So we all know the government considers you rich at 250k and we all know that depending on the demographic this may not hold true. So my question is how much of an yearly salary do YOU consider rich or wealthy?
*Ill go first. I would say that if you make over 300k as a single person and 500k as a household then you are wealthy regardless of where you live. I believe this amount affords you the 2 luxury cars up to a million dollar nice home and being able to spend,invest,and save pretty freely.
Agree or disagree?
if you make over 200k a year are your Rich?
While there is no official income level or net worth that makes you officially wealthy or rich - our users shared their thoughts on this topic:
Rich is easy to attain. Wealthy is not. There's a lot of subjectivity involved, but I'd simply say rich is making a large salary (mid to high six figures) while wealthy is being absolutely unconcerned with work because of what you're already worth.
Your not wealthy when you're working for your money. You're wealthy when your money is working for you.
Personal Net Worth and Being Rich
User @alexpasch shared that you can consider wealth based on the net worth of an individual.
Your salary (income) is only one of three factors that make you wealthy. Income * savings rate * growth rate of investments - debt = net worth
User @Situation, an investment banking analyst, shared that the label of wealthy or rich are based on where you live and your lifestyle.
This is a very subjective issue, and much of it is contingent on location.
My good friend's dad makes around 200k-300k per/year (depends on the economy and he works 8-4pm from home). They own a porshe turbo, lexus and beemer (all relatively new). Their house has an elevator, around 5,000 sq feet on the ocean with a dock, jet ski, and offshore fishing boat. They wear expensive clothing/accessories, vacation modestly, have a condo up north and he just retired (mid to late 50's).
An older friend of mine is an investment banker in NYC at a BB. Makes around 700k-1m. He lives in a 2000 sq foot apartment in meat packing. Has a used Mercedes in storage that he never has time to drive. He works long hours, always traveling, and rarely is afforded the time to travel to his condo in FL. He doesn't have time to have a healthy relationship either and is still single at 45. In summary, his lifestyle doesn't even compare to people I know in Florida that make 150k.
No matter your wealth, you need sufficient time to enjoy it and an environment that yields high utility. My friend from FL earns 1/3 of what the investment banker does, but has time to invest in real estate and live a much better lifestyle.
Read More About Wealth on WSO
- Better To Have Been Rich And Lost It, Or Never Been Rich At All?
- Are The Rich Getting Richer?
- Do The Rich Work Harder?
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