Six dollar a gallon gasoline fill ups. What it would mean to the middle class pocket books in terms of dollars spent per year. This is scary!

According to data the yearly average income of the middle class with two income earners was $67, 348.00 in 2005.
[link to en.wikipedia.org]

$6.00 a gallon gasoline, which by some accounts may be a conservative figure in 2 to 3 years will have the following affect on this ‘average’ family.

$6.00 X 20 (gallon tank) = $120.00
$120.00 X 52 weeks = $6,240.00 per year on fuel.
6,240.00 X 2 (two vehicles) = 12,480.00 per year for fuel.
This equates to 18.5% of this families gross salary.

Now let us say this family owns a home and has a conventional mortgage.
We need to figure the Debt to income ratio to determine what typical size loan this family has. [link to en.wikipedia.org]
Based on the formula cited in the link
Yearly Gross $67,348.00 / Divided by 12 = $5,612.00
$5,612.00 X .28 = $1,571.00 for housing expense.
$5,612.00 X .36 = $2,020.00 for housing expense and recurring expenses.
$2,020.00 X 12 monthly payments = $24,240.00

When you figure in a conservative grocery bill of $250.00 a week for a family of four your annual total is $13,000.00.

The federal tax liability of this average family can be estimated at approximately $7,102.00 based on $20,000 in allowable deductions and a 15% tax bracket.

Social Security eats up another 6% of gross income and Medicaid eats up another
1.5% so that is 7.5% more of the gross income of this average family which is $5,051.00

If the electric bill is an average of 300.00 per month that is another $3,600.00

24,240.00 (mortgage + recurring expenses)
+ 12,480.00 (gasoline)
+ 13,000.00 (food)
+ $7,102.00 (federal taxes)
+ 5,051.00 (Social Security and Medicaid)
+ 3,600.00 (Electricity)
+ 1,200.00 (Automobile Insurance)
= $66, 673.00 or 99% of this average family’s gross income went to pay for these 7 items.

The remaining 1% will have to pay for all the other expenses this family has.