My Personal Finance Pyramid
If you have read this blog in the past, you know that I created a visual chart to gauge my personal finance progress as I climb a wealth pyramid that I have created. The pyramid (based off of Maslow’s Pyramid of Needs) seemed to be a great representation of such a wealth-pursuing journey. In many ways, it helps me visualize the various levels and created milestones for me to watch for, since I love feedback! So without further ado, here is my update on my progress climbing my “Personal Finance Pyramid“!
I have obtained the level of Lower “Upper Middle Class” status! sort of…
You are probably wondering why I wrote “sort of“.
Well, during the run of the stock market after “The Great Recession”, I managed to climb up to the lower green bar of the “Upper Middle Class” status area. But now since the stock market has dipped again, I’ve fallen in the upper portion of the Asset Accumulation level again. Close to “Upper Middle Class”, but not quite.
Upper Middle Class is actually a tricky category to be placed in since it’s more than just wealth and income. In my part of the country, currently I fulfill those requirements… but the standard of living is lower where I live vs a larger city like New York. As for eduction, I believe I fulfill those requirements, but barely. No fancy ivy league schools in my past college life.
Another reasons I consider my family “lower upper middle class“ is because we live at a more frugal state than others in my city with comparable income. But that said, many of my neighbors make a similar amount of income, so I’m not that far off. My house is just a little over 2,000 sq feet though, so it’s smaller than the norm is these days.
Now for the Upper Middle Class lifestyle versus my current “middle class” lifestyle.
I have and do a lot of the same things as the upper middle class does, but instead of a Lexus I have a Toyota Camry. And instead of taking vacations overseas, I still go on entire family vacations typically to the beach. Oh, I could afford to take overseas vacations, but I would like to build up my dividend stream first to fund such activities. Besides, I’m still growing my Wealth Snowball that was created in the Asset Accumulation level. I guess lower “upper middle class” would mean that I have one foot in the Asset Accumulation level, and one foot in the Upper Middle Class level.
What financial numbers does it take to be considered the Upper Middle Class?
- Household Income of over $100,000 (or for an individual to be at or above $95,000 in year 2012). Update (2013): I’ve recently read that a good starting number is around $120,000.
- Net Worth of around 500k+ (at least in 2012)
Anyway, that’s my assessment of my current state. If the market keeps dipping though, there is a good chance that I’ll slip entirely back into the “Asset Accumulation” phase.
I hope the stock market has been more gentle with you than it has with me lately!