Anonymous asked: "Not rich by any measure, but some of my friends are really well off. I guess after a certain age, and after kids and stuff, you can’t really do 40s and a house party every weekend." --- How much income should you be getting to be considered "rich"? Not being a troll, just genuinely interested.
That’s an interesting question.
I don’t think there really is a quantifiable level of income that’s a line in the sand between rich and not rich (because the opposite of rich isn’t always poor).
To me, being wealthy or rich is more about quality of life that’s delivered by your income. For example, if you make a million dollars a year but you have 10 kids and 5 brothers and sisters who also have kids that you have to support with your income. You’re probably living the same miserable life that someone making $30k a year is living. So the income isn’t as relevant.
I think that once you’re making enough to buy the majority of things you both need and want and you’re able to save and invest a significant portion of your income (say 5% to 10%) and you have no real debt (strategic leveraging isn’t debt in my opinion) and you’re able to purchase top shelf goods without having to consider the alternatives and the costs, you’ve made it. Then you can consider yourself rich.
Side note: The biggest problem with income is that the more of it you earn the more ways you find to spend it. Because of all sorts of factors, tax code, interest rates, Federal Reserve, inflation, etc, saving money is not beneficial in the long term and consumerism is the most promoted aspect of our society.
There’s also a difference being rich and wealthy.
Very few get to the point that they start to save additional income, even after finding ways to spend it. I think those are the only people I actually consider wealthy.