What do you consider "rich"?

[Stumbleweed]

Re: What do you consider "rich"?

Yeah, geography certainly makes a difference... $100K in San Francisco will get you about the same standard of living as $50K in Denver. Putting those ridiculously inflated markets aside, I still think 100K per year as an individual is a pretty good cutoff point... a very small percentage of people make more than that in a year.

[fistofrage]

Re: What do you consider "rich"?

Yeah, geography certainly makes a difference... $100K in San Francisco will get you about the same standard of living as $50K in Denver. Putting those ridiculously inflated markets aside, I still think 100K per year as an individual is a pretty good cutoff point... a very small percentage of people make more than that in a year.

Yeah, the 100K jobs are relatively scarce. But if you grew up in a small town like I did, the people who were making what you might consider low wages were actually living fairly decent.

In fact, there were probably less than 10 people in my town of 20,000 that were making $100k(I'm speaking in relative terms to today's market), and that would have been a few doctors and the owner of a manufatcuring plant and possibly a Lawyer or two. Most people earned relatively close to that $25,000 but both parents worked.

What we considered middle class in that town were families(both working) that made between $35 and $50K.

But yeah I agree with you, those people that made $100K, we considered rich even though in the grand scheme there wasn't a huge gap in what they had, it was just a little nicer than ours. Now I have a slightly different view on what rich is.

[SuperBowlNachos]

Re: What do you consider "rich"?

I live kind of close to Southlake. That's what I call rich.

Southlake is the richest town in America.

[superjames1992]

Re: What do you consider "rich"?

Its all relative. The thing I find interesting is that the person making $25K most likely has a cell phone, cable and roughly the same diet as the person making $100K per year. The main difference between the 2 is going to be difference in housing and possibly vehicle in most cases, quite a few of the other components are relatively similar.

If you live in small town USA, $25K per year can live relatively decent. In fact probably has more amenities and room in their house than the person in a major metropolitan area making $100K.

Yeah, the USA's "poor" would be the rich in many other countries.

$100K isn't as much as you would think. Between housing payments, bills, taxes (and $100K puts you in a much higher tax bracket), and everything else, you don't have much money left over. You can't just blow it. Just watch the Dave Ramsey Show on Fox Business. It's pretty hilarious to see all these people making $100K+ that are broke simply because they can't manage their finances.

[matt8204]

Re: What do you consider "rich"?

Yeah, the USA's "poor" would be the rich in many other countries.

$100K isn't as much as you would think. Between housing payments, bills, taxes (and $100K puts you in a much higher tax bracket), and everything else, you don't have much money left over. You can't just blow it. Just watch the Dave Ramsey Show on Fox Business. It's pretty hilarious to see all these people making $100K+ that are broke simply because they can't manage their finances.

Read last week's Sports Illustrated. They had a pretty long story about professional athletes who have gone broke because they squandered their money or put it into the wrong hands/bad investments. It's really mind-boggling that a person who makes as much as seven figures per year could be bankrupt. 60 percent of NBA players are broke within five years of retiring from the league.

[CMH]

Re: What do you consider "rich"?

Rich is an opinion. Like others have said, it depends on location, upbringing (a poor family will more likely have kids that see a smaller amount of cash as rich, while a wealthier family will have a differently value of rich).

Wealthy, I think is entirely different. When I think someone is wealthy, they can buy pretty much anything they want with cash and not break a sweat (or check their bank account). Those are the Billionaires and Millionaires of this world.

I'd love to make 100K. I would be rich if I did because I don't really need much to be happy. IfI made 40% of that number I would have everything I need in life. Of course, if I got married, had kids, needed a bigger house, then that 40K would never be enough.

[CMH]

Re: What do you consider "rich"?

Read last week's Sports Illustrated. They had a pretty long story about professional athletes who have gone broke because they squandered their money or put it into the wrong hands/bad investments. It's really mind-boggling that a person who makes as much as seven figures per year could be bankrupt. 60 percent of NBA players are broke within five years of retiring from the league.

I stopped being confused by this when I realized a long time ago that for most people an increase in cash means an increase in expenses. People don't know how to live within a means.

A lot of people (and this is a fact. Just look around) want a raise at work. They think that by getting a raise, they'll be happier. But what happens when they get that raise? They just end up enhancing their personal life. So, the money is still spent and they have more bills.

These athletes go from making nothing to making millions. So they go out and buy multi-million dollars mansions, expensive cars, and spend money on ridiculous things. By the time they know it, they are buried in debt (owing money on those things). Instead of buying something straight up with cash - something affordable, they see they have a lot of money and take a step up. "I can now afford that 50 million dollar house instead of the one million dollar one. I make $10 million a year anyway. It'll be paid in five years."

Yes, it will, and now you have a major injury or decline and you no longer make as much money to match the new expenses in your life. That's why a guy like Sprewell feels justified to say that millions of dollars couldn't feed his family. He's right. It wouldn't feed his family because they are living in a more expensive lifestyle and didn't realize that being an athlete is not a life-time money maker.

[fistofrage]

Re: What do you consider "rich"?

Rich is an opinion. Like others have said, it depends on location, upbringing (a poor family will more likely have kids that see a smaller amount of cash as rich, while a wealthier family will have a differently value of rich).

Wealthy, I think is entirely different. When I think someone is wealthy, they can buy pretty much anything they want with cash and not break a sweat (or check their bank account). Those are the Billionaires and Millionaires of this world.

I'd love to make 100K. I would be rich if I did because I don't really need much to be happy. IfI made 40% of that number I would have everything I need in life. Of course, if I got married, had kids, needed a bigger house, then that 40K would never be enough.

The more you have, the more you want. Its human nature. $100K doesn't go nearly as far as you'd think it would.

Here's a breakdown on $100K:

Taxes $25,000
Childcare $10,000
House Payment $20,000
Car Payments $9000
Health Insurance $3000
Utilities $6000

By the time you throw in Food, Gas, and other, there isn't a whole lot leftover. Like I said the main difference between someone making $30K and $100K will be the housing and possibly the car. Cell phone, diet, cable, electronics will be basically the same.

[GeePee20]

Re: What do you consider "rich"?

It's impossible to agree on a figure here because we all come from different parts of the country where prices and average salaries vary so much.

A friend of mine's family moved to the San Francisco Bay Area from Texas and bought a house for about $150k that was absolutely tiny. Eventually they went back to Texas and bought a huge property in rural Texas for $125k. 10 acres of land and their house's size must have quintupled. Part of me doesn't believe that price but they have no reason to lie. That just goes to show how different prices can be.

If I had to pick a figure for the Bay Area, I'd estimate $250k would make you "rich." But I do agree with whomever mentioned this above that being truly rich has more to do with having financial freedom to do what you want. This freedom comes from what you own and hold.

If you're making $250k but slave away for 60-80 hours a week and can only save 5% of your salary, are you really free? Those who are truly rich are those who have so much in the bank they don't have to work anymore and still live comfortable and pleasurable lives.

[Matt Diesel]

Re: What do you consider "rich"?

I'd say a net worth of over 5 million is rich. 250k a year is really not that much money. It is comfortable, but not rich.

[Stroehms]

Re: What do you consider "rich"?

I'm with the OP, 100k for a family and I'm good. I'm hoping to make an average of 70k once out of college though.

[superjames1992]

Re: What do you consider "rich"?

I'm with the OP, 100k for a family and I'm good. I'm hoping to make an average of 70k once out of college though.

You may be well off making $100K, but that doesn't make you rich. I have experience with it growing up (At one point, my dad raked in $180K per year before 9/11, when he got his pension sliced, his retirement stolen, and his pay dramatically decreased) and there is absolutely no way my parents are anywhere close to rich. Fairly well off? Sure, but they're not even close to rich. And keep in mind that we live in the Triad of North Carolina. While costs of living here are a bit more than some places, they're nothing like Los Angeles, New York, DC, ect.

[Salhus]

Re: What do you consider "rich"?

I used to agree with the opinion of the OP, but my boss is a lawyer and single, but struggles to pay me during the summer...so I'm just not sure

[RAZRr1275]

Re: What do you consider "rich"?

I'd say a net worth of over 5 million is rich. 250k a year is really not that much money. It is comfortable, but not rich.

I'm with you on this.

[SuperBowlNachos]

Re: What do you consider "rich"?

If you are having to worry about anything money related and you are making 250K then you just are irresponsible and likely one of these people who bought a house they couldn't afford.