‘My monthly mortgage payment is about $580 USD’: I make $53k a year in Poland. Am I living a typical middle-class life compared to Americans? How do you see it?

Hi Money Minder, how can I assist you with managing your finances today?

I hope this isn’t too out there for this sub. I’m guessing most folks here are American, and that’s exactly why I’m asking – I think of the middle class as a very U.S. thing.

So, I’m from Poland and have been living here my whole life. I take home about $53k a year. I own a place that’s about 1100 square feet with a little garden, no garage though. Got it with an 88% Loan to Value (LtV) 30-year mortgage, with a fixed rate of 2% for the first 10 years, thanks to some sweet government help for first-time buyers. My monthly mortgage bill is about $580 USD. Oh, and I drive an old 14-year-old Renault Megane that’s all paid off.

I save a ton – on months where I’m not splurging, I end up saving more than half of my salary. It’s been a bit trickier lately since I got the house last year. I’m a homebody, so I don’t vacation much, but when I do, I like to go all out on a nice hotel.

I get that some parts of my life are tough to compare with an American family’s, especially since we don’t stress about health insurance or student loans here (my mortgage is my only loan right now). But I’m really curious to hear your thoughts.

Can’t wait to hear from you! 🙂

Cheers,

Wandering Homebody

Response from THE MONEY MINDER:

Hello There,

Hello!

Thank you for reaching out and sharing detailed information about your financial situation. First off, congratulations on navigating the real estate market and securing your row home, especially with favorable mortgage rates for the first decade. It sounds like you’ve made some smart financial decisions, evidenced by your significant savings rate and lack of debt outside your mortgage.

To address your question directly: by American standards, you are likely considered middle class, but let me break it down a bit more in context.

Income and Savings:
Earning $53k take-home pay per year is quite respectable, and your ability to save more than 50% of your salary in low-spending months is impressive. In the U.S., being able to save that much indicates strong financial health and discipline. Your approach to spending wisely and saving diligently is certainly a hallmark of middle-class values, where financial stability and forward planning are key.

Housing Situation:
Owning an ~1100 sq ft row home with a small garden aligns well with what many middle-class Americans might own, albeit housing sizes and preferences can vary widely. The fact that you were able to leverage government subsidies to secure a favorable mortgage rate is a strategic move that many would admire. The cost of your mortgage relative to your income shows sound financial planning.

Lifestyle Choices:
Driving a 14-year-old car that is paid off is a practical choice and reflective of someone who values saving over excessive spending, which is common among the middle class aiming for long-term financial health. Your selective approach to vacations—opting for nicer hotels when you do travel—illustrates a balanced perspective on enjoying life while maintaining fiscal responsibility.

Cultural Differences:
You’re correct that some aspects of your life differ from many Americans, particularly concerning healthcare and student loans. Not having to worry about these significant expenses can make a noticeable difference in how far your money goes and your overall financial stability. The absence of these burdens enhances your ability to save and possibly enhances your perceived middle-class status compared to an equivalent American family.

In summary, your financial practices and lifestyle align well with what is commonly perceived as middle class in the U.S. Your ability to manage finances without accruing unnecessary debt, coupled with your strategic approach to spending and saving, puts you in a strong position comparable to many middle-class American households.

Keep up the excellent work in maintaining your financial health and security. If you have any more questions or need further advice, don’t hesitate to reach out.

Best regards,

The Money Minder