Reply to At what HHI did you stop feeling middle class?

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[quote=Anonymous][quote=Anonymous]In 2003 right out of school we were making $300K. We lived a very nice life. It felt like we effectively had unlimited discretionary income. We’d go have dinner with partners at my husbands firm and while we weren’t rich it was obvious what our life would look life if we stayed on this track.

By 2011 (mid 30s) we were consistently making $1M+/yr. we had kids and costs had gone way up, but were objectively wealthy. We could do things that none of our close circle could (ie we owned a $500k second home and had just purchased a $3M primary residence) and could afford anything, within reason that we wanted.

Over the next several years income sky rocketed. $1.3M,  $1.4M, $1.7M a few years around $2M. At this point I felt rich. Not urgent rich but rich enough that I stopped worrying about having enough money to buy anything that I could possibly want and only worried about king I’d have to maintain this income to retire with a comparable level of income (once one literally never has to afford about affording things, one never wants to go back). By this point, Dh objectively felt rich but subjectively probably not.

Around 40 income rose to $3M and now at mid 40s is $4M. I’m now on the cusp of feeling like I have enough to last forever at my current spend rate with virtually zero concern that it would ever run out. I’m very conservative in my calculations. I like to presume a safe 5% return rate with 3% inflation rate (in other words making a net 2% on investable assets). I presume spending to never decrease. And then I run a Monte Carlo scenario looking for 100% success rate living to age 100 for me and dh. Presumption of zero social security.  We’re not quite there. Running about 86% right now although some minor tweaks quickly gets us there.  At this point I feel borderline I’ll be rich for forever and I think we are close to being able to confidently be rich for forever.

So in answer to your original question. Income of $4M. Net worth of $33M is borderline of feeling truly rich (not the same as not feeling middle class, I don’t think I’ve felt middle class). Rich for forever is probably a net worth of $40M or so. Probably $30M in investible assets would do it. 
[/quote]

Thank you for posting this.

I think it illustrates the point that your desired spending level has a massive impact on how much money you need to feel rich. Some people feel they can buy whatever they want with 400k, others need $4m. It truly has nothing to do with what you can objectively purchase with the money, it is a feeling of comfort which is different for different people.[/quote]

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