Do you consider a net worth of 2.5 million "rich?"

[Anonymous]

The other post about downplaying wealth got me thinking, how do you define rich? Let me preface by saying this is not a humble brag. DH and I are both 38 with a net worth of 2.5 million, excluding our home. We are certainly comfortable, and probably more so than many people we know, but I don't consider us "rich." In this area, "rich" is such a relative term. Any thoughts?

[Anonymous]

rich enough for me.

[Anonymous]

You are absolutely, unquestionably rich. If your income from interest equals or exceeds the local median income, ie, you could never work another day in your life and maintain a roof over your head and food on the table, then yeah, you're rich.

And it's offensive to everyone who can't miss a single day of work (or a month, even) without financial catastrophe being the inevitable result to suggest that you are not.

[Anonymous]

If that is excluding your home, then you are rich.

Our house is worth one million but we live in an area of Arlington where that is a nice townhouse. Our retirement accounts are over 500. We have almost 1 million in other savings and investments. So we are at least 1 mil behind you.

It feels well off but not rich. I'm sure that sounds crazy to most people. Here's the thing. The house and retirement accounts are untouchable. The savings includes what we'll need to raise four kids. We are currently spending what we 're making so savings aren't really increasing. Spending includes sensible cars a few years old and inexpensive clothes.

[Anonymous]

It is rich according to every reasonable definition, OP, and in your heart you know it.

Whether you should feel more comfortable / less anxious about money depends on what your expenses are and your own idiosyncrasies. Some very wealthy people agonize over their millions.

Personally I would not feel "set" with that amount, but that is just me and my family experience: I have seen much bigger sums than that vanish into thin air, dishonest managers and greedy battles over inheritances.

Invest wisely.

[Anonymous]

I consider rich to be 1.5-2 million net assets EXCLUDING all real estate and retirement after all debts are paid.

[Anonymous]

OP here. I promise I'm not trying to be offensive. It's just that around here, and it seems especially on DCUM, there's a tremendous amount of wealth. I'm not saying I'm not, but with 3 small kids, we're planing to keep on working for the next 20 years, at least. We still have expenses to cover that investment income doesn't cover. The point is, it seems like wealth is everywhere here.

[Anonymous]

Yes. Of course.

[Anonymous]

How did you amass 2.5 million by age 38?

[Anonymous]

OP, you are limiting your response sample to those who 1.) choose to respond and 2.) are on DCUM.

Note there is no real way to gage true wealth by anonymous response alone.

If what you are saying is true, you are wealthy by most of the U.S. standards, including, but not limited to this area.

Most people I know would not be responding here. Just saying.

[Anonymous]

Yes you are rich, but I can understand your thoughts DC is full of the super rich. I think it's important to keep in mid how far the rest of America is from the super rich.

[Anonymous]

Not rich, on track for retirement at 60

[Anonymous]

Anonymous wrote:OP here. I promise I'm not trying to be offensive. It's just that around here, and it seems especially on DCUM, there's a tremendous amount of wealth. I'm not saying I'm not, but with 3 small kids, we're planing to keep on working for the next 20 years, at least. We still have expenses to cover that investment income doesn't cover. The point is, it seems like wealth is everywhere here.

19:04 here. I agree and disagree. I don't feel rich because I grew up without money and I thought being rich would mean many things that aren't true for me. I watch what I spend. I have to work or use savings. I don't get weekly massages or have a housekeeper.

But I don't think it has anything to do with other people in the area having money. That I don't get.

[Anonymous]

If that's not rich, what is? Not being snarky, genuinely curious what that would be?

[Anonymous]

Anonymous wrote:OP here. I promise I'm not trying to be offensive. It's just that around here, and it seems especially on DCUM, there's a tremendous amount of wealth. I'm not saying I'm not, but with 3 small kids, we're planing to keep on working for the next 20 years, at least. We still have expenses to cover that investment income doesn't cover. The point is, it seems like wealth is everywhere here.

It is not rich. Rich would mean that, in addition to being able to stop working and live off of your investments, you could also send those 3 small kids to whatever school you would chose through college (and maybe even grad school). Well, you would spend down most of your money just to put 3 small kids through private school. Assume $30k+ per child for even 10 years. That's almost 1mm right there and you haven't even paid for college yet. Sad as it sounds, you are comfortable, not rich.