Why don't rich people realize that they are rich?

[Anonymous]

Anonymous wrote:I make around $150K and my husband around 70K so that puts us at almost $250k. We have one -- one -- car and a house that has 1300 square feet. I'm not complaining about our lifestyle and wouldn't dream of comparing myself to people who are struggling. But rich? C'mon... Not with the cost of living in this city.

I still consider you rich. I have one car and a small house on $60K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know it depends on your point of view but I really don't think of a 250k income in this area as rich. I think maybe a million is rich, maybe even 500k. 250k is absolutely well off but not rich by any means.

If people are capable of living on $50k in this area, then $250K is rich. What do you consider your nanny, or hairdresser, or mechanic to be?

There are many lines you can draw between working poor (nanny maybe), lower-middle class (mechanic, most likely) and rich (someone with a private jet). The hairdresser could probably be anywhere on the continuum depending on his clientelle.

I'm really playing devil's advocate here. At a little over $100k, we're "middle income" and live pretty humbly by comparison to our neighbors who are mostly upper-middle class. I have also known people who have donated enough money to universities and museums to have buildings named after them. Consider CEOs who get multi-million dollar benefits packages, or movie stars. It's a completely different story.

[Anonymous]

$250K in this area is comfortable, but not rich. It is not poor and some luxuries can be taken but -unless you're living off credit- it is not "rich." I'm not complaining (we make about this much). But, we are not jetting off on month long vacations, we have old cars (10 years with no power anything on one), have one modest home and don't have any nanny, much less a high-priced one. She is in a regular, neighborhood day care and will go to public school.

You can call me rich if you want, but you'd be wrong. We have cushion for emergencies, job loss, money to dedicate to retirement and college. To me, that isn't rich.

[Anonymous]

Everyone, no matter what your income, should really place greater emphasis on the domicile in question when discussing this topic. So 14:07 -- where, exactly, do you "have" a house on a $60K annual income?

I personally have lived in Aiken, SC and Grand Island, Nebr. on approximately $28K a year. I lived pretty well, too, because my rent was $200 a month and a meal out cost $5.50. I could totally imagine "having" a house and a car there and making $60K a year. I can't imagine doing the same in Boston.

As an aside, I've noticed that a lot of people around metro DC act like they have cement in their pants and can't possibly move away to realize a lower cost of living. With the exception of parole and divorce decrees, nothing would be forcing any of these people from moving to get more for their realistic earning capability.

[Anonymous]

You have a cushion, you have a house, you have retirement money, you have health insurance, you can afford daycare and still save some. You are rich, but like I said, you don't even realize it.

[Anonymous]

I am the $60K poster. I rent a house in Falls Church.

[Anonymous]

Anonymous wrote:You have a cushion, you have a house, you have retirement money, you have health insurance, you can afford daycare and still save some. You are rich, but like I said, you don't even realize it.

The criteria you describe sound like middle class security to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know it depends on your point of view but I really don't think of a 250k income in this area as rich. I think maybe a million is rich, maybe even 500k. 250k is absolutely well off but not rich by any means.

If people are capable of living on $50k in this area, then $250K is rich. What do you consider your nanny, or hairdresser, or mechanic to be?

I don't have a nanny, hairdresser or mechanic. Nice try.

As I said, it depends on your perspective. If you are making 50k perhaps 250k looks "rich". But what if you are making 250k, does 500k or a million look "rich".

Simply being able to "live off" a low salary does not make a higher salary "rich". And pp, if 250k is "rich" to you as opposed to "well off", then what would you call someone making a million a year? It's all perspective and opinion.

[Anonymous]

If I were making 250K, I would consider myself rich, and everyone who makes more than that, I would consider rich as well. If I made 150K I'd consider myself rich. I could probably afford a house and have a cushion on that salary.

I didn't mean to imply that you had a nanny, mechanic, or hairdresser, but rather...if you are middle class, then what do people in the mentioned professions classify as?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know it depends on your point of view but I really don't think of a 250k income in this area as rich. I think maybe a million is rich, maybe even 500k. 250k is absolutely well off but not rich by any means.

If people are capable of living on $50k in this area, then $250K is rich. What do you consider your nanny, or hairdresser, or mechanic to be?

I don't have a nanny, hairdresser or mechanic. Nice try.

As I said, it depends on your perspective. If you are making 50k perhaps 250k looks "rich". But what if you are making 250k, does 500k or a million look "rich".

Simply being able to "live off" a low salary does not make a higher salary "rich". And pp, if 250k is "rich" to you as opposed to "well off", then what would you call someone making a million a year? It's all perspective and opinion.

I am in complete agreement with this poster, except that I have trouble believing she doesn't have a hairdresser and even a mechanic if she owns a car... Really? Not as your private servants, of course (that's the province of the ultra-rich), but as a standing occasional relationship I'd think you'd have some one you know. It isn't so relevant to the discussion, but since I'm avoiding my housework (which I do myself since, at $100k plus a little more, I'm not rich), I thought I'd point out that it seemed to me to be a funny thing to say!

[Anonymous]

Anonymous wrote:If I were making 250K, I would consider myself rich, and everyone who makes more than that, I would consider rich as well. If I made 150K I'd consider myself rich. I could probably afford a house and have a cushion on that salary.

I didn't mean to imply that you had a nanny, mechanic, or hairdresser, but rather...if you are middle class, then what do people in the mentioned professions classify as?

Again, house + cushion = middle class.

[Anonymous]

Anonymous wrote:If I were making 250K, I would consider myself rich, and everyone who makes more than that, I would consider rich as well. If I made 150K I'd consider myself rich. I could probably afford a house and have a cushion on that salary.

I didn't mean to imply that you had a nanny, mechanic, or hairdresser, but rather...if you are middle class, then what do people in the mentioned professions classify as?

Some hairdressers and mechanics earn a lot of money. A BMW mechanic makes easily 90k per the want employment advertisement I just perused. 90k is pretty good money if you ask me. A hair dresser in a fancy salon, just think of the tips they are pulling in. And a nanny in another post was apparently making $1000 a week. 52k is not rich but it's a nice income.

You need more than a nice income to buy a house. What about savings, credit, income to debt ratio? And with a nice house comes a nice mortgage, home upkeep, insurance, etc. It all costs money and lessens your cushion.

[Anonymous]

Yes, non-college degree workers can earn a nice living. I know an elevator repair tech and IT people who make 6 figures.

[Anonymous]

Anonymous wrote:Yes, non-college degree workers can earn a nice living. I know an elevator repair tech and IT people who make 6 figures.

IT people don't have college degrees?

[Anonymous]

Do you consider the nanny, mechanic or hairdresser or other 50K earners in the same middle class as 250K earners? I certainly don't. They all earn significantly less but are part of the middle class that lives in the DC area. That's why it is hard to understand why people who make more than double that, consider themselves middle class. You are not in the same class as them! You are well off, which in our eyes, is another word for rich. You don't have to own a jet to be rich.