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<p>[Make</a> $32K? You’re in the richer 50% - MSN Money](<a href=“http://articles.moneycentral.msn.com/Taxes/CutYourTaxes/make-32k-youre-in-the-richer-50percent.aspx]Make”>http://articles.moneycentral.msn.com/Taxes/CutYourTaxes/make-32k-youre-in-the-richer-50percent.aspx)</p>
<p>Relatively speaking, CC has a lot of the top 10% here.</p>
<p>Nice little reality check here DadII. </p>
<p>It is easier to focus on what we don’t have than see what it is that we take for granted. I had a selection of name brand cereals to choose from, I’m drinking an expensive brand of coffee, and we have a computer. There are a lot of people for whom these would be luxuries. Good reminder.</p>
<p>Remember that this includes all the teenagers and people who are mere part-time workers - it says it was measuring the income of all taxpayers, not the income of all people who bring home the entirety of family bacon. Also, if two people make 30k each, that’s a 60k household income - which is worth a lot in some parts of the country. 40k, even, is a truly reasonable family income in, say, Akron, Ohio.</p>
<p>Median household income is much higher.
In our county- projected median household income for 2007 using 1990 and 2000 data is $67,719</p>
<p>good point E4. I think the median method is better here. The % could be influenced by many factors.</p>
<p>However, while incomes grew, poverty rate also grew.
[Median</a> income rose as did poverty in 2007; 2000s have been extremely weak for living standards of most households](<a href=“http://www.epi.org/content.cfm/webfeatures_econindicators_income_20080826]Median”>Median income rose as did poverty in 2007; 2000s have been extremely weak for living standards of most households | Economic Policy Institute)
It is good to keep perspective.
I am currently carpooling to school with a woman my age, who is homeless.
She was living in a federal subsidized apt, but when her apt build was sold, there were some paper work glitches with new owners. She had her share of the rent, however, the subsidized check was held up and she was evicted because she could not pay what the total rent check was.
The way I understand it- the subsidy will not pay what the apt manager says she still owes because she was not in residence, but she is not able to get another apt, until she both pays that off as well as finds money for first/last damage for another apt.
With turnover in buildings I expect there are cases like this all over the city.</p>
<p>Dad II…that should make you feel a LOT better about your $10,000 per month income.</p>
<p>Physicsmom, I am not so sure 40k is a reasonable income in Akron. It certainly is if there are two wage earners in the family, each earning that wage. However, I live in an area similar to Akron … and I can tell you that a 40k income makes rent/food/transportation/health care/etc. very difficult to afford. You have to realize that there is no adequate public transportation in areas like Akron. Jobs are hard to find, making the average commute longer and thus more expensive than it might otherwise be. While rent may well be less than in other areas, even a basic apartment will take up a good portion of the paycheck. With fewer employers footing the bill for healthcare, and with copays for healthcare increasing, the paycheck is further eroded. Throw the fact that employers are no longer funding pensions adequately on top of that … and the 40k wage earner needs to put money into retirement funds, too. I can’t even imagine how difficult it must be.</p>
<p>And this makes an elementary school teacher living on $32k a year in New York City any less insolvent…how?</p>
<p>Yeah, if you aggregate numbers, $45k sounds great. I imagine people living in Bumble****, Idaho don’t understand how people in New York have difficulty living on $60k a year.</p>
<p>I think what the article shows us is that most of us reading this are pretty darn lucky in the scheme of things.</p>
<p>Interesting article… but don’t overlook the fact that the stats are talking about AGI and NOT income. These are two totally different things. </p>
<p>AGI is the part of your income that you’re taxed on… which is often much less than your income (especially for those earning less than ~$50k per year). When someone is talking about how much one ‘makes’ they are almost always talking about gross income, not AGI. </p>
<p>The personal exemption plus standard deduction lets you take almost $9,000 off your income. So, for example, in reference to the title of this thread those ‘making $32k’ are actually ‘making’ closer to $40k. If they itemize (probably unlikely for someone in that income range) it could be even higher.</p>
<p>AGI is before credits, exemptions and deductions.</p>
<p>Yes, you’re right… my goof. (face turns red) ;-)</p>
<p>Was looking at the wrong line of the tax forms…</p>
<p>Surprisingly, many of the wages here in the NYC area are NOT any higher than they are for comparable or even identical positions elsewhere. S1 is living much better since he moved away from here taking a lateral transfer, same salary, just a different city where COL is much, much lower.</p>
<p>It’s truly sad that being in the richer half of Americans in terms of disposable income in some cases doesn’t make you any less broke than someone living on ramen in college.</p>
<p>Actually, futurenyu, the starting salary for a NYC teacher is over 42K, so 10 grand over the median in the first year. Not bad for someone right out of college with a bachelor’s–I don’t know anyone who got paid that much their first job. Plus, that’s 10 months, so two other months to work if so desired (or not, which is great). Steady pay raises and good benefits. (My H career switched to teaching recently, so I pay a lot of attention to this!)</p>
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<p>Yes it does.</p>
<p>Football, it depends on the person. A student living on ramen in college can be truly pseudo poor in that he often has the option of moving back home to live a very nice middle and upper middle class life with the family. These are the gap years for young people and many of them are living a life of privilege, going to school, socializing, and not quite fully embracing the realities of being self sufficient. Not all, I understand, but most. </p>
<p>There is world of difference between a twenty something single student with a disposable income figure of about $20K and someone who is truly self sufficient and possibly with dependents who have to live on that amount.</p>
<p>Yeah but about half of students work. The only reason I don’t have a job now is because it’s REALLY hard to find one in my area because our ecnomy is horrible before, during, and after any ‘recessions’, and because I’m a miser with some $ left in the bank. I lost my football scholarship when I was caught smoking marijuana five times in as many weeks.</p>
<p>For some reason, Football, I don’t think many of us have much sympathy for you.</p>