tntgoodwin Posted March 28, 2011 Share Posted March 28, 2011 (edited) What would you consider to be wealthy? I am only talking about financially here. To me, it would break down like this: annual income $75,000 and up - comfortable Annual income $125,000 and up - very comfortable Annual income $200.000 and up - well off Annual income $300,000 and up - Very well off Net worth > $10 million, with annual income exceeding $300,000 is wealthy. I think wealthy, I think of those who hire a personal staff, and don't have to work a day job at all. When your investments and your money produce more income than your job. FWIW, my income is about $20,000 annually, and I am content, but mostly because I have great benefits, and when I get out of the military, I will be able to get a job that would put me in the comfortable range. EDIT: THIS IS JUST REFERRING TO THE USA. :) Edited March 28, 2011 by tntgoodwin Quote Link to comment Share on other sites More sharing options...
HeidiKC Posted March 28, 2011 Share Posted March 28, 2011 Yep, I completely agree with your breakdown. I'm sure lots of people will say it depends where you live, but it fits for this area. Quote Link to comment Share on other sites More sharing options...
eternalknot Posted March 28, 2011 Share Posted March 28, 2011 My best friend is a wealth manager/financial advisor. His idea of wealthy differs from mine, and he's sort of schooled me on what constitues "wealth" from his perspective; prior to that, I shared your ideation. Mostly because that's what I read about or saw on television :) My husband got out as an E-8, and always made way less than our non-military peers and siblings. But the flip side was we had better benefits than they did, and that when one considered those benefits our earnings weren't all too far off from our loved ones'. Sometimes we were better off, bigger picture. I think it also depends on where one lives. I live in a city where the median income is listed as $175K, and most of our neighbors earn well over $200K. Here, your calulations would be accurate - these people are well-off and have luxury homes, vacations, cars, clothes, and the typical things you'd expect (including maids and nannies). Yet, those same earnings where my sister lives wouldn't get her as far. Like you, she's in Hawaii. She earns about $200K/year and lives comfortably, but not well off by any means. I think it's relative to location, among other things. I also know that not everyone who is able to do so WILL buy luxury homes, vacations, cars, clothes, or hire personal staff ;) it's hard to say who is earning what these days. As an aside, what drives me crazy here are the lower-end folks who are in credit debt trying to be like the Joneses' who are on the upper end of our city's median income. I find that people who do have, don't always flash it the way people who don't but wish they did (or want people to think they do). I wish you success! Quote Link to comment Share on other sites More sharing options...
tntgoodwin Posted March 28, 2011 Author Share Posted March 28, 2011 Oh, a great book on this subject is The Millionaire Next Door. But I agree, location does matter. I was speaking pretty generally in the US, as an average. :) Quote Link to comment Share on other sites More sharing options...
nono Posted March 28, 2011 Share Posted March 28, 2011 Where? Supporting how many people? Net or gross?? Without factoring in cost-of-living, no. of people to support, and a progressive tax system... Quote Link to comment Share on other sites More sharing options...
tntgoodwin Posted March 28, 2011 Author Share Posted March 28, 2011 I was figuring it as average COL, 4 person family, and incomes are taxed accordingly. Quote Link to comment Share on other sites More sharing options...
KellyKelley Posted March 28, 2011 Share Posted March 28, 2011 To me wealth is how long can you live on your savings and passive income without going to an outside job. The dollar ammount isn't so important because if someone is happy to live a simple life then it doesn't take much to be wealthy however there is never enough money to be rich because you always need more with a stuff based idea of wealth. Quote Link to comment Share on other sites More sharing options...
nono Posted March 28, 2011 Share Posted March 28, 2011 Well, OK, we're a family of 4, but with our tax system, we've actually found that we're in better shape (net) with my dh earning less. So, I don't think it is a straight-line progression as the gross numbers suggest. Our tax system, esp. with Alt Min Tax, really messes with the middle of your breakdown. P.S. Kelly, I like your def.! Quote Link to comment Share on other sites More sharing options...
Jane in NC Posted March 28, 2011 Share Posted March 28, 2011 In my opinion, net worth is a better measure of wealth. Many people with high incomes have high debt. Are they wealthy? Someone with a lesser income could have more net worth because of equity in their homes and a modest investment portfolio (and perhaps little or no debt). Further, someone who has a high income job today could lose the position tomorrow. Things tend not to change overnight for a person with solid net worth. Quote Link to comment Share on other sites More sharing options...
Carrie12345 Posted March 28, 2011 Share Posted March 28, 2011 In my head, wealthy is when all of your needs and wants can be paid for without having to check your bank balance. ;) Quote Link to comment Share on other sites More sharing options...
kdeno Posted March 28, 2011 Share Posted March 28, 2011 think of wealthy as having running water in your home and not having food anxiety. :grouphug: Quote Link to comment Share on other sites More sharing options...
Heather in Neverland Posted March 28, 2011 Share Posted March 28, 2011 Well I know what I USED to think was wealthy...then I moved to SE Asia. In the U.S. we made about 100K per year and I did not consider us wealthy at all...just middle class...maybe upper middle class? Here we make 48K a year (in USD) and we are FAR wealthier than the average Malaysian. So my definition of wealth has changed drastically since living with and ministering to the very, very poor (so poor that inner city ghetto kids are wealthy by comparison). "If you have food in the refrigerator, clothes on your back, a roof overhead and a place to sleep ... you are richer than 75% of this world. If you have some money in the bank, some in your wallet, and spare change in a dish someplace ... you are among the top 8% of the world's wealthy. If you woke up this morning with more health than illness ... you are more blessed than the million who will not survive this week. If you have never experienced the danger of battle, the loneliness of imprisonment, the agony of torture, or the pangs of starvation ... you are ahead of 500 million people in the world. If you can attend a church meeting without fear of harassment, arrest, torture, or death ... you are more blessed than three billion people in the world." I am wealthy beyond my wildest dreams... Quote Link to comment Share on other sites More sharing options...
Denisemomof4 Posted March 28, 2011 Share Posted March 28, 2011 In my opinion, net worth is a better measure of wealth. Many people with high incomes have high debt. Are they wealthy? :iagree: Quote Link to comment Share on other sites More sharing options...
LidiyaDawn Posted March 28, 2011 Share Posted March 28, 2011 What would you consider to be wealthy? I am only talking about financially here. To me, it would break down like this: annual income $75,000 and up - comfortable Annual income $125,000 and up - very comfortable Annual income $200.000 and up - well off Annual income $300,000 and up - Very well off Assuming a family with a working dh, SAHM, and two kids: Those numbers would work wonderfully for one place I've lived and terribly for another - in the latter, that first category would still qualify you for various public assistance and you'd be living in low-income, subsidized housing. Actually - you'd prolly end up finding a better paying job or leaving town. It DEFINITELY wouldn't be anywhere even close to "comfortable". Quote Link to comment Share on other sites More sharing options...
Nicole M Posted March 28, 2011 Share Posted March 28, 2011 In my opinion, net worth is a better measure of wealth. Many people with high incomes have high debt. Are they wealthy? Someone with a lesser income could have more net worth because of equity in their homes and a modest investment portfolio (and perhaps little or no debt). Further, someone who has a high income job today could lose the position tomorrow. Things tend not to change overnight for a person with solid net worth. I agree with this. At the college where I work, the financial aid folks are always telling me shocking stories about students "crying poor" when their folks actually earn huge, huge incomes... but because their folks apparently value many cars, boats, vacation homes, etc. more than their children's education, they carry enormous amounts of debt. It's staggering to me. Off topic, I guess, but yes, wealth sometimes is hard to gauge from externals. Quote Link to comment Share on other sites More sharing options...
Nicole M Posted March 28, 2011 Share Posted March 28, 2011 think of wealthy as having running water in your home and not having food anxiety. :grouphug: Me, too! Well said! I would add "love and delight" in our daily lives. :D ETA: I've been living out of a mini-fridge the last three weeks, waiting for a replacement part on my "real" fridge, and boy has that given me some perspective. This afternoon I will be back in business, and gosh, am I grateful! Quote Link to comment Share on other sites More sharing options...
alpidarkomama Posted March 28, 2011 Share Posted March 28, 2011 Well, OK, we're a family of 4, but with our tax system, we've actually found that we're in better shape (net) with my dh earning less. So, I don't think it is a straight-line progression as the gross numbers suggest. Our tax system, esp. with Alt Min Tax, really messes with the middle of your breakdown. Taxes make things REALLY weird. It would take another $20K in salary to REALLY change our net income enough to make it worth DH having a higher-stress/responsibility job. On the OP's scale we're living "uncomfortably", but I really think we're at least as comfortable as someone making $75K. I personally think we're pretty comfortable (though we need to put more towards retirement). We live a pretty simple life. I've entered various scenarios into our tax software and it's very weird to see the results! Quote Link to comment Share on other sites More sharing options...
alpidarkomama Posted March 28, 2011 Share Posted March 28, 2011 Well I know what I USED to think was wealthy...then I moved to SE Asia. In the U.S. we made about 100K per year and I did not consider us wealthy at all...just middle class...maybe upper middle class? That would definitely be upper middle class. The median household income in the U.S. in 2008 was $52K. We're a little above the median, but certainly feel wealthier than 99% of the world! I totally agree with you that the poor in this country is far better off than the poor in many, many other countries. We adopted two of our children from Ethiopia and there there is poverty, the likes of which is just not seen here. Quote Link to comment Share on other sites More sharing options...
tntgoodwin Posted March 28, 2011 Author Share Posted March 28, 2011 So, when you hear the phrase "tax cuts for the rich" what does it make you think of? Quote Link to comment Share on other sites More sharing options...
Ann.without.an.e Posted March 28, 2011 Share Posted March 28, 2011 4 kids on 40,000/year is so very tight. No money to save for retirement or college. But, we are not poor either. If you line us up with the rest of the world, we are very wealthy. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted March 28, 2011 Share Posted March 28, 2011 So, when you hear the phrase "tax cuts for the rich" what does it make you think of? I generally look like this guy-->:glare: Quote Link to comment Share on other sites More sharing options...
Parrothead Posted March 28, 2011 Share Posted March 28, 2011 Really wealthy is going to be subjective. We are past your comfortable amount but paying rent and a mortgage cuts down the comfort factor. To me wealthy means no longer living paycheck-to-paycheck. Quote Link to comment Share on other sites More sharing options...
Homemama2 Posted March 28, 2011 Share Posted March 28, 2011 I totally agree with you that the poor in this country is far better off than the poor in many, many other countries. We adopted two of our children from Ethiopia and there there is poverty, the likes of which is just not seen here. :iagree: I agree with the OP's breakdown for America, but when you compare our country to others in the world, most of us are considered wealthy. Quote Link to comment Share on other sites More sharing options...
fairfarmhand Posted March 28, 2011 Share Posted March 28, 2011 I think I remember a Cosby show like this... Claire said, "Your father and I work very hard for our money. Wealthy people have their money work hard for them." I always remembered that and thought it was very clever and accurate. Seriously, mpst people in the US are wealthy compared to the rest of the world though. Quote Link to comment Share on other sites More sharing options...
Lady Florida. Posted March 28, 2011 Share Posted March 28, 2011 So, when you hear the phrase "tax cuts for the rich" what does it make you think of? I think of those making over $250K because that's who the tax cuts for the rich affected. I also think of the top 2% in income level. I don't just come up with my own idea of who the rich are when referring to "tax cuts for the rich", I look up who would be affected. And yes, people at that income level are rich. They might choose to live above their income level, but that doesn't mean they aren't rich. It just means they don't know how to manage their money. Quote Link to comment Share on other sites More sharing options...
Heather in Neverland Posted March 28, 2011 Share Posted March 28, 2011 I totally agree with you that the poor in this country is far better off than the poor in many, many other countries. We adopted two of our children from Ethiopia and there there is poverty, the likes of which is just not seen here. I used to teach in inner city Detroit and those were "children of poverty". Then I saw what REAL poverty is like. Wow. Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted March 28, 2011 Share Posted March 28, 2011 So, when you hear the phrase "tax cuts for the rich" what does it make you think of? political rhetoric Quote Link to comment Share on other sites More sharing options...
Retired Posted March 28, 2011 Share Posted March 28, 2011 What would you consider to be wealthy? I am only talking about financially here. To me, it would break down like this: annual income $75,000 and up - comfortable Annual income $125,000 and up - very comfortable Annual income $200.000 and up - well off Annual income $300,000 and up - Very well off Net worth > $10 million, with annual income exceeding $300,000 is wealthy. I think wealthy, I think of those who hire a personal staff, and don't have to work a day job at all. When your investments and your money produce more income than your job. FWIW, my income is about $20,000 annually, and I am content, but mostly because I have great benefits, and when I get out of the military, I will be able to get a job that would put me in the comfortable range. EDIT: THIS IS JUST REFERRING TO THE USA. :) these number would work in my area I live near B'ham Alabama Quote Link to comment Share on other sites More sharing options...
KristinaBreece Posted March 28, 2011 Share Posted March 28, 2011 What would you consider to be wealthy? I am only talking about financially here. To me, it would break down like this: annual income $75,000 and up - comfortable Annual income $125,000 and up - very comfortable Annual income $200.000 and up - well off Annual income $300,000 and up - Very well off Net worth > $10 million, with annual income exceeding $300,000 is wealthy. I think wealthy, I think of those who hire a personal staff, and don't have to work a day job at all. When your investments and your money produce more income than your job. FWIW, my income is about $20,000 annually, and I am content, but mostly because I have great benefits, and when I get out of the military, I will be able to get a job that would put me in the comfortable range. EDIT: THIS IS JUST REFERRING TO THE USA. :) We make, as a family of 4, about 25K a year. We manage comfortably for the most part. There are times when that's harder than others, and if big incidentals come up, things can get really tight. 75K doesn't even seem real to me, at this point. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
My3Boys Posted March 28, 2011 Share Posted March 28, 2011 political rhetoric :iagree: Quote Link to comment Share on other sites More sharing options...
mcconnellboys Posted March 28, 2011 Share Posted March 28, 2011 I'm not sure that I'd characterize $125K and up as "very" comfortable. My husband doesn't make quite that much, but we have quite a bit of debt (although we own our house) and all our cars are old garbage. We have to worry about using them for out of town trips, etc. We don't take vacations on any regular, yearly basis, buy expensive jewelry, clothes, etc. We don't own a lot of high tech toys (I still watch a 25 year old TV). Most of our furniture is used "antiques" (read junk) or hand-me-downs and has been in our house since we were married, or since before we moved here, 13 years ago. I only go to a hair dresser when I have to, once every couple or three months (I have short, thick hair). I never do things like get my nails done, get a pedicure or a massage, etc. We cut our own grass, mulch our own beds. We're not fancy in any way. And we wonder how we're going to be able to make it and keep going as we go forward. If my husband lost his job, I would be terrified. I'm already worrying about what I can do to earn extra money once my younger son decides to go to high school or is off to college.... Quote Link to comment Share on other sites More sharing options...
justamouse Posted March 28, 2011 Share Posted March 28, 2011 It all depends on how many kids /people you have to support. It depends on your cost of living and your state taxes. Your income just about pays my property taxes, and I don't live in an insanely affluent area--just NJ. ;) And no, I can't move. Quote Link to comment Share on other sites More sharing options...
Linda1951 Posted March 28, 2011 Share Posted March 28, 2011 the money amounts you have listed, is that before or after taxes, insurance and 401k? DD makes 80,000 but after taxes and insurance and 401k it is 52,000 and now days that is almost around poverty. at least here in Texas where prices go up everytime someone sneezes. after house payment, utilities, gasoline, other things we pay monthly we barely have 100 dollars left/. Quote Link to comment Share on other sites More sharing options...
Linda1951 Posted March 28, 2011 Share Posted March 28, 2011 according to our Pastor anyone having a home, car, insurance and food and even over 1.00 is weatlhy according to the rest of the world. Quote Link to comment Share on other sites More sharing options...
nono Posted March 28, 2011 Share Posted March 28, 2011 Your income just about pays my property taxes, And, you probably have contemplated only owning bikes, due to our car insurance rates. ;) Quote Link to comment Share on other sites More sharing options...
justamouse Posted March 28, 2011 Share Posted March 28, 2011 And, you probably have contemplated only owning bikes, due to our car insurance rates. ;) With 6 of those caboose thingies. ;) Quote Link to comment Share on other sites More sharing options...
mcconnellboys Posted March 28, 2011 Share Posted March 28, 2011 Yes, that's the thing for us, after all the take-outs for a million different things, insurance, taxes, 401k, etc., etc., we don't really "make" or bring home that much, so maybe that needs to be clarified..... Quote Link to comment Share on other sites More sharing options...
DawnM Posted March 28, 2011 Share Posted March 28, 2011 http://www.globalrichlist.com/ Take this quiz to see how rich you are. It is amazing and very humbling. Quote Link to comment Share on other sites More sharing options...
tntgoodwin Posted April 1, 2011 Author Share Posted April 1, 2011 Yes, that's the thing for us, after all the take-outs for a million different things, insurance, taxes, 401k, etc., etc., we don't really "make" or bring home that much, so maybe that needs to be clarified..... No, I am including all that. Poor folks don't have 401k's, or car insurance...they usually rent, etc. Quote Link to comment Share on other sites More sharing options...
Carrie12345 Posted April 1, 2011 Share Posted April 1, 2011 And, you probably have contemplated only owning bikes, due to our car insurance rates. ;) :lol: I don't know about that. "Way back" in 1994, I had to have insurance just to have a license, whether I drove a car or not. I wonder if they'd allow you to let a license expire and then drop the insurance... :confused: Quote Link to comment Share on other sites More sharing options...
Geek Posted April 1, 2011 Share Posted April 1, 2011 (edited) Well, OK, we're a family of 4, but with our tax system, we've actually found that we're in better shape (net) with my dh earning less. I can relate to this. My husband actually refused a raise because we would have ended up with less net income b/c of having been pushed into the next tax bracket. Seriously, mpst people in the US are wealthy compared to the rest of the world though.No kidding. Whenever one of my children has asked, "Are we poor, working class, middle class, rich, or what?" it became a geography, political science, and moral conversation, not cut and dried. It's something I like to keep present in their minds, especially since one of them recently asked me if we were poor because we **only** have one video gaming system and "all of my friends" (gross exaggeration, but he was in a hormonal mood at the time) have several + a DSi. :001_huh: Um, no. That conversation meant it was time for another reality check via charity work. Edited April 1, 2011 by Geek Quote Link to comment Share on other sites More sharing options...
Greenmama2 Posted April 1, 2011 Share Posted April 1, 2011 I think I remember a Cosby show like this... Claire said, "Your father and I work very hard for our money. Wealthy people have their money work hard for them." I always remembered that and thought it was very clever and accurate. :iagree: My stepfather says "Money makes money and the money money makes makes money." Quote Link to comment Share on other sites More sharing options...
Geek Posted April 1, 2011 Share Posted April 1, 2011 Yes, that's the thing for us, after all the take-outs for a million different things, insurance, taxes, 401k, etc., etc., we don't really "make" or bring home that much, so maybe that needs to be clarified.....No, I am including all that. Poor folks don't have 401k's, or car insurance...they usually rent, etc.And many of them don't have health care because they fall in the cracks between those with private insurance and those who qualify for government assistance. It's tragic. I'm one of those folks lucky enough to have a 401K and medical insurance and I don't ever forget that. It's worth a lot and /should/ be considered when looking at one's wealth. Sure, our take-home pay may be less than what people think b/c of all these optional, valuable deductions, but so what? Mcconnellboys, I can really relate to what you said above We don't take vacations on any regular, yearly basis, buy expensive jewelry, clothes, etc. We don't own a lot of high tech toys (I still watch a 25 year old TV). Most of our furniture is used "antiques" (read junk) or hand-me-downs and has been in our house since we were married, or since before we moved here, 13 years ago. I only go to a hair dresser when I have to, once every couple or three months (I have short, thick hair). I never do things like get my nails done, get a pedicure or a massage, etc. We cut our own grass, mulch our own beds. We're not fancy in any way. especially since we have a lot of medical expenses that really deplete what take-home pay there is. But I never, ever forget the value of medical insurance. Every day I'm grateful for it because I really don't know where we'd be without it. I know what we have to pay for all the stuff that isn't covered (a lot) so I cannot imagine having to pay for all the stuff that IS covered. My heart goes out to any of you here without medical insurance. :o Quote Link to comment Share on other sites More sharing options...
Peela Posted April 1, 2011 Share Posted April 1, 2011 If you exclude the comparison with most of the rest of the world, which makes 95% of us insanely wealthy (and I really think its GOOD to remember that because it may not always be so that we are the lucky ones- its good to be grateful) ... I was talking to dh about this this morning- on our way back from the beach. I mentioned that some people we know are far more wealthy than we are- they are going overseas soon and it is costing them half our yearly income for the trip for the family- and he just came back with "no, we are the wealthy ones" and we talked about it. He works a job he loves- only about 25-30 hours a week. I homeschooled for years and now only work maybe 6 hours a week. We don't own our house- but we rent a nice house in a nice area. We are time rich. We eat well. We APPRECIATE what we have and don't hanker for more. We don't compare ourselves with wealthier people and feel inadequate like others we know. Dh has plenty of time to be a dad to his kids, and I am there when they get home after school. We KNOW we are in the top few % in the world. Even if you don't compare to the rest of the world- we are wealthy because we feel wealthy. In our suburb, we are surrounded by people with more money, more income, more debt, more stress, far, far less time.....we know we are lucky, and we are grateful. We are supremely wealthy. (and our income would be in your first or 2nd bracket) Quote Link to comment Share on other sites More sharing options...
Old Dominion Heather Posted April 1, 2011 Share Posted April 1, 2011 I'd consider anyone making more than 100k wealthy unless there are extenuating circumstances, like they have 10 kids. I think anyone making more than 20k per person they support is pretty wealthy. Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted April 1, 2011 Share Posted April 1, 2011 the money amounts you have listed, is that before or after taxes, insurance and 401k?DD makes 80,000 but after taxes and insurance and 401k it is 52,000 and now days that is almost around poverty. at least here in Texas where prices go up everytime someone sneezes. after house payment, utilities, gasoline, other things we pay monthly we barely have 100 dollars left/. We gross less than you take home after insurance and 401K. We live in central texas. We are comfortable. We don't get to buy everything we want, go on every vacation we want. But we have a roof over our head, food in our stomachs, transportation to get to the job and presents for under the tree. We are not living in poverty. Quote Link to comment Share on other sites More sharing options...
mommymilkies Posted April 1, 2011 Share Posted April 1, 2011 (edited) To me, wealthy is having enough money to not worry about whether you can pay bills next month, whether you have enough money to go get toilet paper before next payday, and the ability to go on vacation without worrying about bouncing any checks. But I'm biased as my family is quite literally dirt poor. We are well to do in comparison, but still paycheck to paycheck at less than half of your first category. ;) I have state insurance, and so do 3 of our kids because dh's work insurance (he's a college professer, no less) is over $1800 a month for just me to be added. That's more than 60% of our income. Dh does have retirement savings but that's because it's mandatory for his job. If he doesn't contribute over 8% a month, he can not legally hold his job. Edited April 1, 2011 by mommymilkies Quote Link to comment Share on other sites More sharing options...
KristinaBreece Posted April 1, 2011 Share Posted April 1, 2011 To me, wealthy is having enough money to not worry about whether you can pay bills next month, whether you have enough money to go get toilet paper before next payday, and the ability to go on vacation without worrying about bouncing any checks. But I'm biased as my family is quite literally dirt poor. We are well to do in comparison, but still paycheck to paycheck at less than half of your first category. ;) :iagree: Quote Link to comment Share on other sites More sharing options...
alpidarkomama Posted April 1, 2011 Share Posted April 1, 2011 As it says in the talmud... Who is rich? He who is happy with what he has. :) Quote Link to comment Share on other sites More sharing options...
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