzn]

According to the graphics, I guess I am way better off than most Americans. However, it sure does not feel that way around this area when I constantly having to look at 1+ Million dollar fix upper homes.

[atlasien]

Yes... but $1 million+ homes are very big and visible, cheap cramped rental apartments are not.

[cattygurl]

I'm squarely middle-middle class.

[RebelAzn]

Yes... but $1 million+ homes are very big and visible, cheap cramped rental apartments are not.

Well we are not talking about huge. You are looking at 2000 Sq Ft 3 or 4 bedroom with 2.5 bath. This is a normal house with outdated stuff in a middle of the road neighborhood.

[DijabutiA]

Hah, I eeked up into the 5% percentile for income. Talk about exponential change in income [/nerd]

[cattygurl]

Rebel, places like Cali isn't really a good place to look at real estate as part of your wealth/assets, because the prices are fucking insane.

[DONKEY]

lol bachelors degree is worth shit

[RebelAzn]

Rebel, places like Cali isn't really a good place to look at real estate as part of your wealth/assets, because the prices are fucking insane.

Yes it is. However, real estate is major part of anyone's net worth. If you are not in one, you should get into one. Real estate is a good investment especially in the Bay Area. I guess cost is relative to where you live. However, there are probably more rich people here than anywhere in the country.

[ZhuBaJie]

Net worth is everything you own?

I'm not even trying to figure that out, then.

no. net worth is everything you own minus everything you owe.

so something like:
property value - mortgage owed
car value - car loan (this might come out to be a negative value)
savings + mutual funds - credit card debt

so on and so forth. add up all your financial assets and real estate, plus value of any major items you own like your car, and then subtract all the debt you have. i wouldn't bother trying to add up the value of all the things you own, like stuff you have lying around at home, unless you've got some really expensive furniture or a diamond ring or something like that.

[ZhuBaJie]

lol bachelors degree is worth shit

are we looking at the same chart? because it places bachelor's degree in the top fifth, which i don't know how accurate that is.

[DONKEY]

i mean that it's worth a lot on the graph
it should really be placed in the "middle" rung.
this type of thing is always impossible to calculate quantitatively
what does it mean if youre a chef (lower middle), got to 10th grade (bottom fifth), but your income and wealth are both in the top fifth?

[Ike]

Upper middle, but it's all the parents' doing so far. We'll see how I turn out in a few years. o.O

[DijabutiA]

Yes it is. However, real estate is major part of anyone's net worth. If you are not in one, you should get into one. Real estate is a good investment especially in the Bay Area. I guess cost is relative to where you live. However, there are probably more rich people here than anywhere in the country.

HAHAHAHHA, You hear that Poisonedrice? INVEST in real estate! [/inside joke]

[ZhuBaJie]

i mean that it's worth a lot on the graph
it should really be placed in the "middle" rung.
this type of thing is always impossible to calculate quantitatively
what does it mean if youre a chef (lower middle), got to 10th grade (bottom fifth), but your income and wealth are both in the top fifth?

it gives you a percentile average on the left side. and the percentile are broken down into 5 levels, so just assume a 20% interval for each level.

[cattygurl]

Yes it is. However, real estate is major part of anyone's net worth. If you are not in one, you should get into one. Real estate is a good investment especially in the Bay Area. I guess cost is relative to where you live. However, there are probably more rich people here than anywhere in the country.

I should have clarified more- most people are up to their ears in debt, and foreclosures are really fucking people over. If you have a fixed percentage mortgage with low rates, chances are, your real estate is working for you. If you've got some screwy mortgage that they have nowadays, you could very well be fucked. Big time.

[RebelAzn]

I should have clarified more- most people are up to their ears in debt, and foreclosures are really fucking people over. If you have a fixed percentage mortgage with low rates, chances are, your real estate is working for you. If you've got some screwy mortgage that they have nowadays, you could very well be fucked. Big time.

Agreed Catty. Those Option ARM and Neg Am loans are killing people. This is reason why I broker my own loans. If anyone here want some advice on a refinance or purchase, give me a holler. I will look at your mortgage and if I can't do better for you, I will let you know.