Why do people who make 500k + not "feel" rich?

[Anonymous]

It's strange. We make $145k currently, with two kids in elementary, currently on one salary. I feel rich, even though our particular situation is not extremely stable -- we have lots of savings but the job is ending soon so we're both looking. I think it's just that I'm an optimist, and I'm extremely grateful for what we've worked so hard to earn. Growing up, money was tight, but we never wanted for anything. Why don't you really rich people try to shift your mindset? You're never going to catch up. Make peace with that.

[Anonymous]

Why do people who make 500k + not "feel" rich?

Because some people completely lack perspective and think that because they’re not living like the very richest in the world, they’re somehow only “upper middle class.” It’s ridiculous. Rich doesn’t mean richest. The word applies to more than just Jeff Bezos.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Again, if you make $500K, it seems very easy to judge that person, without knowing a single detail about that person. What about a parent whom earns $500K, but, spends like $200K a year on a very sick child? Is that person materialistic???? Because, according to one poster, that is what you are. INSANE!!!! That same person could be living paycheck to paycheck. Do you think that person 'feels rich'???

If you are spending $200k on a very sick child, I am sorry to hear that. But you still have $300k a year for other expenses.

The median income in the US is around 60k. The median income in this area in 2017 was around 82k. Your leftover income would still be more than 3x that. You are rich. You are uber rich. If your friends make $1m a year, guess what, you are still rich.

I will repeat it: if you make $500K, you start off by giving a lot of it to the gov't in the form of taxes. About $175K. And, if you have medical expenses of $200K, you have about $125K left to house yourself, eat, insure yourself, save, etc etc. That is NOT rich. Very far from it.

What medical insurance has an out-of-pocket annual limit anywhere near 200k (and at least since Obamacare is in place even preexisting conditions are insurable)? This is not a reasonable example on which to talk about a more general issue. And if you had 200k in medical expenses that would be deductible and you wouldn't owe 175k in taxes.

Most people aren't spending $200K plus in medical care and $125 is plenty for the rest.

[Anonymous]

Anonymous wrote:It's strange. We make $145k currently, with two kids in elementary, currently on one salary. I feel rich, even though our particular situation is not extremely stable -- we have lots of savings but the job is ending soon so we're both looking. I think it's just that I'm an optimist, and I'm extremely grateful for what we've worked so hard to earn. Growing up, money was tight, but we never wanted for anything. Why don't you really rich people try to shift your mindset? You're never going to catch up. Make peace with that.

Duh. You don’t have to pay full pay college or for childcare! If you did, you’d use the entirety of another $100k. You’e a moron for not realizing this.

[Anonymous]

A lot of it is lifestyle. We recently went from making $300-$400k to now making nearly $700k. The increase was so drastic it took us a while to realize how much more it was (we never actually tallied all the compensation- at first we thought it had just gone up to mid-500s.

But we made a conscious effort not to upgrade our lifestyle. We don't plan to move, to get new cars, send kids to private school, etc. We now go to our favorite restaurant once a week instead of once a month, but I still chicken out on ordering the steak or fish and instead get a hamburger or appetizer salad.

We feel rich. Dirty, stinky, filthy rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's strange. We make $145k currently, with two kids in elementary, currently on one salary. I feel rich, even though our particular situation is not extremely stable -- we have lots of savings but the job is ending soon so we're both looking. I think it's just that I'm an optimist, and I'm extremely grateful for what we've worked so hard to earn. Growing up, money was tight, but we never wanted for anything. Why don't you really rich people try to shift your mindset? You're never going to catch up. Make peace with that.

Duh. You don’t have to pay full pay college or for childcare! If you did, you’d use the entirety of another $100k. You’e a moron for not realizing this.

NP. Do you really get FA for college on that income? I mean I hope so. But somehow I doubt it.

[Anonymous]

Anonymous wrote:

Why do people who make 500k + not "feel" rich?

Because some people completely lack perspective and think that because they’re not living like the very richest in the world, they’re somehow only “upper middle class.” It’s ridiculous. Rich doesn’t mean richest. The word applies to more than just Jeff Bezos.

This. Exactly this.

[Anonymous]

I know so many who overextended themselves.

$1.5 mil house
3-5 big vacations each year
Multiple $40K+ cars
Multiple kids in private school
But the latest hot gadget as soon as it’s released
Designer everything

[Anonymous]

Anonymous wrote:Because 85% of my pay is spent on taxes, savings, childcare, mortgage and education.

One day I’ll be rich when the kids go off to college. Until then most of my money is going to the future full pay college, childcare required to keep my high paying job and savings.

Your 15% that isn’t going to those things is my family’s take home pay after taxes, and insurance. How is that not rich?

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's strange. We make $145k currently, with two kids in elementary, currently on one salary. I feel rich, even though our particular situation is not extremely stable -- we have lots of savings but the job is ending soon so we're both looking. I think it's just that I'm an optimist, and I'm extremely grateful for what we've worked so hard to earn. Growing up, money was tight, but we never wanted for anything. Why don't you really rich people try to shift your mindset? You're never going to catch up. Make peace with that.

Duh. You don’t have to pay full pay college or for childcare! If you did, you’d use the entirety of another $100k. You’e a moron for not realizing this.

I don’t think people who make $145,000 get significant discounts on college tuition.

[Anonymous]

In my case, we spend almost $75k per year on specialists and therapists for two SN kids. A “luxury” compared to many in the same situation, for sure. But it does not help us ‘feel‘ rich in the way you are thinking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's strange. We make $145k currently, with two kids in elementary, currently on one salary. I feel rich, even though our particular situation is not extremely stable -- we have lots of savings but the job is ending soon so we're both looking. I think it's just that I'm an optimist, and I'm extremely grateful for what we've worked so hard to earn. Growing up, money was tight, but we never wanted for anything. Why don't you really rich people try to shift your mindset? You're never going to catch up. Make peace with that.

Duh. You don’t have to pay full pay college or for childcare! If you did, you’d use the entirety of another $100k. You’e a moron for not realizing this.

If you make $500K you should be able to cashflow college, or at least a portion of it. Or you could do what the $145K parent almost certainly will do which is to instruct her kid to take cost into account when choosing a college.

So, no you don't have to save enough to full pay college.

[Anonymous]

Anonymous wrote:A lot of it is lifestyle. We recently went from making $300-$400k to now making nearly $700k. The increase was so drastic it took us a while to realize how much more it was (we never actually tallied all the compensation- at first we thought it had just gone up to mid-500s.

But we made a conscious effort not to upgrade our lifestyle. We don't plan to move, to get new cars, send kids to private school, etc. We now go to our favorite restaurant once a week instead of once a month, but I still chicken out on ordering the steak or fish and instead get a hamburger or appetizer salad.

We feel rich. Dirty, stinky, filthy rich.

300 to 400k each would be rich. 300-400k HHI is middle class on DCUM

[Anonymous]

300 to 400k each would be rich. 300-400k HHI is middle class on DCUM

I think this is a troll.

[Anonymous]

Anonymous wrote:

300 to 400k each would be rich. 300-400k HHI is middle class on DCUM

I think this is a troll.

Not to hard for a person to be at 175k to 200k. You can be sitting in a cube and do it with bonus. Even 325k one person not hard. Getting 400k and above usually SVPs, Big 4 Partners, Lawyers, Doctors. And often they Marry similar so we are taking 800k to 1.5 million income.