Why do people pretend HHI matters? And use it as a gauge for consumption/lifestyle

[Anonymous]

I am sick of its use. It is worthless. If you are 300k HHI with a trust fund and rich parents, you can afford a 2 million house, hell go nuts, do 3 million if you want to, go take that bahamas vacation or in the french riviera. If you make 300k HHI and have to subsidize your parents or siblings, it becomes a completely different story all together.

Sorry, "high-ish" incomes means very little in this world, especially with a high marginal tax rate.
If you had 5 million in wealth, you could live like a king on 100k of income, you could lose your job and not worry for a while. If you are 100k in student debt and no wealth, your 500k HHI means very little in a high COL area, if you are laid off, you are extremely stressed financially.

[Anonymous]

I don’t think it’s worthless. The ability to earn high income in long run more valuable than relying on family money.

[Anonymous]

Income is very important for gaining and maintaining wealth. It matters a lot in all situations.

If the OP doesn't like reading about other people and their HHIs, then maybe don't participate in those threads.

[Anonymous]

Go tell the family making a median HHI of ($75k in DC) that your 500k HHI "means very little." Get some perspective.

[Anonymous]

It matters a great deal if you don't have much net worth, which is the case for the vast, vast majority of American families, despite what you may read on DCUM. Only the top 20% of households have savings to speak of.

[Anonymous]

I agree. My STBX made a nice income, $300k or so.

After the divorce it’s going to be very apparent how far salary gets you vs inherited wealth.

[Anonymous]

Lol you are so out of touch OP. Tell this to the family of five across the river who subsist on 35k/year. You sound like you’re bad with money.

[Anonymous]

Oh look! It's another"my money is all gone when I spend it but I don't like where I had to spend it so I don't actually really make that much money" post. It's been too long!

[Anonymous]

Oh please. If you are earning low-six-figures OR mid-six-figures, you are more well-off than the vast majority of Americans. Some of us are struggling to save for retirement or children's college educations.

[Anonymous]

Anonymous wrote:Go tell the family making a median HHI of ($75k in DC) that your 500k HHI "means very little." Get some perspective.

I was thinking the same thing

[Anonymous]

Both HHI & networth matter but I would certainly choose a high net worth over high HHI. High HHI is easier to come and go. One can also lose a high net worth but it is less likely unless you are a totally idiotic investor.

[Anonymous]

There is truth to this. If you make $250k, taxes $75k, spending $125k, saving $50k (all reasonable numbers for a successful family) it will take 25+ years to replace that $125k with earnings from investments.

Inherited wealth used wisely gives a big leg up. But at the end of the day we all live the life we create, wealth or not.