Why rich people don't feel rich

[Anonymous]

At the risk of chiming in, we make about $600-$700K/year and are extremely extremely fortunate. There is almost nothing that we want, but cannot afford to buy (except for truly absurd things, like planes, helicopters, truly expensive houses, etc).

By almost every objective means we are very well off and by many rich.

However, I would not subjectively classify us as rich as I still worry at night that we don't have enough saved to live the life of luxury WITHOUT having work.

Certainly, we can live a very nice life while we are working (and we save/ invest a lot). And, certainly we can retire with a very comfortable life, but not an extravagant life.

I would like to be rich. I would like to retire young. I would like to provide everything my family could ever want. We've been incredibly fortunate and it is a real possibility for us. That said, we'd easily give that up for health and happiness if we had to make that choice (we are currently fortunate enough to enjoy both).

In case you were curious, we regularly discuss how much easier life was when we made about $125K and lived in a much smaller place. We never needed anything beyond that. But if you had the opportunity to be truly rich, could you really pass it up.

We have a HHI of nearly $700K and net worth of a little over $5M. We are both in our low 30s and have jobs we love.

[Anonymous]

Anonymous wrote:At the risk of chiming in, we make about $600-$700K/year and are extremely extremely fortunate. There is almost nothing that we want, but cannot afford to buy (except for truly absurd things, like planes, helicopters, truly expensive houses, etc).

By almost every objective means we are very well off and by many rich.

However, I would not subjectively classify us as rich as I still worry at night that we don't have enough saved to live the life of luxury WITHOUT having work.

Certainly, we can live a very nice life while we are working (and we save/ invest a lot). And, certainly we can retire with a very comfortable life, but not an extravagant life.

I would like to be rich. I would like to retire young. I would like to provide everything my family could ever want. We've been incredibly fortunate and it is a real possibility for us. That said, we'd easily give that up for health and happiness if we had to make that choice (we are currently fortunate enough to enjoy both).

In case you were curious, we regularly discuss how much easier life was when we made about $125K and lived in a much smaller place. We never needed anything beyond that. But if you had the opportunity to be truly rich, could you really pass it up.

We have a HHI of nearly $700K and net worth of a little over $5M. We are both in our low 30s and have jobs we love.

HOLY CRAP! What do you do in your early 30s to bring in that kind of money AND have that much worth? and will you adopt us?

[Anonymous]

Ditto the HOLY CRAP poster. What do you do to have made that kind of money in your early 30s?!?!

[Anonymous]

Two Big law lawyers would probably make that much 7-8 years in, and certainly there are people who make more than lawyers.

The real "holy crap" is the way you can redefine "rich" to mean "being able to retire at 35 and still spend hundreds of thousands of dollars a year". If that's the standard no wonder the rich don't feel rich...

[Anonymous]

Anonymous wrote:Two Big law lawyers would probably make that much 7-8 years in, and certainly there are people who make more than lawyers.

The real "holy crap" is the way you can redefine "rich" to mean "being able to retire at 35 and still spend hundreds of thousands of dollars a year". If that's the standard no wonder the rich don't feel rich...

That's the thing. $100 is a lot of money if you want to buy a pair of socks. $100 is very little if you want to buy a tv. $100 is a months' salary is some places. It's a month's groceries here.

It takes a huge jump to get to the point where you are numbers so high that there's no dispute, even among the rich, that you are indeed, rich. But I think most folks making 500-700K will agree that they are there, at least here in DC (maybe not in NYC, Tokyo or London) But that doesn't mean they don't want to be RICHER.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Two Big law lawyers would probably make that much 7-8 years in, and certainly there are people who make more than lawyers.

The real "holy crap" is the way you can redefine "rich" to mean "being able to retire at 35 and still spend hundreds of thousands of dollars a year". If that's the standard no wonder the rich don't feel rich...

That's the thing. $100 is a lot of money if you want to buy a pair of socks. $100 is very little if you want to buy a tv. $100 is a months' salary is some places. It's a month's groceries here.

It takes a huge jump to get to the point where you are numbers so high that there's no dispute, even among the rich, that you are indeed, rich. But I think most folks making 500-700K will agree that they are there, at least here in DC (maybe not in NYC, Tokyo or London) But that doesn't mean they don't want to be RICHER.

Very funny you say that. I want to move to NYC badly, but worry that we don't have enough saved to afford a nice lifestyle (and as crazy as it sounds, by nice I mean a $3M condo in a great neighborhood, not a $10M+ place overlooking that park). Given several years at this income level in DC, I would concur that we could probably retire by 40.

I own a business in DC, which is where 80% of our income comes from. And of course if we move, it seems unlikely that we would make a similar salary (although I could start another business).

And, we are both attorneys. Neither of us practices in a traditional sense.

[Anonymous]

Anonymous wrote:If you can afford a decent home, food, education, retirement and college savings, clothing, transportation, and activties for your family, then you are doing pretty well - maybe even rich. After all, anything else is a luxury.

For many in this country and area, activities and college savings also fall under "luxury."

[Anonymous]

Anonymous wrote:What is money if you are sick and ill
What is money if you are surrounded by bratty children and a miserable spouse
What is money if you constantly worry about money?


The sleap of a labourer is sweet.

So true...I love it! I just think these people are so greedy!

[Anonymous]

I read a post the other day about this - I like her take on it:
http://www.comingtogrips.net/2010/06/coming-to-grips-with-being-broke.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is money if you are sick and ill
What is money if you are surrounded by bratty children and a miserable spouse
What is money if you constantly worry about money?


The sleap of a labourer is sweet.

So true...I love it! I just think these people are so greedy!

If you are sick and ill, money is getting the best doctors, second opinions, your choice of cutting edge treatments and medications that insurance may not cover. If you are sick and ill, money is being able to pay for a caregiver to help your spouse or grown children. It is a nanny to help your children when you are at the doctors or to take them to the park and otherwise help them have a more typical childhood when you aren't able to do those things. It is paying for someone to clean your house when you cannot.

When you are surrounded by bratty children and a miserable spouse, money is the psychologist who helps you parent better and have a better marriage. Or money is the lawyer who helps you move on. Money is the ability to move on.

Money is something you worry about whether you have none or if you are millions. Everyone worries about money: either how to have enough or how to manage and keep what you have.

It is far better to have a miserable life with money than to have a miserable life without enough.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is money if you are sick and ill
What is money if you are surrounded by bratty children and a miserable spouse
What is money if you constantly worry about money?


The sleap of a labourer is sweet.

So true...I love it! I just think these people are so greedy!

How many years of post high education do you have, and how many years of working 70+ hours a week?