Ok DCUrban Mums. What is Rich

[Anonymous]

My first thought: if you have to talk about earned income, you're not rich. Rich is defined by the streams of money that come in even if you never get out of bad, and that will continue after your death.

I am not rich. Rich people own private jets and mega yachts, or if they don't, they easily could without any significant hit to their passive income.

We live in a lower-COL area compared to most on this board. Partly because of this, we have been able to convert our approx. $225k income into $2.7M invested and a mortgage-free $600k house. We are 40.

That's certainly not rich, and nothing about our lifestyle would suggest otherwise. On the other hand, compared to most people in our neighborhood and circles and with similar earnings, the fact that we typically have investment earnings that exceed our annual living expenses puts us in a stronger financial position.

I'd say that we're quickly becoming financially independent; perhaps we are already, and that's good enough for me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You exit middle class at 400k

what are you considered at this HHI?

Yes, but this isn’t rich. We’ll surpass this HHI this year, yet our net worth is under $1M. Our retirement and kids’ college funds are woefully underfunded. We’re in our late 40s, so we have some time to catch up but not so much time that we’ll retire rich. It would have been a game-changer if we made this income 10 years ago, but we didn’t.

[Anonymous]

Anonymous wrote:You exit middle class at 400k

I sort of agree with this. I consider two feds making a HHI of $350k and paying childcare middle class. I consider $400k single earner with a SAHP UMC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You exit middle class at 400k

what are you considered at this HHI?

Yes, but this isn’t rich. We’ll surpass this HHI this year, yet our net worth is under $1M. Our retirement and kids’ college funds are woefully underfunded. We’re in our late 40s, so we have some time to catch up but not so much time that we’ll retire rich. It would have been a game-changer if we made this income 10 years ago, but we didn’t.

Just curious, what are your jobs, and what were you making 10 or 15 years ago?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You exit middle class at 400k

what are you considered at this HHI?

Yes, but this isn’t rich. We’ll surpass this HHI this year, yet our net worth is under $1M. Our retirement and kids’ college funds are woefully underfunded. We’re in our late 40s, so we have some time to catch up but not so much time that we’ll retire rich. It would have been a game-changer if we made this income 10 years ago, but we didn’t.

Entry level rich

[Anonymous]

Anonymous wrote:

Anonymous wrote:We feel upper middle class in Northern VA but would be considered rich. Our lifestyle would not be viewed as rich and our friends do not think we are rich. I look at my brother who is worth $35 - 50 million as rich.

We (early 50s) make $340K annually on W2 income, but our net worth is ~ $ 9 million. But we have always lived below our means, no family money involved except my doctor spouse had no student loans. We have no debt, 10% of our net worth is in our kids 529 plans. Our home in NoVA was purchased for less than a million, but is about $1.5 now, but less than 3,500 sq ft. About $2.5 M in retirement accounts. I made a lot of money early in my career in big law, but stepped back some years ago to work as a fed with much less salary. Our kids attend public schools. We don't have a 2nd home and drive Toyotas and Hondas

We don't budget, but we are debt free and don't spend frivolusly, and most expenses outside of living expenses are kid activity related. We have been lucky with real estate before prices jumped, and we invest our money ourselves in passive index funds.

We have many friends who are heads of businesses, attorneys partners, specialist doctors, finance, etc who make much more than we do and live more lavishly, and probably worth much more than we are worth.

So objectively we are wealthy, but we live a very modest upper middle class lifestyle compared with our peers and neighbors.

What drives you to be so class obsessed? Did you grow up feeling inadequate? Do you have higher achieving siblings that have caused you to be insecure?

Trying to understand where all this insecurity comes from.

NP here. I am not sure I see insecurity here. What are you seeing that I am missing?

[Anonymous]

I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

[Anonymous]

Anonymous wrote:I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

It’s all relative. You are their rich 🤑.

[Anonymous]

Why didn’t op look at the literally hundreds of other recent threads about this?

The answer is that everyone has a slightly different definition. This will never be resolved. That is why there are so many threads about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We feel upper middle class in Northern VA but would be considered rich. Our lifestyle would not be viewed as rich and our friends do not think we are rich. I look at my brother who is worth $35 - 50 million as rich.

We (early 50s) make $340K annually on W2 income, but our net worth is ~ $ 9 million. But we have always lived below our means, no family money involved except my doctor spouse had no student loans. We have no debt, 10% of our net worth is in our kids 529 plans. Our home in NoVA was purchased for less than a million, but is about $1.5 now, but less than 3,500 sq ft. About $2.5 M in retirement accounts. I made a lot of money early in my career in big law, but stepped back some years ago to work as a fed with much less salary. Our kids attend public schools. We don't have a 2nd home and drive Toyotas and Hondas

We don't budget, but we are debt free and don't spend frivolusly, and most expenses outside of living expenses are kid activity related. We have been lucky with real estate before prices jumped, and we invest our money ourselves in passive index funds.

We have many friends who are heads of businesses, attorneys partners, specialist doctors, finance, etc who make much more than we do and live more lavishly, and probably worth much more than we are worth.

So objectively we are wealthy, but we live a very modest upper middle class lifestyle compared with our peers and neighbors.

What drives you to be so class obsessed? Did you grow up feeling inadequate? Do you have higher achieving siblings that have caused you to be insecure?

Trying to understand where all this insecurity comes from.

NP here. I am not sure I see insecurity here. What are you seeing that I am missing?

That IS family money!

[Anonymous]

Anonymous wrote:I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

Exactly this. Especially looking at the yachts, and having an idea how much it costs to staff, operate, and maintain them. The hired captain and his wife are making $400k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

Exactly this. Especially looking at the yachts, and having an idea how much it costs to staff, operate, and maintain them. The hired captain and his wife are making $400k.

This is like saying no one is rich except Jeff Bezos or Elon Musk. If you don’t have 100 billion, you are not rich!

[Anonymous]

Anonymous wrote:This post will get you no where. But I'll share what a rich person once told me -- if you have to work for your money, you're not truly rich.
My takeaway: it's all in the eye of the beholder.

This is always my definition.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

Exactly this. Especially looking at the yachts, and having an idea how much it costs to staff, operate, and maintain them. The hired captain and his wife are making $400k.

This is like saying no one is rich except Jeff Bezos or Elon Musk. If you don’t have 100 billion, you are not rich!

Good try but no. It IS like saying that if you don't have 10 million + liquid in this country, you're not rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand all these people who are like "you make 400k you are rich, stfu"

What do you think when you go to really upscale places like Nantucket or Aspen and see how truly rich people live? When we were in Bar Harbor over the summer, I was amazed by all the big yachts we saw in the harbor or anchored off shore. Plus all the huge vacation homes that people own. These people are the rich in this country!

Exactly this. Especially looking at the yachts, and having an idea how much it costs to staff, operate, and maintain them. The hired captain and his wife are making $400k.

This is like saying no one is rich except Jeff Bezos or Elon Musk. If you don’t have 100 billion, you are not rich!

Good try but no. It IS like saying that if you don't have 10 million + liquid in this country, you're not rich.

Why 10 million? That’s so arbitrary, and just your opinion.

These threads are so dumb I can’t even.