I’m a Top 10% Earner: 5 Reasons I Consider Myself Middle Class
Written by
G. Brian Davis
Edited by
Amen Oyiboke
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According to the most recent Current Population Survey (CPS) data, an income of $234,769 or higher lands you in the top 10% of households by income.
But in some parts of the country, even that income doesn’t buy you a life of luxury.
“On paper, I earn in the top 10%, but I still feel very much middle class,” said Julian Merrick, a marketing consultant and founder of Supertrader. “I’m careful with money, but the price of everyday things keeps going up — whether it’s school fees, healthcare, or even basic services.”
Merrick isn’t alone in feeling middle class despite a nominally high salary. Many earning $200,000 or more say they still feel stuck in the rat race. Here’s why.
Coastal City Housing Costs
Merrick lives in New York City, where the average home costs $797,519 according to Zillow. Some cities cost even more.
“Living in an ‘elite’ zip code can distort your perception of what it means to be well off,” said Jeremy Gurewitz, cofounder of Solace Health. He lives in San Francisco, where Zillow pegs the average home price at $1,291,622. “A middle-of-the-road three-bedroom home close enough to tech hubs for a reasonable commute can cost well over $1.5 million. That level of overhead doesn’t leave much room for luxury or financial freedom. Success, for me, isn’t synonymous with comfort.”
Lingering Student Loans
Many higher earners still carry proportionately high student loan bills.
Gurewitz attended the Wharton School of Business at the University of Pennsylvania, which estimates its annual cost of attendance at more than $95,000. Multiply that by four years for an undergraduate degree, and graduates can find themselves owing nearly $400,000 — more than the cost of the average U.S. home.
High Child Care Costs
In San Francisco, Care.com puts the average monthly child care cost at $3,537. Two children under school age can cost more than $7,000 a month in child care alone.
“In an area like San Francisco, $200,00-plus doesn’t go that far when you have to factor in a mortgage, child care, student loans, and the extreme cost of other essential services like healthcare, insurance, or even just the grocery store,” said Gurewitz.
College Savings
Most parents earning top 10% salaries want to help their children pay for college — even if they are still paying off their own student loans.
“You’re planning for college, saving for retirement, and trying to build a safety net,” Merrick said. “By the time all that’s factored in, there’s not as much leftover as you’d think.”
Retirement Planning Takes a Bite
The other part of that future planning is, of course, retirement.
“We aim to max out our retirement contributions each month,” said Gurewitz. “My definition of wealth involves time freedom and generational stability, neither of which seems assured at this point. I still check menus for prices and pause before booking a vacation. I rent a mid-range SUV, still budget carefully, and save rather than splurge.”
Careful budgeting is a recurring theme among these higher — but not superstar — earners. Gurewitz and Merrick might have larger income lines on their budget than the average American, but they also have larger expenses like mortgages, childcare, and student loan payments. And when you have to track every dollar you spend, you don’t feel rich — you feel middle class.
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