How Rich is Rich?

[Anonymous]

*It depends on your disposable income*

What you earn vs what you spend it on.
If you are a high earner but spend it all on your elderly parents care or gambling or whatever, then you can't be rich. If you don't earn quite that much, but don't have too many costs, then you could be rich.

If you find yourself with retirement taken care of, enough disposable income to cash flow your children's college costs, afford international vacations every year, along with outsourcing daily chores and living a nice life... then you're rich.

Total net worth is considered too. Compared to most people, you are rich in assets. But compared to people on DCUM... eh. Upper middle, maybe.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You are not rich. It’s all relative though. A $1.8 million house is middle class in my area.

Another humblebrag, lol

LOL, 1.8 will not even come close to buying a burnt out, condemned tear down n a tiny lot where I live.

It’s less relevant whether you are rich, UMC or mc. What matters economically is whether you live within your means and have financial security. There’s a spectrum of behaviors out there. MIL has several million in invested yet liquid assets, owns 8 different properties which are paid off, low tax basis and rents out. She lives very frugally to the point where you have to be careful not to eat stuff she brings over. She will leave a mayonnaise based salad with chicken in her car for hours during a 90 degree day and overnight yet want us to eat it the next day. She only buys and wears second hand thrift store clothes because ‘Chicos has gone insane with price increases, do they think they are Halston?’ Contrast this with one of her siblings who closed his medical practice 30 years ago and has been into investing ever since. He is always spending and looking for several hundred thousand from his extended family to ‘invest’.

[Anonymous]

Anonymous wrote:I am jaded because we are not rich but work with and live near rich people. I define "rich" as at least $20m in net worth—enough for a ski or beach house and a net jets account.

I think everyone would define a ski house as rich especially if you never rent it out

[Anonymous]

Op is rich in savings, rich in security and rich in family. It's OK to exhale and enjoy it for a moment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have no regular savings you can access (like a HYSA)?

I do have a million or so in a brokerage account, but that I don't touch. And like 250Ks in CDs.

But cash in Bank I only have like 300K but that is in case I get laid off and need funds. I also have a small rental property but rented year round. Just a small place, but once again illiquid I used rental income to pay bills. Cant sell that as need the income.

Free cash is maybe a few thousand tops. Meanwhile my neighbor who is actually rich they are both loaded, CEO and Dr. they pull in at least 1-2 million a year they are rich. I am straight up middle class based on income and spendable cash. When I had big job, we do a new kitchen, go to Turks and Caicos, buy a new car whenever. Did not even look at bank statement. But I no longer have that income. I am formerly rich like a Child Movie Star or laid off Investment Banker. I just don't have a cash stream. Even some of my cars are getting old. They look nice but they are cars I bought in 2011 and 2012.

I feel like BMC Hammer or Mike Tyson or Kim Bassenger. They all had big income streams then lost it all. Well they kept their mansion and luxury car and 401Ks but lost all the free cash. Thats me.

Dude shut up

[Anonymous]

Anonymous wrote:My daughter called out my wife on her talk about the “rich” people and her saying is “middle” class people.

I have an average job and my wife does not work. But I had a good job at one point and bought a big house with a big downpayment we still live in.

My daughters threw out, you literally live in house now worth 1.8 million. My friends think I am rich from my address. My wife is we are middle class. She then throws out well how do you afford house. My wife responds well we have a small mortgage as put down a lot back in 2017 when Dad has a higher salary.

A few weeks later my daughter fresh out of college I helped with her 401k sign up. I was encouraging her to do more. It will be worth a lot one day. She asks how much I have in my 401k I say well I have two million and mom has one million. She goes I thought you were middle class. I then explain that’s for retirement.

She then asks any other secret month. Well I say I still have $350,000 of pre IPO vested RSUs from prior company but that I also can’t sell and maybe 100k in younger sisters 529 but that I can’t sell either and Mom has a 100k cash balance pension. Year that’s it.

But I am still middle class based on income.

No sir. $5Mn is rich. You can’t hide that kind of money then cry poverty.

[Anonymous]

Anonymous wrote:I am jaded because we are not rich but work with and live near rich people. I define "rich" as at least $20m in net worth—enough for a ski or beach house and a net jets account.

If you “live near” rich people you are rich by the proximity not the entirety. That’s still rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have no regular savings you can access (like a HYSA)?

I do have a million or so in a brokerage account, but that I don't touch. And like 250Ks in CDs.

But cash in Bank I only have like 300K but that is in case I get laid off and need funds. I also have a small rental property but rented year round. Just a small place, but once again illiquid I used rental income to pay bills. Cant sell that as need the income.

Free cash is maybe a few thousand tops. Meanwhile my neighbor who is actually rich they are both loaded, CEO and Dr. they pull in at least 1-2 million a year they are rich. I am straight up middle class based on income and spendable cash. When I had big job, we do a new kitchen, go to Turks and Caicos, buy a new car whenever. Did not even look at bank statement. But I no longer have that income. I am formerly rich like a Child Movie Star or laid off Investment Banker. I just don't have a cash stream. Even some of my cars are getting old. They look nice but they are cars I bought in 2011 and 2012.

I feel like BMC Hammer or Mike Tyson or Kim Bassenger. They all had big income streams then lost it all. Well they kept their mansion and luxury car and 401Ks but lost all the free cash. Thats me.

It’s better to have rich and have lost than to not have rich at all

[Anonymous]

You are upper-middle class with that net worth.

[Anonymous]

Ultra-high net worth individuals are usually defined as those with $30M+ in net worth. That's probably "rich" by most definitions.

Very high net worth individuals a usually thought of as those whose net worth is between $5M and $30M. It's likely that the lower end of that range would be thought of by some as merely comfortable, while the upper end would be well-to-do. But consider that a high net worth person is usually defined as someone with $1M to $5M in net worth. Such an individual might not be considered "rich" if living in a high cost of living environment among high-earning neighbors. That same person is probably considered "rich" by people with incomes around the national average of around $60K.

[Anonymous]

1.8m barely buys a two bedroom apartment where I live. You’re rich by Kansas standards, not by SF or NYC standards

[Anonymous]

Yep, just rich enough to talk about the $, not rich enough to retire early or now~so sad!

[Anonymous]

5 is not rich. That is still well within the range of being able to completely squander your family wealth in a single generation. Tell your kids that you guys are not rich. 5 is nothing, and only 3 of it is in investments. 90k a year in investment income after taxes is not a luxurious lifestyle.

[Anonymous]

Anonymous wrote:Op is rich in savings, rich in security and rich in family. It's OK to exhale and enjoy it for a moment.

Not if you hate your job or cannot work full time any longer for whatever reason. Locked up wealth you can't leverage to pay bills, that doesn't produce income you can live on will not feel like wealth or provide the same lifestyle and freedom as wealth that generates income. Most people with equity in their expensive homes and fat 401Ks can have millions but they can't touch it until retirement, so they have to keep working.

[Anonymous]

You live in a 2 million dollar house and are asking this? Yes you are rich.