Who counts as Rich?

[walkinwood]

A couple of articles from the NY Times.
Interesting read, but not particularly useful for ER research.

The median threshold in the poll’s responses was that rich is $150,000 a year of income or a net worth of $1 million.

Who Counts as 'Rich'? - NYTimes.com
Bruce Bartlett: Who Counts as Rich, Continued - NYTimes.com

This isn't about how "you" or "I" feel about the definition of Rich - it is the median based on Gallup poll.

 

[pimpmyretirement]

Note that the $150k is for total household income.

 

[Andre1969]

Well, $150K per year of household income and/or a net worth of $1M is a lot more than most people have, so I can understand how it would seem like "rich" to them. But, I have a feeling that if they ever got to that income/asset level, they'd come to the realization that it doesn't feel as "rich" as they once thought it did.

Heck, I remember when I thought that $100,000 was a lot of money. But, not to sound like a snooty trust fund baby, if that's all I had today, I'd feel poor!

 

[Birchwood]

it all depends. There's a lot written about what people think is rich.
For somebody living on minimum wage, 100K may be rich.
For someone making 1M a year, it maybe 5M a year.
For somebody with 50K in the bank, 1M may be rich.
For somebody with 1M, they may think 10M is definitely rich.

We also have to distinguish lifestyle VS actual liquid asset.

A lot of folks look rich but in their eyeball in debts. Few folks who drives mercedes are actually millionaires. The most common vehicle driven by
mllionaires is Ford Taurus and F150 pickups.(According to an article I read).

 

[pb4uski]

It reminds me of a saying I heard long ago when I was younger - something about that when I earned $50,000 a year that I would be on easy street, working hard and finally achieving $50,000 a year of earnings but finding out that they moved the street!!

It is all relative. While I feel blessed for what I have earned and saved relative to those who are less fortunate, I know that there are many people out there who have much more material riches than I have.

 

[easysurfer]

I think the net worth is a better indicator. How many times have we heard of celebrities (actors, atheletes) who make megabucks but end up broke by over indulging.

 

[nun]

There's an interesting contradiction between the income number and net worth in that I'd only be comfortable taking $40k or maybe $30k income a year given a net worth of $1M. When I ER I expect to have $1M in investments, but my income will be $30k. I suppose I'll be capital rich but income poor.

 

[tightasadrum]

As stated earlier, without the level of spending defined, "rich" is meaningless.

 

[Animorph]

I think "rich" would at least include FI without having to w*rk, though obviously some kind of higher living standard is necessary as well. But I suppose to a 30 year old making $40k/year, a 65 year old with $1M and spending $40k/year does kind of seem rich. Some guy with $1M spending $150k/year is not FI and not "rich", at least for long.

 

[l2ridehd]

It is also very dependent on your point in time of career and life. If you are ready to retire and are making 150K with 1M in assets, you will probably have to live fairly frugal the rest of your days. If your 30 and have that then if not rich you are well on your way to being rich.

 

[ziggy29]

Anyone who makes $1 more than me!

Seriously, though, it's not that simple as defining a hard figure based on income or net worth. Some folks can lead "rich" lifestyles on incomes less than $100K and net worths under $1M. Some folks don't feel "rich" with 5x those amounts because they want a lifestyle that even the higher income won't provide.

To some degree, "rich" is a state of mind -- if you have enough abundance that you freely enjoy what you derive enjoyment and peace of mind from in your life, you feel "rich".

 

[MichaelB]

Anyone who makes $1 more than me!

I'll send you the $1 - then you'll be rich too

 

[ronocnikral]

well, in my new 'hood, it ain't me. I still drive the same car I had in college. Everyone else rolls in benz's, escalades and jags.

I do think, however, Thoreau said it best.

A man is rich in proportion to the number of things he can afford to let alone

 

[JustCurious]

If you are ready to retire and are making 150K with 1M in assets, you will probably have to live fairly frugal the rest of your days.

Not if you were spending 50k, you could continue to live the same lifestyle for a very, very long time.

 

[East Texas]

We don't owe anyone anything, we have the freedom and enough money to do what we want when we want, and we're healthy. Puttting a number on that really doesn't do anything for me; however, sitting on the porch with my sweetie watching the pups chase birds out in the hay meadow or standing by the lake just doing nothing - priceless.

 

[Leon44]

These type of surveys don't consider what part of the country you live in. 150K and or 1 million goes allot further in the midwest then it does in New York city, San Fran or Washington DC. Just housing alone can be 2-3 times more..... private schools, commuting etc....I'm sure some folks that work in Manhattan pay more for their parking then some folks pay for housing elsewhere.

 

[Midpack]

Like others have said, it's all relative. My first engineering job out of college paid me $1275/mo, quite a bump from living well enough on about $300-400/mo in college. I distinctly remember thinking 'how am I going to spend all this?' In the first months, I rented an apt (no roommates for the first time), bought a late model used car, a new tennis racket and new golf clubs. Not sure I ever felt richer than back in those days...seriously.

 

[Bluemoon]

I have everything that I want or need, the love of a good woman, no debts, my children are doing OK. That's enough riches for me.

 

[james7]

We don't owe anyone anything, we have the freedom and enough money to do what we want when we want, and we're healthy. Puttting a number on that really doesn't do anything for me; however, sitting on the porch with my sweetie watching the pups chase birds out in the hay meadow or standing by the lake just doing nothing - priceless.

Your post is priceless!!

 

[East Texas]

My first job paid $.80/hr. Yes, that's eighty cents an hour. When I got a $.05 raise I thought I was in financial heaven.

 

[james7]

it all depends. There's a lot written about what people think is rich.
For somebody living on minimum wage, 100K may be rich.
For someone making 1M a year, it maybe 5M a year.
For somebody with 50K in the bank, 1M may be rich.
For somebody with 1M, they may think 10M is definitely rich.

We also have to distinguish lifestyle VS actual liquid asset.

A lot of folks look rich but in their eyeball in debts. Few folks who drives mercedes are actually millionaires. The most common vehicle driven by
mllionaires is Ford Taurus and F150 pickups.(According to an article I read).

I have met many people in business whose families have inherited money in trust funds. Most of these people then went on to become well educated high income professionals. It still amazes me to see what type of cars these people drive. Usually very ordinary cars with an emphasis on high gas mileage. Some of the cars, half of the posters on this board probably wouldn't even be seen in.

 

[East Texas]

I have met many people in business whose families have inherited money in trust funds. Most of these people then went on to become well educated high income professionals. It still amazes me to see what type of cars these people drive. Usually very ordinary cars with an emphasis on high gas mileage. Some of the cars, half of the posters on this board probably wouldn't even be seen in.

I'm a happy camper if I get 15mpg in my '96 Land Cruiser. A high-mileage city car couldn't even get down our county road.

 

[W2R]

I think there are two facets of being rich: how much you have, and how much you need/want to be satisfied. If you have enough money and income to buy anything you need/want for the rest of your life, you are rich no matter how much or how little that is.

One person might be rich with $1,000,000 if his wants are few and he is a happy, contented person. He only spends $25K out of his $40K/year SWR and can't think of a single thing that he wants and doesn't have.

Another person with the same $1,000,000 might not be rich at all, because he has developed a taste for big houses and expensive cars (boats, private planes, high maintenance women, etc) and feels deprived without them.

"My greatest skill in life has been to want but little” ― Henry David Thoreau, Walden

 

[Aiming_4_55]

Hmmmmmmm.... what if I legally change my name to Rich?

It's all relative to one's values & needs. In college (late 80's), I though it was great getting $8 bucks an hour, then full time work at $22k.

 

[Chuckanut]

Remember the TV show "The Millionaire". People were given a million dollars by an unknown benefactor. At that time (the 1950's) the standard thinking was that one was set for life. No more financial problems. Today, a million just ain't worth what it was. One can easily go through million dollars in 10-20 years of middle class living. Hey, a million here and a million there... pretty soon you are talking real money.