roranoa wrote:P.S: How is a 100k -200k income range be considered to be middle class?? I don't know maybe that's the way it is in NYC?
well basically you need to work backwards. you can roughly afford a house that is 3x ur income. good luck finding a house anywhere close to NYC that costs 300k. this is similar for most metropolitan areas.
by middle class i basically mean living in a suburb of a major metro, having a house with a yard, a car, two kids, a dog, etc. to achieve that in today's society you basically need 100k+.
Don't listen to this. It's crazy law student groupthink about why you must make 100k+ or you won't survive!!!!
It's feeds into the panic that drives many people who don't actually match well with BigLaw into BigLaw.
First off, 300k for the burbs is just too high for most metro areas. Maybe if by "most metropolitan areas" you mean only NY, San Fran, Boston, maybe DC, maybe LA. But that isn't most metropolitan areas. Think Texas or the Midwest (Chicago, Detroit, St Louis, Twin Cities, Cleveland) and 250k will get you a nice house. Not just a good house, a nice
Next off, you can arrive at an affordable mortgage by taking your monthly payment and multiplying it by 4 -- the result being the income you'd need to comfortably
pay off the mortgage. Let's do some back of the envelopes here and take a 250k mortgage. Set the interest rate at 6% for 30 yrs -- a little high in today's market. Monthly payments will be about $1499, meaning you'd need to make $5996/mo. to pay that mortgage off comfortably. And stretched over a year, that comes to about a $72k annual salary.
Seventy-two thousand dollars! That's midlaw.
This is not the bottles and models lifestyle, but the comment above was about a middle class lifestyle -- 2 kids, a dog, a yard, a house in the burbs, a car. If you're living in the great majority of the country, 72k will get you there comfortably
So, relax. You do not need to do BigLaw to have a middle class lifestyle (unless I suppose you're dead set on living in one of the three or four most expensive cities in America). And as somebody pointed out, this is assuming a single income... Which will not be most families.