Are you the 1%?

[Totoro]

Living in a very cost of living area like SF is a luxury unto itself. It is like complaining about the cost to insure and maintain a Rolls Royce.

+1

Choosing to be house poor is just that, a choice. Choosing to live in the sub-1% most expensive real estate in the USA/world is well .. also a choice.

 

[exnavynuke]

Really? You don't know "anyone" with ~$372k and you live in the US?.

Around 1/2 my friends have military retirement checks and pull in close to or over 6 figures from their day jobs and I'd wager that most of them have much less than $100k net worth outside of their homes. They do generally have big houses, 2-3 cars, 5-7 flat screen TV's throughout their houses etc though.... heck, at least one of them I'm certain still lives paycheck to paycheck.

I have 1 friend that is actively trying to increase his net worth and he'll be FIRE ready around the same time as me.

 

[travelover]

If one has read the Millionaire Next Door, you know that looks can be deceiving. I seriously doubt that most people that know me have a clue of my net worth with my 10 year old Ford, ragged jeans and cheap smartphone.

 

[Meadbh]

I'm not privy to most peoples savings accounts but there is no one i'm aware of that has that much in savings/investable assests. I'm not counting home equity. I live in small town Wisconsin and don't know anyone with a six figure income either so that has a lot to do with it. I have less than half the $372K and I have more than the majority.

While your friends and relatives may not have $372K in net worth, or have a six figure income, there are probably many people in your community who do. People who run successful businesses. Professionals such as your doctor (assuming he/she has been in practice for some time). Your dentist. Lawyers. Undertakers. Etc. They may not flaunt it.

 

[Music Lover]

I know countless people who have minimal savings and/or investments that have a fully paid off house and a decent COLA pension. If they sold their homes and converted the value of their pension to a lump sum, they would all be millionaires.

 

[aaronc879]

While your friends and relatives may not have $372K in net worth, or have a six figure income, there are probably many people in your community who do. People who run successful businesses. Professionals such as your doctor (assuming he/she has been in practice for some time). Your dentist. Lawyers. Undertakers. Etc. They may not flaunt it.

I'm in my 30's and most people I know are in their 30's or early 40's. Maybe they just haven't had enough time to reach the higher savings yet. I took the time to think about everyone I know and I definitely don't know anyone with a six figure income. In fact I only know one person who makes over $70K/yr and there is no way that persons investable net worth is even close to $372K.

 

[travelover]

......... Undertakers. Etc. They may not flaunt it.

I've noticed that my local undertaker drives an expensive Cadillac station wagon and usually wears a nice suit.

 

[JoeWras]

"don't know anyone..." That's interesting. It means you ask everyone their net worth?

I've never asked that question to anyone, friend, family or foe in my life.

I suspect there are a lot of people in my neighborhood who are like me, with a decent NW but are not flaunting it. Looks mean nothing.

 

[Meadbh]

I've noticed that my local undertaker drives an expensive Cadillac station wagon and usually wears a nice suit.

It's a recession proof business.

 

[travelover]

But is your case for your cheap smart phone a ziploc bag?

No, I don't want to be a show off.

 

[daylatedollarshort]

No, I don't want to be a show off.

I deleted my post because I thought it might be a bit over the top, but I really do just have my cheap smart phone in a ziploc. Actually it is not even a ziploc. I think it is an Ikea plastic bag.

 

[exnavynuke]

"don't know anyone..." That's interesting. It means you ask everyone their net worth?

I've never asked that question to anyone, friend, family or foe in my life.

I suspect there are a lot of people in my neighborhood who are like me, with a decent NW but are not flaunting it. Looks mean nothing.

Do you claim to know everyone who you meet/see/encounter? If I said "I don't know anyone that won the lottery" I wouldn't be claiming that no one I'd ever encountered in my life had won the lottery, I would be stating that none of my family/friends that I "know" had done so.

 

[2017ish]

I deleted my post because I thought it might be a bit over the top, but I really do just have my cheap smart phone in a ziploc. Actually it is not even a ziploc. I think it is an Ikea plastic bag.

I use a ziplock to keep my phone dry when I run or work outside--does that count?

 

[MichaelB]

You all have a cell phone and an ziplock bag? Luxury!

 

[Bigdawg]

I'm in my 30's and most people I know are in their 30's or early 40's. Maybe they just haven't had enough time to reach the higher savings yet. I took the time to think about everyone I know and I definitely don't know anyone with a six figure income. In fact I only know one person who makes over $70K/yr and there is no way that persons investable net worth is even close to $372K.

Looks can be very deceiving. On the surface a guy who works for me would seem to have a higher net worth. He has a brand new Dodge 3500 to tow his 3 year old 34' fifth wheel. He has a used BMW convertible along with a 6 yr old Honda Gold Wing. His wife drives a 3 yr old Jeep Cherokee. Their house is a two story 3/3 with full basement and 2 stall attached. He works for me and I know he basically doesn't have a p.. t. p... in. If he cashed out everything today he would have 2k in his pocket and less than 50K in his 401K. I on the other hand drive a 17yr old Chevy truck, DW a 7 yr old Acadia. 100K/yr sit on the couch and watch Oprah pension(COLA) (DW and I combined) and a couple hundred K total in 401K's and another couple hundred K in combined home equity (3 properties). Now from the outside looking in who looks richer?

An additional thought is "I don't care". A few years ago when all the occupy wall street stuff was happening I looked up where we stood but other than that I really don't care. We are all so blessed to live in this country of vast opportunity. I lucky and I know it.

 

[2017ish]

You all have a cell phone and an ziplock bag? Luxury!

Hey, we gotta spend the money somewhere!

 

[template]

If one has read the Millionaire Next Door, you know that looks can be deceiving.

Loved that book!

I seriously doubt that most people that know me have a clue of my net worth with my 10 year old Ford, ragged jeans and cheap smartphone.

We're in the same boat, but my Ford is a little newer and I don't own a smartphone.

 

[RobbieB]

I never read the book, just the excerpts. I am the book. I have a brand new Google Pixel and a free VR thingy and my phone is in a factory polycarbonate clear case.

Yeah Baby! I did the frugal and now it time to "blow that dough"!

Nah, I'm not a 1%er, I just have a very small overhead and a large "discretion" -

 

[robnplunder]

If you are not happy or healthy, then belonging to top 1% is just a meaningless stat. I know many 1 percentors who live a life at the bottom (mean, stingy, climbing over others dead & fallen bodies, accumulating wealth without being generous or even enjoy, ...). What's the joy in having $10 million if you live like you make $20000 a year?

 

[NW-Bound]

I use a ziplock to keep my phone dry when I run or work outside--does that count?

You all have a cell phone and an ziplock bag? Luxury!

I am saving money to buy a smartphone. While waiting, I guess I can go ahead to get that ziplock bag.

If I fail to get enough for the smartphone or change my mind, that ziplock bag can be repurposed for another use, so will not go to waste.

Is that not a plan?

 

[daylatedollarshort]

Living in a very high cost of living area like SF is a luxury unto itself. It is like complaining about the cost to insure and maintain a Rolls Royce.

I didn't see jkern's post as complaining. It is just that is not easy to "rebalance" a personal residence. In the Bay Area it is not that uncommon to see $1M+ homes in disrepair with elderly residents, peeling paint and dead lawns. After the original owners die, enter senior housing or a nursing home or decide to sell the houses usually get fixed up and flipped. Sometimes these houses were bought for $50K or less so the original residents were not necessarily ever high income types like the more recent purchasers have to be.

 

[Danmar]

If you are not happy or healthy, then belonging to top 1% is just a meaningless stat

What's the joy in having $10 million if you live like you make $20000 a year?

Agree, but many people in the top 1% live below their means. Maybe not to the extent of your example. Makes a lot of sense in the accumulation phase but perhaps less in retirement? Anyway, how the wealthy live is a pretty personal thing as we have discussed many times. Appearances can certainly be deceiving, often intentionally so.

 

[travelover]

I didn't see jkern's post as complaining. It is just that is not easy to "rebalance" a personal residence. In the Bay Area it is not that uncommon to see $1M+ homes in disrepair with elderly residents, peeling paint and dead lawns. After the original owners die, enter senior housing or a nursing home or decide to sell the houses usually get fixed up and flipped. Sometimes these houses were bought for $50K or less so the original residents were not necessarily ever high income types like the more recent purchasers have to be.

I get that, but we were talking about how much in assets one needs to be wealthy. Whether you bought stock or a house 40 years ago, if the asset has appreciated to be worth a million dollars, you now have a net worth of a million dollars. One can choose to live in the expensive house and get by or move to a lower cost of living area and use the excess for other things.

 

[Totoro]

I am saving money to buy a smartphone. While waiting, I guess I can go ahead to get that ziplock bag.

If I fail to get enough for the smartphone or change my mind, that ziplock bag can be repurposed for another use, so will not go to waste.

Is that not a plan?

While we are smartphone bragging .. I bought a new battery for my three year old Samsung mini. For $30 a good-as-new phone!

 

[travelover]

While we are smartphone bragging .. I bought a new battery for my three year old Samsung mini. For $30 a good-as-new phone!

What!? No used batteries available?