I have a problem with the definition of Rich

[Anonymous]

I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

[Anonymous]

We are in the same spot, but I feel very wealthy in many ways. I grew up poor in this area. My family members who are still here have at best HHI of $75,000. I'd take my $200k any day. It's all relative. My family is not saving anything for retirement, but I am. My family cannot afford any private schools, but I can. My family cannot afford any international vacations, but I can. I'm not wealthy like Donald Trump, but I am very grateful for the way I get to live.

[jsteele]

Anonymous wrote:I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

I can't explain your feelings. But, much of the focus on the $250K number is because that is the point at which Obama wants to increase the marginal tax rate. There are a couple of things to keep in mind about this:

1) as I said, the tax rate is marginal and will only apply to taxable income above $250,000;
2) the proposed increase is 3%

You probably have $10-$15 thousand in deductions. So, before the tax increase even hits you, you would have to be making in the neighborhood of $265,000. Then, the tax would be an extra $300 per $10,000 which doesn't seem excessive. If your income grew to $300,000 your additional tax burden would be $1050. If your income was $400,000 you would see an additional $4050 tax. Still hardly noticeable. So, when Obama talks about the rich paying more, he means those who are really rich. Because those who are like you and "don't feel rich" aren't rich and won't be paying very much more -- if anything at all.

[Anonymous]

Our HHI was around 250K for a few years. Yes, we were rich. We saved a bunch and spent a bunch, and slept soundly. Our HHI is 100K now. Much less saving, spending and sleeping.

[Anonymous]

My husband and I have one child and live a very comfortable life within DC limits on $160K. Do we consider ourselves rich? Not really. But we also don't bitch about our lot in life because we know that we make 3x the national HHI average and 2x the average for the DC metro area. YOU make 3x plus some what the average family here does. So, I'm not going to attempt to analysze your feelings either, but the backlash people are getting on this forum is not envy, it is moral outrage at the thought that the most fortunate among us feel comfortable complaining when they clearly have no idea how "average" people live in this country. HINT: Not anywhere near as well as you.

[Anonymous]

OP,

Why don't you think you feel rich?
You're in the top 5%. Maybe top 3%.
Is your mortgage too high?
Do you have massive student loan debt?
Do you spent lots on eating out, cars, leisure travel, clothes?
Where can you cut back?

[Anonymous]

I have a problem with the stuff you waste your money on.

Our HHI is just under $100k, and we live pretty darn well. Anyone who's making more than twice what we are and still complaining is doing it wrong and deserves no sympathy.

[Anonymous]

Anonymous wrote:I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

Perhaps because your sense of wealth is overpowered by your sense of entitlement?

[Anonymous]

"Why don't I feel rich? "

My guesses - which fundamentally boil down to the fact that $250K in the DC area is probably equivalent to half of that in non-metro areas.
a) You did not buy a house before the market run-up or else you did but overspent on housing after cashing that out.
b) You have huge student loans from investing in the education necessary to earn that amt of money.

finally, "rich" is relative. Relative to most americans you are rich but then again most americans are rich relative to most Mexicans. In most people's minds "rich" equals a big & nice house, solid savings and not really needing to worry about money that much. I think many people in the DC area make a good amt of money but also are still grinding it out - they couldn't quit and live off their money. anway, this has been debated a gazillion time son DCUM...

[Anonymous]

Anonymous wrote:I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

Maybe you don't save very much.

[Anonymous]

Anonymous wrote:I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

Well, how much do your friends earn? If they make $500K, you're going to feel poor. If they make $125K, you're going to feel rich.

[Anonymous]

Oh please. Cry me a river.

[Anonymous]

Anonymous wrote:"Why don't I feel rich? "

My guesses - which fundamentally boil down to the fact that $250K in the DC area is probably equivalent to half of that in non-metro areas.
a) You did not buy a house before the market run-up or else you did but overspent on housing after cashing that out.
b) You have huge student loans from investing in the education necessary to earn that amt of money.

finally, "rich" is relative. Relative to most americans you are rich but then again most americans are rich relative to most Mexicans. In most people's minds "rich" equals a big & nice house, solid savings and not really needing to worry about money that much. I think many people in the DC area make a good amt of money but also are still grinding it out - they couldn't quit and live off their money. anway, this has been debated a gazillion time son DCUM...

I'm not the OP, but similar circumstances. $250K HHI, 2 WOH parents, no student loans. Able to consider private school for our DC if we want. Putting away lots in savings and retirement. 2 cars, both almost 10yrs old. Take a real vacation about once every two years. 200sq ft house and a $600K mortgage. Wouldn't recognize a Tory Birch shoe or designer jean if they were right in front of me.

I think PP's comment speaks to my own feelings about why I'm not "rich". Somehow I feel as though rich people have nannies, drive expensive late model cars, have 3000+ sq ft $1M+ houses, take vacations once or twice a year. And on and on and on with those types of indicators. Bad example, but since she's in the news right now, I kind of did a double take when I realized Jill Kelley and I are the same age. Fabulous house, hair, clothes, body. SAHM. Lavish parties, multiple homes, mercedes, on the pages of society magazine in town. At one level that's my reaction - she's rich, not me.

I'm not complaining at all and in fact feel very blessed. And know that on paper we are in that top 3-5%, but in reality I don't view my life as that of a rich person because "rich people" have different lives than I do.

[Anonymous]

jsteele wrote:

Anonymous wrote:I keep hearing that I am on the verge of being "rich" because combined, my school teacher husband and I are on the verge of making $250K. Why don't I feel rich?

I can't explain your feelings. But, much of the focus on the $250K number is because that is the point at which Obama wants to increase the marginal tax rate. There are a couple of things to keep in mind about this:

1) as I said, the tax rate is marginal and will only apply to taxable income above $250,000;
2) the proposed increase is 3%

You probably have $10-$15 thousand in deductions. So, before the tax increase even hits you, you would have to be making in the neighborhood of $265,000. Then, the tax would be an extra $300 per $10,000 which doesn't seem excessive. If your income grew to $300,000 your additional tax burden would be $1050. If your income was $400,000 you would see an additional $4050 tax. Still hardly noticeable. So, when Obama talks about the rich paying more, he means those who are really rich. Because those who are like you and "don't feel rich" aren't rich and won't be paying very much more -- if anything at all.

Thanks - this is a great explanation that helps put this "rich tax" into perspective.

[Anonymous]

I swear, I just don't get this.

I am in grad school and dh makes 60k. We live in a moderate income 1 bedroom apartment in a luxury building. We save at least 1k a month in addition to his retirement plan and some money in an IRA. We have a one year old dd. I don't feel poor, I actually don't feel any financial stress at all. We mostly cook our own food and I just don't buy things I can't afford. Soon we'll have more money, and I don't think I'll even change much about our lifestyle other than move to a slightly bigger place. I see my friends with more money and I don't really feel "oh I wish I had all that stuff" because I don't really see that they have anything that I want. I have a good dh and a healthy dd and I live in a clean, attractive home. My parents are in the top 1% and they're very much the same.