Moxie Posted October 15, 2008 Share Posted October 15, 2008 I was talking to a friend today and she made a comment about $250,000/year being wealthy. I disagreed. Not when you take into account the student loans someone making that much probably has and health insurance costs. My friend only pays $40/month for health care so she agreed that she has no idea what it is like for the average American who has to pay for their own hc. What do you think? Is $250,000 for a family wealthy or firmly middle-class? Link to comment Share on other sites More sharing options...
Karenciavo Posted October 15, 2008 Share Posted October 15, 2008 In NJ it is not wealthy. Link to comment Share on other sites More sharing options...
Ohio12 Posted October 15, 2008 Share Posted October 15, 2008 It is the top 2% here in America. I think it is wealthy, but I do see your point about the cost of living. I also think it is not as much money in a big city like New York or LA. It would be harder to live well on that amount in those areas depending on your housing situation. Link to comment Share on other sites More sharing options...
Nestof3 Posted October 15, 2008 Share Posted October 15, 2008 Yes, I consider that wealthy. If it's not, then we are REALLY dirt poor. :) Link to comment Share on other sites More sharing options...
Janet in Toronto Posted October 15, 2008 Share Posted October 15, 2008 Depends on what you mean by wealthy. Income? Net worth? Someone with high income can have low net worth based on student loans, medical expenses, housing expenses in some regions, etc. In terms of income, 1.5% of American households have income of $250,000 or above (source). So that level of income is certainly in the upper end of the distribution. Link to comment Share on other sites More sharing options...
laylamcb Posted October 15, 2008 Share Posted October 15, 2008 I don't know; I'd love the opportunity to find out. ;) As others have said, it depends on a lot of factors, one of which is cost of living. Here in the DC suburbs, that $250K would be worth a LOT less than you think. Link to comment Share on other sites More sharing options...
daisychics Posted October 15, 2008 Share Posted October 15, 2008 Yes, I consider that wealthy. If it's not, then we are REALLY dirt poor. :) :iagree: Kinda sad. Link to comment Share on other sites More sharing options...
Quiver0f10 Posted October 15, 2008 Share Posted October 15, 2008 It depends on where you live. In Northern Maine that would be very wealthy, in NW AR it is well to do, but not wealthy and in places like CA that would not be considered wealthy. Link to comment Share on other sites More sharing options...
Tracey in TX Posted October 15, 2008 Share Posted October 15, 2008 No, it's not wealthy. Take into consideration cost of living and number of people in the household. It's a lot less than Mr. Obama implies. Link to comment Share on other sites More sharing options...
elegantlion Posted October 15, 2008 Share Posted October 15, 2008 I personally would consider that well-to-do, perhaps not wealthy. I think it would also be determined by region. To me wealth is not determined by how much money you make, but how much money you keep. Link to comment Share on other sites More sharing options...
rafiki Posted October 15, 2008 Share Posted October 15, 2008 Really? I consider anything over $125K "wealthy". Middle class to me is 40-80K, upper middle class 80-125K. It doesn't matter where you live, the cost of living is all relative, and each one of us has a choice to reside where we do. Link to comment Share on other sites More sharing options...
Jenny in Atl Posted October 15, 2008 Share Posted October 15, 2008 For us... it would be very comfortable. I think this year we will have survived on about 40k. 250k would be AWESOME!!!!!!!!!!!!!! Link to comment Share on other sites More sharing options...
laylamcb Posted October 15, 2008 Share Posted October 15, 2008 Depends on what you mean by wealthy. Income? Net worth? Someone with high income can have low net worth based on student loans, medical expenses, housing expenses in some regions, etc. In terms of income, 1.5% of American households have income of $250,000 or above (source). So that level of income is certainly in the upper end of the distribution. This is very true, and I'd add that folks with high income can also have low net worth because they "grow into" that income level, gift themselves regularly, and come to see the luxuries they've grown accustomed to having as necessities. But then that's a danger we all face, and it's part of what got us into the mess we're in now (in my opinion). Link to comment Share on other sites More sharing options...
Nestof3 Posted October 15, 2008 Share Posted October 15, 2008 Yes, I consider that wealthy. If it's not, then we are REALLY dirt poor. :) I wanted to emphasize, though, that I don't feel they owe me anything just b/c they make much more. I have no bitterness toward anyone whom I consider "wealthy." Link to comment Share on other sites More sharing options...
mrsdash Posted October 15, 2008 Share Posted October 15, 2008 Yes, I consider that wealthy. Link to comment Share on other sites More sharing options...
Karenciavo Posted October 15, 2008 Share Posted October 15, 2008 Wealthy means very affluent, rich. Maybe in the land where houses are under well under $300,000, health insurance isn't $14,000 a year and property taxes aren't $10,000 a year it's rich. Link to comment Share on other sites More sharing options...
Julie in Austin Posted October 15, 2008 Share Posted October 15, 2008 It is more money than 99.998% of the people on the planet earn (according to http://globalrichlist.com/). Link to comment Share on other sites More sharing options...
Plucky Posted October 15, 2008 Share Posted October 15, 2008 In my area it would not be wealthy. It would be very comfortable. Homes here cost on average $300,000. The cost of living is pretty high in my area, too. I think with $250,000 I would feel better about saving for retirement and putting my kids through college. Link to comment Share on other sites More sharing options...
~Sunny~ Posted October 15, 2008 Share Posted October 15, 2008 I would say it was a well off salary. Link to comment Share on other sites More sharing options...
laylamcb Posted October 15, 2008 Share Posted October 15, 2008 ITo me wealth is not determined by how much money you make, but how much money you keep. BINGO! Dead on, Paula. :001_smile: Link to comment Share on other sites More sharing options...
lovemyboys Posted October 15, 2008 Share Posted October 15, 2008 In NJ it is not wealthy. That's what I was thinking, so much depends on location. Where you can buy a nice house for under $150K, then it would be pretty wealthy. Where it's hard to find a nice house for under $350K or more, then it's not so wealthy. I think it also depends on whether you get the income as a paycheck or whether it's your own small business. Link to comment Share on other sites More sharing options...
HRAAB Posted October 15, 2008 Share Posted October 15, 2008 I was talking to a friend today and she made a comment about $250,000/year being wealthy. I disagreed. Not when you take into account the student loans someone making that much probably has and health insurance costs. My friend only pays $40/month for health care so she agreed that she has no idea what it is like for the average American who has to pay for their own hc. What do you think? Is $250,000 for a family wealthy or firmly middle-class? I'm a little confused about the cost of student loans and health insurance costs. I don't think you can necessarily say someone who makes $250,000. + has higher student loans than someone who makes less. Much of that depends on the field they went into and where they live. Also, I'm not aware of health insurance premiums being based on income. Where I live, $250,000. is wealthy. Very wealthy, in fact. However, we make 1/5 that amount, and I don't consider us poor by any means. Janet Link to comment Share on other sites More sharing options...
homeschoolmom Posted October 15, 2008 Share Posted October 15, 2008 I live in NJ and I consider 250K upper middle class. I guess we need to define 'wealthy'? Well-off or loaded? Link to comment Share on other sites More sharing options...
snickelfritz Posted October 15, 2008 Share Posted October 15, 2008 It's definitely enough to be comfortable. But, it falls far short of wealthy. A student loan (or 1 for each spouse) can eat up a bunch. Another factor is cost of living. Many jobs that allow you to bring in that much money are located in areas with higher cost of living. Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 Yes. Even if you: Pay 35% in taxes on the TOTAL amount (FICA, Fed, and State) - $89,375 (Standard deduction, family of 4, self-employed as sole prop, student loan interest deduction and self-employed health insurance deduction. It would probably be a lot lower than this using allowable deductions, tax sheltering business structure, etc.) Pay $1800 a month in student loans ($150,000 over 10 years) - $21,600 Pay $2500 a month for health insurance - $30,000 You still "net" $109,000 which is WAY more than we make and more than enough to live on - I don't care where you live in the U.S.! Link to comment Share on other sites More sharing options...
wagnfun Posted October 15, 2008 Share Posted October 15, 2008 Doing well yes, wealthy off.. no. I'm in the heart of the OC. I am not far from where Rick Warren held the infamous talking the prez hopefulls. In this area 650-750K for a house is on the high side of normal. Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 Adding this - even if you had to pay $500,000 for a house, your mortgage payment would be $40,000 per year. That leaves you 69,000 for daily living expenses - still more than twice what we make. Link to comment Share on other sites More sharing options...
sdWTMer Posted October 15, 2008 Share Posted October 15, 2008 I think that the real question should be, do you think $42,000 is wealthy? Link to comment Share on other sites More sharing options...
Murphy101 Posted October 15, 2008 Share Posted October 15, 2008 Yes. Even if you: Pay 35% in taxes on the TOTAL amount (FICA, Fed, and State) - $89,375 (Standard deduction, family of 4, self-employed as sole prop, student loan interest deduction and self-employed health insurance deduction. It would probably be a lot lower than this using allowable deductions, tax sheltering business structure, etc.) Pay $1800 a month in student loans ($150,000 over 10 years) - $21,600 Pay $2500 a month for health insurance - $30,000 You still "net" $109,000 which is WAY more than we make and more than enough to live on - I don't care where you live in the U.S.! Yes, that's what I was thinking.:) I absolutely think it's at least low to moderately wealthy. Kind of like being lower to middle middle class I suppose, only up in the next class bracket? Link to comment Share on other sites More sharing options...
sdWTMer Posted October 15, 2008 Share Posted October 15, 2008 or San Diego, CA or San Fran, CA Link to comment Share on other sites More sharing options...
RebeccaC Posted October 15, 2008 Share Posted October 15, 2008 I think it depends on where you live. My husband's family live in the San Fran area and it is not wealthy there. Here in the far Chicago burbs area it would be upper middle class maybe... In Lincoln park area in Chicago I don't think you would be considered wealthy at all. Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 I think that the real question should be, do you think $42,000 is wealthy? Wealthier than me!:lol: Link to comment Share on other sites More sharing options...
Margaret in GA Posted October 15, 2008 Share Posted October 15, 2008 I do think it's wealthy. Is it stinking rich? No. Margaret Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 or San Diego, CAor San Fran, CA So there are some DESPERATELY poor people in those areas because I imagine that retail clerks, food service workers, etc. don't make anywhere near even a quarter of that? Link to comment Share on other sites More sharing options...
MJN Posted October 15, 2008 Share Posted October 15, 2008 agree that it all depends on where you live. Link to comment Share on other sites More sharing options...
Confuzzled Posted October 15, 2008 Share Posted October 15, 2008 Yes. But I also think that almost every one of us living in this country is wealthy by global standards. Even the poorest in this country have enough food to prevent starvation, clean water, clothing, and shelter. Not so for a large percentage of the population of the rest of the world. We are all extremely blessed! Kris PS- I don't think health insurance premiums correlate with income. Our self-employment income is a small fraction of 250k and we pay through our noses for insurance. Link to comment Share on other sites More sharing options...
sleepy Posted October 15, 2008 Share Posted October 15, 2008 yep. I think $250,000 is wealthy. Link to comment Share on other sites More sharing options...
KS_ Posted October 15, 2008 Share Posted October 15, 2008 Yes. Even if you: Pay 35% in taxes on the TOTAL amount (FICA, Fed, and State) - $89,375 (Standard deduction, family of 4, self-employed as sole prop, student loan interest deduction and self-employed health insurance deduction. It would probably be a lot lower than this using allowable deductions, tax sheltering business structure, etc.) Pay $1800 a month in student loans ($150,000 over 10 years) - $21,600 Pay $2500 a month for health insurance - $30,000 You still "net" $109,000 which is WAY more than we make and more than enough to live on - I don't care where you live in the U.S.! Yep, way more than what we make . . .I would consider $250,000 wealthy. Dh doesn't make near the $109,000 figure above and although we are still paying on student loans and have to pay our own health insurance, I still feel we are very blessed. Link to comment Share on other sites More sharing options...
Amber in SJ Posted October 15, 2008 Share Posted October 15, 2008 Too much depends on where you live. Here in the Bay Area small homes (like mine, 1200 sq ft) run about $650K. We make considerably less than $250K (a fraction) and we consider ourselves to be middle class, but feeling the pinch. As for people who are in blue collar jobs being poor in this area? Think about this: to qualify for a habitat for humanity home you must make less that 50% of the median income for your area. Two homes were recently built here and they went to a manager of the produce dept of a grocery store, and to a teacher. Of course I understand that we choose where we live, but DH's job doesn't really exist anywhere else and both of us are natives & love it here. We know plenty of people who make $250K or close to it & they are not wealthy. If you have two high-tech careers it is not difficult to do. Most of them go about their business, paying taxes and contributing to charities. Some of them are running businesses; providing jobs, paying for health care for themselves and their employees. It all depends on where you live if $250K is wealthy. Amber in SJ Link to comment Share on other sites More sharing options...
LizzyBee Posted October 15, 2008 Share Posted October 15, 2008 (edited) I would consider it wealthy, but I tend to define wealth from more of a global perspective. Regardless of where one lives in the US, most people making $250k will own a home (even if it's not their dream home), eat 3 square meals a day, own one or several cars, have decent clothes to wear, have access to medical care, own at least one computer, have cell phones and cable tv, etc. Even if they are broke by the end of every month, they will have all their basic needs met and most likely a little extra (or a lot extra, depending on where they live). I used to know someone whose husband was making $350,000-$450,000 a year and she thought she was living in poverty. Seriously. It all depends on your perspective. Edited October 15, 2008 by LizzyBee correct a whopping grammar error Link to comment Share on other sites More sharing options...
Pam "SFSOM" in TN Posted October 15, 2008 Share Posted October 15, 2008 I was talking to a friend today and she made a comment about $250,000/year being wealthy. I disagreed. Not when you take into account the student loans someone making that much probably has and health insurance costs. My friend only pays $40/month for health care so she agreed that she has no idea what it is like for the average American who has to pay for their own hc. What do you think? Is $250,000 for a family wealthy or firmly middle-class? We currently have just over $24K/year of income. It covers our mortgage (2BR 2B full basement condo), car payment, food, utilities, insurances. Health insurance is covered. We pay a little each year (outside of scholarships and financial aid) for the kids' private school and college education. When I'm employed, we'll just barely over double this for a few years, based on job availability and pay for a new grad here in E. Tn. So yeah, for me, I can't even imagine that kind of money in a year. I don't see it as middle class. I think it's probably about perspective, though. Link to comment Share on other sites More sharing options...
Colleen Posted October 15, 2008 Share Posted October 15, 2008 I know people in many regions (including mine) believe otherwise, but as far as I'm concerned, $250,000 a year is wealthy. It depresses me that anyone wants to classify this kind of income as middle-class. Hogwash. Link to comment Share on other sites More sharing options...
TraceyS/FL Posted October 15, 2008 Share Posted October 15, 2008 Really? I consider anything over $125K "wealthy". Middle class to me is 40-80K, upper middle class 80-125K. It doesn't matter where you live, the cost of living is all relative, and each one of us has a choice to reside where we do. It does matter where you live when an 1100sf house cost over $300,000 (and i'm talking one of the last cheap areas on the Central Coast of CA) And often, a person can't just up and move. It very MUCH does relate to where one lives. Wealthy means very affluent, rich. Maybe in the land where houses are under well under $300,000, health insurance isn't $14,000 a year and property taxes aren't $10,000 a year it's rich. :iagree: So there are some DESPERATELY poor people in those areas because I imagine that retail clerks, food service workers, etc. don't make anywhere near even a quarter of that? Pay scales vary by location. What i made at Best Buy in CA on that scale, can't be TOUCHED here for the same position (i asked, they want me to go back to work for them here). It would be about $4-5/hour LESS. Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 I looked up San Francisco, and only 7% of the population makes more than $200K, about the same as those earning $20-30K. Most households were in the $100-150K range, so that would be middle class. So, even in San Francisco it would put you at the top of the heap. Link to comment Share on other sites More sharing options...
Amy in NH Posted October 15, 2008 Share Posted October 15, 2008 Absolutely! A family health insurance plan is somewhere around $1200/year. The median debt for a medical student is more than $120,000 after medical school. (http://www.medical-school-reviews.net/cost-of-medical-school.html), which is considered among the most expensive of degrees. So, if you consider 250,000-121,200=$128,800, you could pay off your entire student loan debt in one year, while carrying family health insurance, and still be very well off. Yes, an annual $250,000 income is wealthy. Link to comment Share on other sites More sharing options...
CAMom Posted October 15, 2008 Share Posted October 15, 2008 Doing well yes, wealthy off.. no. I'm in the heart of the OC. I am not far from where Rick Warren held the infamous talking the prez hopefulls. In this area 650-750K for a house is on the high side of normal. :iagree: I'm in OC, too. 250K is definitely doing very well but is not wealthy here. I do realize, though, that in some places, it's stinkin' rich! We have considered moving to a lower cost of living area but we do not have that liberty right now. I am the caregiver for my 87 year old grandmother. There is no way I could leave her and she would not be capable of moving. I also have my dad and stepmother close by here (within a few miles). My dad has Alzheimer's and my stepmom has lung cancer. I'm the only one local of the siblings so there's no way I could leave them. So, "wealthy" depends on the area in which you live and not everyone can choose where they live.:) Link to comment Share on other sites More sharing options...
elegantlion Posted October 15, 2008 Share Posted October 15, 2008 I tell you what, I volunteer my family to do an experiment. If someone wants to put up the 250K for the next year I'll gauge whether I think it is truly wealthy or not. I promise to report back in twelve months. :D:D Link to comment Share on other sites More sharing options...
Renee in NC Posted October 15, 2008 Share Posted October 15, 2008 I tell you what, I volunteer my family to do an experiment. If someone wants to put up the 250K for the next year I'll gauge whether I think it is truly wealthy or not. I promise to report back in twelve months. :D:D :lol::lol::lol::lol: No, no. You have to have MULTIPLE families in various parts of the country try it. I volunteer for NC! Link to comment Share on other sites More sharing options...
cathmom Posted October 15, 2008 Share Posted October 15, 2008 Drama Queen is right. There is no argument here AT ALL! :auto: Link to comment Share on other sites More sharing options...
JFSinIL Posted October 15, 2008 Share Posted October 15, 2008 If you make far less, as we do, then it IS wealth!!!! Link to comment Share on other sites More sharing options...
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