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

[Anonymous]

Anonymous wrote:

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.

The key word here is need. There are a lot of things people have that they don't need.

[Anonymous]

Anonymous wrote:Everyone spends 5% more than they make.

I don't know anyone who spends more than they make. I think people make a ton now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lots of posts on this so I believe it but I don't understand it.

Is it really true that the .01% is that much better off than everyone else so it's them and everyone else? I feel like that is the underlying argument about high earners not being rich.

OP, I make over that, and, I am not sure what 'feeling rich' means? I work hard, and, am grateful for it. But, do I 'feel rich'? I am not even remotely sure what that is, or, what it means. Maybe you can better explain your thinking?

DP. Pretty sure the OP means why don't you wealthy people feel wealthy. It's not rocket science. If you make over $500k a year, you are wealthy. Period. If you don't feel wealthy, WTH is wrong with you?

Well, first off, you can make $500K a year, and, have no debt, have $200K in debt, or $3mm in debt. It's not rocket science, as you said. Nothing is wrong with me. What is wrong with you?! The OP's question, and premise, is very one dimensional. He/she seems to arrive at the conclusion that if you make $500K a year, you are both wealthy AND feel rich. What about if you only make $499K a year? Ya can't feel rich yet?

If you make $500 a year and you have $3m in debt, you are rich and stupid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Lots of posts on this so I believe it but I don't understand it.

Is it really true that the .01% is that much better off than everyone else so it's them and everyone else? I feel like that is the underlying argument about high earners not being rich.

OP, I make over that, and, I am not sure what 'feeling rich' means? I work hard, and, am grateful for it. But, do I 'feel rich'? I am not even remotely sure what that is, or, what it means. Maybe you can better explain your thinking?

DP. Pretty sure the OP means why don't you wealthy people feel wealthy. It's not rocket science. If you make over $500k a year, you are wealthy. Period. If you don't feel wealthy, WTH is wrong with you?

May I ask what your income is? As people are saying, it’s all relative. If you, or the people in your circle all make $70k, then $500k seems “rich.” But boring life stuff sucks a lot of it away. Aside from taxes (which takes a lot, btw) then there is also a big mortgage, tuition, and all sorts of other bills.

But. Yes, $500k means you get to buy organic, wear nicer clothes, take vacations, and drive a nicer car. But not “too” nice! 500k still means you have to be careful and stay within budgets.

OMG no. If you make $500k a year, you are rich. Having nicer clothes, taking vacations, driving a nice car, having a big house...it makes you a rich person.

Are only the rich but unintelligent people answering this thread?

[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'???

If you are spending $200k on a very sick child, I am sorry to hear that. But you still have $300k a year for other expenses.

The median income in the US is around 60k. The median income in this area in 2017 was around 82k. Your leftover income would still be more than 3x that. You are rich. You are uber rich. If your friends make $1m a year, guess what, you are still rich.

[Anonymous]

Was just discussing something along this line last night with DH on how fortunate we are that money can help give our DC choices. Example, DC wants to do an internship which would help in career later on but housing will have to be subsidized by us. We were just discussing how some kids have no choice but to turn down such an opportunity due to financial reasons which definitely isn’t fair.

[Anonymous]

Am I the only person who feels like one angry poster is responding to all these posts??

One big reason I don’t think I’ve seen mentioned is student loans. Often a couple making $500k has several hundred thousand dollars in student loan debt. That’s often what it takes to get those jobs and that is an albatross around your neck.

I also second the thoughts on job insecurity. The reality is, BigLaw, Banking and Consulting are all steep pyramids. Everyone can not be partner. So yes you may be making $250k at BCG just three years of out b school, but they may knock on your door and tell you the ride is over. And you’d better hope you’ve saved and lived properly to adjust to your $150k new salary in corporate.

Another huge factor is personality. dH are both type A and love tracking our investments and spend. This means we watch our money. When you watch your money, I think it’s harder to feel rich. Conversely, I know a few people with good professional services jobs who are more laidback and spend as they please. I do think they feel rich. I doubt DH and I ever will, largely because of personality.

[Anonymous]

Anonymous wrote:

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.

Yes. Lack of stress from money is amazing. If you make $500k and are stressed because of finances, you are doing something really wrong.

[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'???

If you are spending $200k on a very sick child, I am sorry to hear that. But you still have $300k a year for other expenses.

The median income in the US is around 60k. The median income in this area in 2017 was around 82k. Your leftover income would still be more than 3x that. You are rich. You are uber rich. If your friends make $1m a year, guess what, you are still rich.

I will repeat it: if you make $500K, you start off by giving a lot of it to the gov't in the form of taxes. About $175K. And, if you have medical expenses of $200K, you have about $125K left to house yourself, eat, insure yourself, save, etc etc. That is NOT rich. Very far from it.

[Anonymous]

Anonymous wrote:Am I the only person who feels like one angry poster is responding to all these posts??

One big reason I don’t think I’ve seen mentioned is student loans. Often a couple making $500k has several hundred thousand dollars in student loan debt. That’s often what it takes to get those jobs and that is an albatross around your neck.

I also second the thoughts on job insecurity. The reality is, BigLaw, Banking and Consulting are all steep pyramids. Everyone can not be partner. So yes you may be making $250k at BCG just three years of out b school, but they may knock on your door and tell you the ride is over. And you’d better hope you’ve saved and lived properly to adjust to your $150k new salary in corporate.

Another huge factor is personality. dH are both type A and love tracking our investments and spend. This means we watch our money. When you watch your money, I think it’s harder to feel rich. Conversely, I know a few people with good professional services jobs who are more laidback and spend as they please. I do think they feel rich. I doubt DH and I ever will, largely because of personality.

I have spreadsheets and projections and models and update things daily. I always feel rich. When I had $30 in my checking, I felt worried. I don’t remember the last time that money was the reason I did not do something. If you don’t feel rich at $500k, you spend too much.

[Anonymous]

Anonymous wrote:

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'???

If you are spending $200k on a very sick child, I am sorry to hear that. But you still have $300k a year for other expenses.

The median income in the US is around 60k. The median income in this area in 2017 was around 82k. Your leftover income would still be more than 3x that. You are rich. You are uber rich. If your friends make $1m a year, guess what, you are still rich.

I will repeat it: if you make $500K, you start off by giving a lot of it to the gov't in the form of taxes. About $175K. And, if you have medical expenses of $200K, you have about $125K left to house yourself, eat, insure yourself, save, etc etc. That is NOT rich. Very far from it.

If you have a child that needs $200k in medical care annually, your child would qualify for Medicaid through Katie Beckett or similar. I bet most people making $500k have decent insurance that would cover a large portion of the expenses.

[Anonymous]

I know college grads making over $100K in their first year. Are they rich too?

[Anonymous]

Anonymous wrote:I know college grads making over $100K in their first year. Are they rich too?

I made $90k at my first job. I thought I had hit the lottery. It was amazing.

[Anonymous]

First, a HHI of $500k is objectively rich. Let's get that out of the way.

But, whether it *feels* rich depends on a number of things that have already been mentioned, and one that I didn't see - the lifestyle you grew up with. I grew up solidly middle class. But I feel like my life has taken one step up from that (partly because of the changing expenses we have these days, and partly because of the much higher cost of living in this area. We had a 4 BR, 3.5 BA house on three acres, with a barn, cats, dogs, horses, and went to a great public school. We have that now - but it costs a lot more in this area than id did in my hometown.

[Anonymous]

14:53 here. The sheer speed of negative responses again makes me suspicious that we’re dealing with one really aggravated poster.

So much for a meaningful conversation. I’ll get back to Thanksgiving cooking.