In my mind, rich/wealthy is the point at which money no longer appreciably makes you happier and/or improves your quality of life. I think there was a study done recently where it showed that the point in which diminishing returns for the happiness money provided people began at 75K. Sounds about right.
What do *rich* people spend/blow their money on? Let's define rich as $500K per year ($40K per month) net. $10K/month - 25% on mortgages on primary and vacation homes $2K/month/child - private school $4K/month - nanny $2K/month - golf country club $2K/month - horse $1K/month - boat slip etc.
vacations, expensive dinners, asian concubines, wine, art, colombian side piece, expensive car payments, private flights to aspen, hosting events at house, etc
Rich i believe is when you can go out and buy expensive and high priced things without having to worry, plan, or budget anything. For example if i just wake up one morning and say hey, i wan to go buy a new porsche. Then go to the dealer pull out 90k and go to the dealer and buy one, thats what i would say is rich. 100K you cannot do something like that, 100K isn't as much as you think, you still have to budget, save up for things, etc. I would say 250k+ would be minimum rich depending on your living style.
i have a cousin, married with 2 kids, a dog, makes 45k/year. he has a mortgage, cable, a 2010 Audi (bought right after having paid off a previous car), and iphones for him, his wife, and 12 year old daughter. he complains about his money issues. his wife refuses to work but wants to live the high life. smh.
I dont know how you guys can say somewhere in the ballpark of 100k is "rich"...You're basically living in a small place, with very little being spent on kids, cars, entertainment, living expenses (electricity, gas, internet, phone), food, any student loan debt, etc... With 100k, your take home is under 6k a month...you cant possibly consider yourself rich from a financial perspective.
That I can agree with...but since this thread is about income in order to be considered rich, then Im confused by those saying 100k.
that's the Patrick Ewing philosophy. "Sure we make a lot of money, but we spend a lot of money too" It is funny how your expectations change though as you make a little more coin.
I think $100k is more than enough to be comfortable in Houston. But that's not rich. $200k is upper middle class. $400k or so is what you need to be in the 1%. I guess you can term that rich. But you probably won't feel rich making that much since you still have to worry about college tuition, mortgage, etc. You'll probably start feeling rich around $1m a year but you're still beholden to working. If you stop working then that goes away. In my mind, passive income through investments or business is what I want. And I want enough passive income to do what I want... not just sit around at home watching Oprah because I can't afford to go on vacations. And I use the term wealthy for that.
Lol 50K a year is more than enough if one lives within their means. I make around that much and live well. Have a decent house paid for. 2 other houses that we rent out. A business that my wife has made very successful. Both vehicles that are paid for. In fact everything is paid for. Money in the bank. Decent retirement account. I and my wife have discussed about me retiring at 60. (I am 53 now) Maybe just work nearby for insurance and some spending money for me to golf and fish. Maybe open 2-3 other businesses and let her manage and run them and I just come fix problems that crop up. Again though no borrowing of money. Not sure what I will do but the options are there. My best friend since we were kids lives in South Shore. His wife wanted to live in the gated community on the golf course. Nice house he has I admit. When she needed a new car she had to have a Mercedes. He at first said no but of course relented and got her one with all the options. Her kids she had before they married all of a sudden had to go to private school. Made no difference that League city has one of the best schools around. He makes around 150,000 to a bit more in some years. His mortgage should be paid off in about 8 more years. His monthly bills makes me shake my head. Oh and she has said I am not allowed in her house. No reason given except I am a bad influence. Recently he and I was chatting over beers at my house and I told him that maybe I was going to retire early. He laughed and said that he wished he could but that he will have to die to get everything paid for. I worry about him as he has heart problems and high blood pressure and other health issues. My health is good per my last physical except I am getting arthritis. I am extremely happy with my life. I thank God daily for everything and also pray for my friends. I feel fortunate.
Nice post, thanks for sharing. We finally paid off all our debt (besides the mortgage) last month. HUGE relief. It's only been a month and I can already tell that our money is going a lot farther than it used to without all those damn payments. I also got a big promotion with a nice payraise at work. I start on 9/16. The extra income will be very nice. Still not "rich" by any means, but very happy. My job requires no nights, weekends or travel so I get maximum family time on the weekends. That's much more important to me than what kind of car I drive.
I think that's a key point. It seems like too many people equate less income with a bad life. Of course if you're at the poverty line and living paycheck to paycheck then it's harder to live the life you want. But if you're living within your means and have the right mindset then you'll be happy. Some people go to the opposite extreme though and assume that if you make a lot of money that you're giving up too much to make that money. It is possible to have a high income in a job that requires no nights, weekends or travel.
Well put, but that's an ant sitting on the sidewalk staring up at that threshold, my friend. Now, if it happened to be $100K a year in passive income (the return on investments, inherited income producing entities, etc.), then you would certainly be a millionaire on paper. I'd be comfortable with that.
Lol Thanks for the kind words. Awesome for you and many congrats. I love hearing how people are doing well. Tackling and overcoming debt will maybe be the most important and satisfying event in your families life. Bravo!
I can honestly say that I felt rich even when I was making less than that. I was literally able to do everything I wanted and had time to do. But, I think it depends on the person. I have friends and family that earn less than half of what I do and have bigger and shinier things. But, I never stress over money when on vacation and I can afford any local activities I want. And, the 1%ers I've met live the same way average America does, except everything they buy (clothes, cars, jewelry, homes) is simply more expensive. Honestly, considering work load, I believe those of us making $100k-$400k are far happier than those making $700k-$2MM (excluding those that own their own business). It ain't trickin' if you got it?
I'd be content with $60k a year as a single person. Its awesome how low the cost of living is in Houston.
