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What economic class do you fall into?
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<blockquote data-quote="tomBitonti" data-source="post: 6246514" data-attributes="member: 13107"><p>Just a nit: A house which is "owned" but for which the title is still held by the bank, is subject to considerable constraints, compared with a house which is owned free and clear.</p><p></p><p>One does have the right to sell it, and to make improvements. But, one can make improvements to certain rental properties, too.</p><p></p><p>I think the point is that many home owners are hard to distinguish from renters, and may actually be in worse financial shape, say, if the owner has a mortgage which is in an amount greater than the current value of the house.</p><p></p><p>One distinction that I've heard has to do with the source of one's income. Does one derive income from working, or from investments? Basically, does one work for income, or does one obtain income from the work done by others? I'm not sure where high income earners fit into that scheme, or where to put very highly paid business executives, or very highly paid financial workers.</p><p></p><p>I'm wondering, too, where to draw the line between middle and high middle class -- the range seems very wide, and similarly, where to draw the line between the simply wealthy, and the highly wealthy. Would a person with assets of $500,000 and an income of $100,000 be middle class, upper middle class, or upper class? Should a person with assets of $2,000,000 be put in a wholly different category than a person with assets of $20,000,000?</p><p></p><p>Thx!</p><p></p><p>TomB</p></blockquote><p></p>
[QUOTE="tomBitonti, post: 6246514, member: 13107"] Just a nit: A house which is "owned" but for which the title is still held by the bank, is subject to considerable constraints, compared with a house which is owned free and clear. One does have the right to sell it, and to make improvements. But, one can make improvements to certain rental properties, too. I think the point is that many home owners are hard to distinguish from renters, and may actually be in worse financial shape, say, if the owner has a mortgage which is in an amount greater than the current value of the house. One distinction that I've heard has to do with the source of one's income. Does one derive income from working, or from investments? Basically, does one work for income, or does one obtain income from the work done by others? I'm not sure where high income earners fit into that scheme, or where to put very highly paid business executives, or very highly paid financial workers. I'm wondering, too, where to draw the line between middle and high middle class -- the range seems very wide, and similarly, where to draw the line between the simply wealthy, and the highly wealthy. Would a person with assets of $500,000 and an income of $100,000 be middle class, upper middle class, or upper class? Should a person with assets of $2,000,000 be put in a wholly different category than a person with assets of $20,000,000? Thx! TomB [/QUOTE]
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