Breakdown of income required to be considered "Rich" in 10 areas

[TheSlamma]

My wife and I are close to the top 20% mark in Denver, but we feel we do pretty well because of the choices we make. Sure we don't life in the best neighborhood but we'll have this house paid off in less then 15 months because it's not in the wealthy area. Outside of our mortgage we have no debts, we also have a spartan home, we only own things we need or really want. When we travel we know how to get great deals on things like airfare, local transportation, lodging and avoiding tourist traps.

 

[nobodyknows]

Originally posted by: Ocguy31
Our household (Me + SO) will reach 200 this year, but we sure dont feel rich in our area. Everything is relative.

Being "rich" and being "well off" are two totally different things. Don't expect people getting by on $25,000 a year to sympathize with you too much.

 

[CycloWizard]

Originally posted by: Insomniator
Something does not add up there. 60k a year = 40-45 after taxes. Even if he was a postman for 50 years thats 2.25 million total. So unless he managed to live on 20 grand a year, meaning single and in a shed eating ramen every day then I don't understand.


Then again I guess he's getting some ridiculous pension.

I've lived off of 12k or less until I was 23, then 18k until I hit 25. Then I started making 23k. I wasn't exactly scraping to get by, but I didn't own a house or a new car. People lose their ability to even conceive of a thifty lifestyle after they start making higher dollar amounts. It's not that hard really, as long as you don't feel like you have to keep up with the Joneses.

For the last six months, I've been making $80k and still live almost the same lifestyle (not married... yet ). I've socked over $20k away. I still live in a dump (my portion is $233/month), but I have a new car after driving my last one into the ground at well over 200k miles. I maintain a thrifty lifestyle because it wasn't that long ago that I was a construction worker, then a janitor, then a roofer, then a door-to-door vacuum salesman. Despite having moved on from manual labor to more intellectual pursuits, I remember the value of a dollar. I couldn't care less what I dress like (jeans and a t-shirt FTW) or how fancy my stuff is. I care if my place keeps me warm in the winter, cool in the summer, and dry year round. I care if my car gets me from point A to point B. I care if my clothes conceal my nasty bits.

 

[LittleNemoNES]

wrong thread

 

[dullard]

Originally posted by: Insomniator
Something does not add up there. 60k a year = 40-45 after taxes. Even if he was a postman for 50 years thats 2.25 million total. So unless he managed to live on 20 grand a year, meaning single and in a shed eating ramen every day then I don't understand.

60k in the US (I say that since SilverPig lists a Canadian address in his profile) is ~50k of taxible income after the standard deduction and personal exemption. That gives about $8850 in federal tax, $4500 in SS/medicare tax, and $3000 in many state income taxes. He'd be left with $43-$44k per year, your after-tax estimate is correct. However, the rest of your post doesn't add up.

It isn't too difficult to live off of $20k/year in most of the US. Think $500/month rent (heck, most of the US you can still find sub $400/month rent if you go cheap or get a roommate. That leaves you with $1167/month to do whatever you want. Even at $1000/month rent that you can get in almost any city in the US, you'll have $666 a month for food and utilities. That is still quite doable without really scrimping much especially if he didn't need his own vehicle.

Lets suppose he spends $24k/year leaving $20/year for investments. If he got a 10% return on average, he'd be a millionaire in 19 years and have $3 million in 30 years. You could easilly have that $3 million in the mid 50s with a $60k/year salary. Of course, I'm ignoring inflation and raises. But retiring a millionaire in your mid 50s is quite doable with that kind of salary. If he spend down to $1M after buying a house, country club membership, and a ferrari, then he'd have little to no expenses and have $100k/year in interest coming in at 10% returns. I doubt this story took into account the recent stock market crash though. He may have to make due with only $50k/year now (with his home paid for, vehicle paid for, and entertainment paid for that does sound quite nice).

 

[dullard]

Originally posted by: BoberFett
I quoted you, because that was an incredibly stupid statement. $100,000/yr does not buy you any political influence.

In MOST of the US, $10k will buy you enough votes to be on the city council. $10k will get you into many country clubs where you can mingle with your local area's rich and powerful. $100k (if you save a bit) will buy you a seat at a dinner with the current president or the ex-president for a speech at your dinner.

No, just because you have $100k/year of income doesn't suddenly make you powerful. But, if you choose to dedicate a lot of your income to the cause, you can mingle with the powerful or you can have power on the local level.

I've simply stated over and over again that below $100k you have little to no chance of being powerful. But at $100k and above you do have a good chance if you really work at it. Of course, the higher your income the less work you need to put in.

 

[Peelback79]

Originally posted by: CycloWizard

Originally posted by: Insomniator
Something does not add up there. 60k a year = 40-45 after taxes. Even if he was a postman for 50 years thats 2.25 million total. So unless he managed to live on 20 grand a year, meaning single and in a shed eating ramen every day then I don't understand.


Then again I guess he's getting some ridiculous pension.

I've lived off of 12k or less until I was 23, then 18k until I hit 25. Then I started making 23k. I wasn't exactly scraping to get by, but I didn't own a house or a new car. People lose their ability to even conceive of a thifty lifestyle after they start making higher dollar amounts. It's not that hard really, as long as you don't feel like you have to keep up with the Joneses.

For the last six months, I've been making $80k and still live almost the same lifestyle (not married... yet ). I've socked over $20k away. I still live in a dump (my portion is $233/month), but I have a new car after driving my last one into the ground at well over 200k miles. I maintain a thrifty lifestyle because it wasn't that long ago that I was a construction worker, then a janitor, then a roofer, then a door-to-door vacuum salesman. Despite having moved on from manual labor to more intellectual pursuits, I remember the value of a dollar. I couldn't care less what I dress like (jeans and a t-shirt FTW) or how fancy my stuff is. I care if my place keeps me warm in the winter, cool in the summer, and dry year round. I care if my car gets me from point A to point B. I care if my clothes conceal my nasty bits.

Lulz. Going to have the phrase 'nasty bits' floating around in my head all day now. Cheers to fiscal conservatism and blue collar jobs. I myself am working as a maintenance man with the company offering to send me back to school early next year. I'm going to jump on that opportunity to better myself through college. I wish I had the discipline to get a degree earlier in my life but live and learn. I'm thinking of going down the path of PLC and factory computer programming. Possibly learn to set up robots. I'm also working right now to get my CDL. So hopefully, regardless of the economy, I'll always be able to do something, even if it is get my Break one-nine on (trucker joke).
Anyways. I only have ever taken home at the MOST after taxes 28-33k a year. And I'm richer than every single person in this thread. I have the best parents, family, brothers and sisters, and the cutest niece ever. I could throw up pics of my house and car that I've afforded over the years but that isn't why I consider myself rich. Unfortanetly I believe the 'American Dream' has been corrupted over the years. In my eyes it's not what you got, it's who you got (nightmarish grammar I knows). But maybe I'm just old fashioned.

 

[CycloWizard]

Originally posted by: Peelback79
Lulz. Going to have the phrase 'nasty bits' floating around in my head all day now. Cheers to fiscal conservatism and blue collar jobs. I myself am working as a maintenance man with the company offering to send me back to school early next year. I'm going to jump on that opportunity to better myself through college. I wish I had the discipline to get a degree earlier in my life but live and learn. I'm thinking of going down the path of PLC and factory computer programming. Possibly learn to set up robots. I'm also working right now to get my CDL. So hopefully, regardless of the economy, I'll always be able to do something, even if it is get my Break one-nine on (trucker joke).
Anyways. I only have ever taken home at the MOST after taxes 28-33k a year. And I'm richer than every single person in this thread. I have the best parents, family, brothers and sisters, and the cutest niece ever. I could throw up pics of my house and car that I've afforded over the years but that isn't why I consider myself rich. Unfortanetly I believe the 'American Dream' has been corrupted over the years. In my eyes it's not what you got, it's who you got (nightmarish grammar I knows). But maybe I'm just old fashioned.

I definitely agree. People who derive their value from material possessions will always feel poor. Good luck going back to school!

 

[Throckmorton]

Look at how close New York and Houston are.

Houston top 20% avg $195,353
Houston top 5% avg $350,665

NYC top 20% avg $240,112
NYC top 5% avg $456,558

From the way some people talk, you'd think you need to be a millionaire to be middle class in NYC, but the difference for the wealthiest is about 20%

 

[mooseracing]

Originally posted by: Slew Foot

Originally posted by: CPA

Originally posted by: Ocguy31
Our household (Me + SO) will reach 200 this year, but we sure dont feel rich in our area. Everything is relative.

same here.

Fvck, the wife and me will near a half mill and we dont feel rich at all, then again, we're heading to the 3rd most expensive metro on that list. We'd need over 700K to feel rich.

Holy shit....thats nuts. I couldn't afford to live in that area no matter what I was making.

80-100k is rich to me/area. I couldn't imgine what I would be spending it on. Granted I am the type that buys a cheap forclosed home to fix up, newest car is over 12 years old, and am a huge packrat.

 

[Xavier434]

According to that article, I am no where close to being rich. I don't feel that terribly far off though. My tastes are not expensive by any means and I hardly use the comparison of those around me to justify how "rich" I feel though so I guess that makes most of the difference. The only actual expensive thing I ever want that rich people have the opportunity to do much more than me is to be able to travel a lot, but even then I find that most of the rich people I have met are far too busy to travel other than for business.