Why do people who make 500k + not "feel" rich?

[Anonymous]

Because they are material, shallow, and unworldly.

[Anonymous]

My HHI (two adults, two kids) is $300k. I feel rich because that income gives me a tremendous amount of CHOICE and flexibility in how I prioritize spending and saving as well as in the specific decisions I make that impact my spending and saving (ie, where to live, where to send my kids to school, etc).

[Anonymous]

It's simple.

Regardless of what people make, the ones who post HERE don't feel rich. The ones who DO feel rich, don't post here (or anywhere else for that matter, they are out doing other things, enjoying themselves)

The posters here are not a reflection of the real world.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Because 85% of my pay is spent on taxes, savings, childcare, mortgage and education.

One day I’ll be rich when the kids go off to college. Until then most of my money is going to the future full pay college, childcare required to keep my high paying job and savings.

This is ridiculous. We are in the same position. I feel rich because we can do all these things and not really worry. People in similar circumstances who don't feel rich are whiners with no sense of perspective.

Gosh, is that some people think “rich” is now? The act of saving money and not being stressed? That’s sad because that used to qualify as middle class. You know all the stories of “we were middle class, but we had all we needed.” Now simply saving money puts you in the rich category. I suppose myself and some others still think of rich as oodles of money and jewels and mansions, and all that jazz. 500k is affluent, but rich means rich.

[Anonymous]

It's all in what your social circle is.
We make $400K and in general I feel rich. I want for nothing. I work in healthcare in DC (not as a doctor) and I see first hand what poverty is every day.

My oldest kid just started in a $45K DC private. We are clearly in the lowest income bracket there (outside of those receiving financial aid). My kid has been having playdates and I have yet to be in a house under $3 million (and no, my kid isn't targeting wealthy kids---this is just a totally random sample for the school). At this school we are the working poor. If this was my entire DC world and I stayed it in for years I easily begin to feel poor.

[Anonymous]

Again, if you make $500K, it seems very easy to judge that person, without knowing a single detail about that person. What about a parent whom earns $500K, but, spends like $200K a year on a very sick child? Is that person materialistic???? Because, according to one poster, that is what you are. INSANE!!!! That same person could be living paycheck to paycheck. Do you think that person 'feels rich'???

[Anonymous]

Anonymous wrote:Again, if you make $500K, it seems very easy to judge that person, without knowing a single detail about that person. What about a parent whom earns $500K, but, spends like $200K a year on a very sick child? Is that person materialistic???? Because, according to one poster, that is what you are. INSANE!!!! That same person could be living paycheck to paycheck. Do you think that person 'feels rich'???

What you're describing is an extenuating circumstance and not something that happens to most people. Most people in the responses are citing their high mortgages, private schools, 401K account contributions, 15K vacations, and being surrounded by/trying to keep up with millionaire friends as reasons they don't feel rich.

[Anonymous]

So, in my example, that lucky parent is exempt from the label offered up by you and the OP?

[Anonymous]

Anonymous wrote:Again, if you make $500K, it seems very easy to judge that person, without knowing a single detail about that person. What about a parent whom earns $500K, but, spends like $200K a year on a very sick child? Is that person materialistic???? Because, according to one poster, that is what you are. INSANE!!!! That same person could be living paycheck to paycheck. Do you think that person 'feels rich'???

That clearly is the outlier. And even then, they'd have $300k and should be extremely comfortable. If you are at all pinched on $500k, you have downsizing options. This isn't a $50k household budget where every penny is counted.

[Anonymous]

First, let's define what is rich.

I imagine no one is going to disagree that having an apartment on Park or Fifth in New York, plus a big house in the Hamptons and a ski chalet in Colorado and a pied a terre in Paris and an art collection of known names is definitely someone who is rich.

A family with two working parents and a HHI of $500k and a Bethesda colonial is nowhere near that category. So if such a family is rich, what does it make the above family?

There's a reason why "upper middle class" exists as a demographics and your typical HH of two working professional parents bringing home together 500k very much falls into the category of comfortably off upper middle class.

They reason they don't feel "rich" is because they're not rich. Comfortable and protected from most of life's financial ills, yes, but rich? No.

[Anonymous]

Anonymous wrote:First, let's define what is rich.

I imagine no one is going to disagree that having an apartment on Park or Fifth in New York, plus a big house in the Hamptons and a ski chalet in Colorado and a pied a terre in Paris and an art collection of known names is definitely someone who is rich.

A family with two working parents and a HHI of $500k and a Bethesda colonial is nowhere near that category. So if such a family is rich, what does it make the above family?

There's a reason why "upper middle class" exists as a demographics and your typical HH of two working professional parents bringing home together 500k very much falls into the category of comfortably off upper middle class.

They reason they don't feel "rich" is because they're not rich. Comfortable and protected from most of life's financial ills, yes, but rich? No.

Ironically - there are people on other threads I've read trying to argue that 300-500k is not upper middle class either. They think its middle.

[Anonymous]

I'd feel rich at $100K.

[Anonymous]

Anonymous wrote:Not sure. I feel rich. Maybe because I grew up not rich and I clearly understand the differences between then and now? I remember when I first felt rich: I was having a party and I just bought what I wanted for food and drinks without regard to money. I still feel that way.

This is me too. It took me years to stop buying whole chickens and breaking them down vs. just getting thighs or breasts, or whatever I actually needed. I just felt incredibly stressed by the price per pound difference, long after I could afford to buy whatever made our lives easier.

We now live in a neighborhood and are friends with a lot of truly rich people, who make magnitudes more than our $500K plus per year, and it hasn't really changed my perspective at all. I get a kick out of some of the really fun ways they find to spend their money, but I don't have any envy. Almost every day, usually on the way into work, I say a kind of prayer of thanks for my family's blessings, and I'm not religious at all. Living life free from financial anxiety is an incredible gift. If you make that much and find yourself feeling poor or financially stressed, this would be a great time of year to stop and really think about everything in life that you are taking for granted.

[Anonymous]

Anonymous wrote:It's all in what your social circle is.
We make $400K and in general I feel rich. I want for nothing. I work in healthcare in DC (not as a doctor) and I see first hand what poverty is every day.

My oldest kid just started in a $45K DC private. We are clearly in the lowest income bracket there (outside of those receiving financial aid). My kid has been having playdates and I have yet to be in a house under $3 million (and no, my kid isn't targeting wealthy kids---this is just a totally random sample for the school). At this school we are the working poor. If this was my entire DC world and I stayed it in for years I easily begin to feel poor.

This has not been my experience with similar privates...there are many $400k-$800k/year families who prioritize education expenses and make it work but are far from independently wealthy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Again, if you make $500K, it seems very easy to judge that person, without knowing a single detail about that person. What about a parent whom earns $500K, but, spends like $200K a year on a very sick child? Is that person materialistic???? Because, according to one poster, that is what you are. INSANE!!!! That same person could be living paycheck to paycheck. Do you think that person 'feels rich'???

That clearly is the outlier. And even then, they'd have $300k and should be extremely comfortable. If you are at all pinched on $500k, you have downsizing options. This isn't a $50k household budget where every penny is counted.

Wait a sec....they make $500K, less the $200K on sick child, so, according to you, they have $300K. What about things like, you know, taxes?????