Earning 50K vs 500K vs 50 million

[Anonymous]

Same situation here. We're in the 500-600k range (depends on the year -- I own a business). I get asked to join other businesses all the time, and I turn them down. I really don't need to make $1mln/year, and it's unlikely those new opportunities would put me in the $50mln range.

We still have the $50k mentality since we're self-made. We needed new bedsheets and want to Macy's today because they were having a sale + there was a coupon in the paper.

[Anonymous]

Anonymous wrote:Does the person making $500K live more like the $50K person or the $50 million person?

I am at $400K and I actually feel like a whole lot more money wouldn't make such a big difference in my life. I can already afford anything I really want in life... Nice vacations, private school, nice house and car, etc. I enjoy all those things. If I had more $$$, I could step it up a notch but my life wouldn't be that much different. $5k vacation doesn't need to be $20K. $50K car doesn't need to be $200K. $1M house doesn't need to be $10M house. etc etc.

On another thread, one person argued that this is nowhere close to a $50 million lifestyle. While that might be true, I think I am much further away from the $50K person.

$50K people still live with fear and uncertainty. They must make compromises on a daily basis.

How much do you make and what do you think?

We are at 400K too. How can you afford nice vacations, private school, nice house and car? We net $218,000 a year after contributing to our 401(k) plans and paying our health and life insurance pre tax.

[Anonymous]

Anonymous wrote:I agree with OP. Our HHI is $300k. Nice home, late model cars, private school. No beach house, but nice vacations 2-3 times a year. We fly (not first class), stay in hotels... My brother makes closer to 50k. His cars are 10+ years old. Public school. The only vacations they drive and stay with family. They do not have health insurance (until ACA kicks in). No college savings for kids, no retirment savings for them. I know they haven't paid some medical bills because occasionally a collector will call me and ask for my brother (his wife and I have the same name). Worrying about medical care is a far stretch from not having my own yacht or plane. I don't worry about not having a yacht when I go to bed at night. I don't worry about paying the enormous heating bill due to the cold winter. These are things people on 50k worry about. Wondering if you saved enough for kids college or retirment is very far from this reality.

How do you afford nice home, late modeal cars and private school? How much money do you save each year?

[Anonymous]

I utterly agree with you, OP.
Btw, I wish I were in your boat. Can I ask what career you chose?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does the person making $500K live more like the $50K person or the $50 million person?

I am at $400K and I actually feel like a whole lot more money wouldn't make such a big difference in my life. I can already afford anything I really want in life... Nice vacations, private school, nice house and car, etc. I enjoy all those things. If I had more $$$, I could step it up a notch but my life wouldn't be that much different. $5k vacation doesn't need to be $20K. $50K car doesn't need to be $200K. $1M house doesn't need to be $10M house. etc etc.

On another thread, one person argued that this is nowhere close to a $50 million lifestyle. While that might be true, I think I am much further away from the $50K person.

$50K people still live with fear and uncertainty. They must make compromises on a daily basis.

How much do you make and what do you think?

We are at 400K too. How can you afford nice vacations, private school, nice house and car? We net $218,000 a year after contributing to our 401(k) plans and paying our health and life insurance pre tax.

Not PP but live within your means a bit more? I dont make $400K - we net a much more modest $142,000 a year after 401k and all. Mortgage is $2,200 ($1.2M house, we put money down). Everything else is about $6K a month, with public school. That leaves us with $3K a month for vacations and such. Certainly if you added $70K to our net income, I'd hardly be breaking a sweat adding another $3K a month to our expenses for private.