How do you define being rich?

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 12:04pm

In light of the taxes on the rich thread, I was curious about how you define being rich? How much money does someone have to make before they are considered rich. Mind you this will vary dependin on local cost of living. Here is my breakdown:

$0 - 24,000 / year. ---- Poverty. ( I hope you are a student. )

$24,000 - $40,000 / year --- Working class Wages

$40,000 - 120,000 / year --- Low end to mid range middle class

$120,000 - 160,000 / year --- Upper Middle Class

$160,000 - $200,000 / year --- Well off

$200,000 - $300,000 / year --- Wealthy

$300,000 + --- Rich

PS: Oh yeah, this is for a family of two with a single child. Two at most.

Knife · Post by **Knife** » 2003-05-29 12:15pm

Those who do not worry about paying bills, rather they worry about how to adaquetly invest and create more wealth would be considered rich in my book. Depending on geography, some where around 100 grand to 200 grand a year will get you into that range.

Zoink · Post by **Zoink** » 2003-05-29 12:35pm

You spend how much you want, not how much you need.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 12:44pm

Knife wrote:Those who do not worry about paying bills, rather they worry about how to adaquetly invest and create more wealth would be considered rich in my book. Depending on geography, some where around 100 grand to 200 grand a year will get you into that range.

That's a good point. I would not meet my "dictionary" definition of being rich if I made 75K / yr, but you can bet, I would not bee stressed about paying my bills.

Col. Crackpot · Post by **Col. Crackpot** » 2003-05-29 12:50pm

to be *Rich* as far as i am concerned, not only means a high income, but assets as well. if you make $300,000 a year, but are half a million in the hole you are not rich. however if you only make $45,000 a year but have a million dollars socked away in the bank, then you are rich.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 12:58pm

Col. Crackpot wrote:to be *Rich* as far as i am concerned, not only means a high income, but assets as well. if you make $300,000 a year, but are half a million in the hole you are not rich. however if you only make $45,000 a year but have a million dollars socked away in the bank, then you are rich.

Of course net worth does enter into the picture. I thought it would be simpler to list wages. Most people I would guess dont give a second thought to net worth until they are in their mid-late 20's.

Of course if you have a million dollar home and only make 45,000 you are going to be stressed to make the property tax payments.

Id rather have the million socked away in the bank.

NapoleonGH · Post by **NapoleonGH** » 2003-05-29 01:20pm

Trailer, im sorry to say but you have a very skewed version of what is rich, as i must say, I should to.

Basically anything between 90k-130k a year is UPPER middle class in today's society, above that is lower upper class/ begining of "rich". The vast majority of people are making under 60k a year so anything over 100k seems like rich to them. Basically if you can afford to send your kids through college without financial aid, or could afford to buy them a new car when they got their liscense, you are rich.

theski · Post by **theski** » 2003-05-29 01:30pm

I am in the camp of It has to be liquid.. Having a million tied up in a 401k or stocks is very different from having complete access to it..

And debt load as others have said is a big factor..

Knife · Post by **Knife** » 2003-05-29 01:33pm

NapoleonGH wrote:Trailer, im sorry to say but you have a very skewed version of what is rich, as i must say, I should to.

Basically anything between 90k-130k a year is UPPER middle class in today's society, above that is lower upper class/ begining of "rich". The vast majority of people are making under 60k a year so anything over 100k seems like rich to them. Basically if you can afford to send your kids through college without financial aid, or could afford to buy them a new car when they got their liscense, you are rich.

Its subjective, I think. Ask someone who makes, say 90 grand a year if he is rich. I douby he will think so. But in my view, he makes about 30 grand more than me so he must be better off and therefore rich.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 01:52pm

NapoleonGH wrote:Trailer, im sorry to say but you have a very skewed version of what is rich, as i must say, I should to.

Basically anything between 90k-130k a year is UPPER middle class in today's society, above that is lower upper class/ begining of "rich". The vast majority of people are making under 60k a year so anything over 100k seems like rich to them. Basically if you can afford to send your kids through college without financial aid, or could afford to buy them a new car when they got their liscense, you are rich.

Read my post, my view is skewed because of local cost of living in my area. The median home price in my country is around $485,000. That is median home price, not new home price. $50,000 is about the lowest you can make here and not have to live in a bad neighborhood or have room mates.

If you make 100,000 / year here and have two kids. You are solidly in the middle class for this area. The whole reason I asked is because I was curious about how local living conditions affect your view of what "rich" is. Stravo mentioned that he is approaching 6 figures in income and is by no means on easy street.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 01:53pm

Knife wrote:
NapoleonGH wrote:Trailer, im sorry to say but you have a very skewed version of what is rich, as i must say, I should to.

Basically anything between 90k-130k a year is UPPER middle class in today's society, above that is lower upper class/ begining of "rich". The vast majority of people are making under 60k a year so anything over 100k seems like rich to them. Basically if you can afford to send your kids through college without financial aid, or could afford to buy them a new car when they got their liscense, you are rich.
Its subjective, I think. Ask someone who makes, say 90 grand a year if he is rich. I douby he will think so. But in my view, he makes about 30 grand more than me so he must be better off and therefore rich.

You ever hear that a rich person is someone that has 1 more dollar than you?

Post by **Sea Skimmer** » 2003-05-29 03:49pm

When I have all the money, and the earth's population are serfs within my Empire I'll feel rich and satisfied.

As for other people, I would say if your making 200k + a year your rich.

Joe · Post by **Joe** » 2003-05-29 03:52pm

The $0-24,000 figure is WAY too inclusive, I think, that would put something like 40% of this country below the poverty line.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 04:01pm

Durran Korr wrote:The $0-24,000 figure is WAY too inclusive, I think, that would put something like 40% of this country below the poverty line.

Forgive me, what does inclusive mean?

Wages that low here are restricte to part time workers, students, etc. Thats less than $12/hr full time.

Joe · Post by **Joe** » 2003-05-29 04:07pm

Forgive me, what does inclusive mean?

In this case, more willing to include greater numbers of individuals.

Andrew J. · Post by **Andrew J.** » 2003-05-29 05:40pm

When I can throw away SUVs and buy new ones every day, then I'm rich.

Joe · Post by **Joe** » 2003-05-29 05:43pm

Also, I would say that having an income of $300,000+ a year doesn't necessarily make you rich; I would bet that there are some folks who were pulling in that kind of cash during the dotcom boom who would hardly be considered "rich" today. You have to save to generate wealth, which is what really makes you rich.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 05:47pm

Durran Korr wrote:Also, I would say that having an income of $300,000+ a year doesn't necessarily make you rich; I would bet that there are some folks who were pulling in that kind of cash during the dotcom boom who would hardly be considered "rich" today. You have to save to generate wealth, which is what really makes you rich.

I have a friend who works in stock option administration. He has lots of stories of people completely blowing their options. Either they let them expire and lose out on hundreds of thousands of dollars in long term capital gains. Or they excercise and hold without reserving enoungh to pay for taxes, then when the price drops they dont have the money.

Those folks are most definately not rich.

Post by **LadyTevar** » 2003-05-29 08:58pm

Durran Korr wrote:The $0-24,000 figure is WAY too inclusive, I think, that would put something like 40% of this country below the poverty line.

it's called "Working Class Poor"

I've got a Government job, working 40hr a week plus overtime... and my "adjusted Earnings" for 2002 was just over $14,000.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 09:31pm

LadyTevar wrote:
Durran Korr wrote:The $0-24,000 figure is WAY too inclusive, I think, that would put something like 40% of this country below the poverty line.
it's called "Working Class Poor"

I've got a Government job, working 40hr a week plus overtime... and my "adjusted Earnings" for 2002 was just over $14,000.

How in the heck do you survive?

Darth Yoshi · Post by **Darth Yoshi** » 2003-05-29 10:49pm

I think she rooms with Nitram. Or she's very very very frugal.

I define rich as being able to bank my assets and live comfortably off the interest for the rest of my life, even after taxes.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-05-29 11:29pm

Darth Yoshi wrote:I think she rooms with Nitram. Or she's very very very frugal.

I define rich as being able to bank my assets and live comfortably off the interest for the rest of my life, even after taxes.

This is also known as critical mass. When you reach a point where you can live an acceptable life style without touching the principle of your investments.

RedImperator · Post by **RedImperator** » 2003-05-30 03:51am

Rich would be when you can do anything any reasonable person would care to do without worrying about how much it costs. Taking a vacation to Hawaii or buying a new Lexus would be reasonable; buying a Hawaiian island or a new Gulfstream G4 would not.

Obviously, this is a fat 21st century American's version of rich. A Ghanan (or 19th century American) definition of "rich" would probably be, "All your children have better than 50-50 odds of living to adulthood".

Post by **weemadando** » 2003-05-30 03:58am

Even with a job I'm under $6000 a year.

From that I pay rent, run a car, pay bills and eat. Its not a nice existance but I can deal with it.

Peregrin Toker · Post by **Peregrin Toker** » 2003-05-30 04:07am

Andrew J. wrote:When I can throw away SUVs and buy new ones every day, then I'm rich.

Then you're probably too rich.

RedImperator wrote:Obviously, this is a fat 21st century American's version of rich. A Ghanan (or 19th century American) definition of "rich" would probably be, "All your children have better than 50-50 odds of living to adulthood".

This is the problem with making laws targeting "the rich." How do you define "the rich"?? In the Soviet Union, for example, a family could be deemed "bourgeoisie" if they owned 2 cows too many.