Why are people so hesitant to call themselves rich/wealthy when they are by any definition?

[Anonymous]

To me, terms like "rich" and "wealthy" have more to do with net worth than income.

Someone who has $20M in investments, doesn't work, and lives strictly off the income is still much richer than someone who makes $1M a year and spends nearly all of it on mortgages, childcare, staff, vacations, etc.

I don't really care how much money you make. I'd rather know what your net worth is. But obviously that is taboo and something people never talk about, lol.

[Anonymous]

Anonymous wrote:

Anonymous wrote:LOL, I once posted on DCUM about a financial question and was told that we are "poor" and "not saving enough" because we *only* have ~$5.5M in liquid investments plus ~$1M equity in our house. At age 42.

Apparently we are still one medical emergency away from bankruptcy. So, you know. No fancy vacations or dinners out for us. Ramen or starve.

The crazy thing is, this is true. It could happen.

Don't be ridiculous. Not as long as you have health insurance. Someone with $5.5M in liquid investments is likely smart enough to purchase COBRA or get health insurance plan on the market exchange if they are unemployed and not risk going without insurance.

[Anonymous]

Because I have seen what it is like to be truly rich. It means actually never having to work because you have so much generational wealth that, assuming you don't completely blow it all irresponsibly, you are your kids and their kids are forever set.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I echo the PP saying there are always people making more.

In many DC area neighborhoods, 400-800k HHI are not hard to come by.

We make about 650k and know we are successful but when my boss makes millions a year with multiple homes, cars, etc - we are peanuts. I compare myself to uber successful people and to me, I am a simpleton.

To the average American, we are rich.

Umm, to everyone you are rich. You are in the top 2%, possibly 1% of earners. Just because you know richer people does not make you "not rich"

You are wrong. Because not "everyone" agrees. As this thread shows you.

Who really cares what poor people think about wealthier people? Put it this way, the affluent don't differentiate nor care about the 20k HHI versus 40k HHI.

Get a life. Don't worry about other people and their wealth.

[Anonymous]

Anonymous wrote:Because speaking of it without some wood to knock on means the wealth will evaporate.

This, plus they don’t want to be hit up for money. They pretend they also struggle like the rest of us

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I echo the PP saying there are always people making more.

In many DC area neighborhoods, 400-800k HHI are not hard to come by.

We make about 650k and know we are successful but when my boss makes millions a year with multiple homes, cars, etc - we are peanuts. I compare myself to uber successful people and to me, I am a simpleton.

To the average American, we are rich.

Umm, to everyone you are rich. You are in the top 2%, possibly 1% of earners. Just because you know richer people does not make you "not rich"

You are wrong. Because not "everyone" agrees. As this thread shows you.

Who really cares what poor people think about wealthier people? Put it this way, the affluent don't differentiate nor care about the 20k HHI versus 40k HHI.

Get a life. Don't worry about other people and their wealth.

Yet here you are commenting on posts about "what is rich". I suppose that should apply to you as well---go get a life

[Anonymous]

Only 13% of millionaires consider themselves rich.

[Anonymous]

I have a beautiful and comfortable home which to many rich people is too small or shabby. I have lovely kids go to great public schools that some rich people think are below private no matter what. I have a loving spouse to some people is earning too little. We go to 2-3 vacations internationally or domestically on economy class that rich people can’t bear. We earn about 400k and feel happy and satisfied. Am I rich? I don’t think so but I don’t care.

[Anonymous]

Anonymous wrote:I have a beautiful and comfortable home which to many rich people is too small or shabby. I have lovely kids go to great public schools that some rich people think are below private no matter what. I have a loving spouse to some people is earning too little. We go to 2-3 vacations internationally or domestically on economy class that rich people can’t bear. We earn about 400k and feel happy and satisfied. Am I rich? I don’t think so but I don’t care.

There is something especially sick about a post where you cast yourself as the victim when actually you’re quite rich by any sensible non-insane definition.

[Anonymous]

Anonymous wrote:Only 13% of millionaires consider themselves rich.

A million doesn't go as far as it used to

[Anonymous]

1) Because I wasn't raised rich and it feels weird
2) Once you acknowledge it, it can be taken away and/or you feel even more responsibility to help others

Also, yes, we are rich both by income and NW but as many other people will agree, we know many others who are much wealthier so by comparison we don't feel rich

[Anonymous]

Anonymous wrote:To me, terms like "rich" and "wealthy" have more to do with net worth than income.

Someone who has $20M in investments, doesn't work, and lives strictly off the income is still much richer than someone who makes $1M a year and spends nearly all of it on mortgages, childcare, staff, vacations, etc.

I don't really care how much money you make. I'd rather know what your net worth is. But obviously that is taboo and something people never talk about, lol.

Agree. Net worth is the right metric. No one in the DMV thinks we're rich because we earn less than $400K but if they knew we had no mortgage or other debt and had a net worth of $8M they'd realize it's all about NW.

[Anonymous]

Anonymous wrote:Only 13% of millionaires consider themselves rich.

A millionaire in 2023 doesn't have nearly the same level of wealth as a millionaire in 1923. One million isn't enough to live for the rest of your life if you have kids. It's not even a lot for one person to live on for 20 years of retirement.

[Anonymous]

Our HHI is $700k and we are as poor as church mice. We live off pieces of stale cheese and the occasional charcoal briquette.

[Anonymous]

Anonymous wrote:To me, terms like "rich" and "wealthy" have more to do with net worth than income.

Someone who has $20M in investments, doesn't work, and lives strictly off the income is still much richer than someone who makes $1M a year and spends nearly all of it on mortgages, childcare, staff, vacations, etc.

I don't really care how much money you make. I'd rather know what your net worth is. But obviously that is taboo and something people never talk about, lol.

Agreed, we have an HHI of 650K (but only since 2021), before that it was 400K for last 2 years, and 250K before that. We have a chance to build wealth, but honestly our NW is $3M (including house equity) in mid to late 40's because we came to US for grad studies and started very late, had to pay off grad school debts etc.. So yes, if you look at our income you would call us very rich, but networth not so much.. I call ourselves as financially secure, not quite rich. Our home is barely worth $1M and kids go to public schools in MCOL.

Having a $1M HHI for two decades vs two recent years is very very different. Networth is a much much better measure