Comments on: ‘Experts’ Say Consider Yourself Rich if You Have $5 Million

By: Gord

Gord — Sat, 13 Feb 2010 18:36:39 +0000

Rich is absolutely relative and yes there can be substantial differences in ones perceived wealth between two individuals that have similar or the same net worth. There’s a substanital difference between one having a net worth consisting of a high value principal residence versus someone with a greater percentage of their net worth in truelly investible assets.

The actual make up of your net worth is an important determinate in whether you actually feel wealthy.

By: Chris

Chris — Fri, 03 Apr 2009 18:10:04 +0000

Rich is definitely relative. I remember how proud my brother was landing a 100k salary.. That number just sounds awesome, doesn’t it? He lives in Mountain View, CA and just closed on a trailer house in a crap neighborhood because that’s all he can afford to buy.

I’ll take my 50k in the Midwest any day…

By: Dollar dude

Dollar dude — Tue, 16 Sep 2008 13:05:35 +0000

I think I can’t become rich at all because my annual income is not over $20,000 per year…

By: Kitty

Kitty — Fri, 29 Aug 2008 23:24:35 +0000

I earn 107K+awards, so it usually comes up to about 113K and I am single. I don’t think I am rich. Maybe comfortable, but not rich. I do have savings, but a serious illness with insurance refusing to cover major items could probably wipe me out. Another reason people with higher incomes don’t consider themselves rich is that income comes from a job. Something happens with a job – here goes your income.

I also think that poverty is relative. Maybe it is because I am an immigrant, but to me there is a difference between not being able to buy a wide screen TV or to afford to buy a house (which is not a necessity – one can rent or buy a co-op or condo) and between not being able to put food on the table; between not being able to buy designer clothes and not being able to buy any warm clothes to survive the winter. Certainly, $1 can buy more in poorest places, but not everywhere. When my mother took a tour of Acapulco that went beyond tourist area, she saw houses that looked like grass roof on beams with no walls. With several kids under these roofs. She told me she’d never seen such poverty, even though she survived 2nd World War in Russia.

Also, there are some places in this world where cost of living is comparable to that in the US but salaries are much smaller. For example, Moscow is considered the most expensive city in the world or St Petersburg (Russia) is also among 10 most expensive cities. Yet my engineer-with-PhD cousin in St Petersburg earns $500 a months on a job in a government research lab. Yes, some food in stores – like potatoes and bread – is cheaper than in the US. Some meat produce is comparable or maybe half as expensive. But certainly not proportional to difference in salaries. Yet my cousin doesn’t consider herself poor.

By: akb

akb — Fri, 29 Aug 2008 19:03:24 +0000

@JEFF According to the 2005 Census numbers a $175K household income puts you in the top 5% in the US. Congrats! You are rich.

By: Miguel

Miguel — Thu, 28 Aug 2008 15:40:33 +0000

@JEFF – “…coupled with my housecleaner, pool guy, landscaper, son’s guitar teacher….on and on….”

Were you intending to be ironic or did it just happen accidentally? If you’ve got a housekeeper and a pool then you aren’t doing so bad now are you. I just find it weird that no matter how much money people have or make, EVERYBODY thinks they are middle class. There is some sort of cognitive disconnect, I think its called hedonic adjustment.

Maybe its because the terms Upper Middle Class or Upper Class jus don’t feel right anymore. There must be something in between middle class and rich that works. Marketers like the word “affluent”. It kinda says you’ve got an above-average income and enough to spend some on the finer things in life, but you still need to keep your job in order to keep up the lifestyle.

I don’t feel rich either – certainly not compared to some of the jetset folks I know. I do try to keep it all in perspective. I know I’m not middle class either, certainly not according to the tax man.

By: Matt

Matt — Thu, 28 Aug 2008 02:13:52 +0000

I agree that rich is entirely relative and you’re totally right that if you had a net worth of 5MM you might not feel rich its all relative to the situation that you find yourself in. I think a very significant factor in that situation is your take on it; your attitude towards it will really make a huge difference. If you had 5 million dollars but thought you needed 10 million for your ‘needs’ then you might feel like you’re struggling but conversely if you had 100K but felt like you didn’t need much then you’d say you were rich.

This is an abstract point where everyone’s opinion is valid and there should really never be and clear consensus because each persons situation is unique.

By: JEFF

JEFF — Wed, 27 Aug 2008 23:23:24 +0000

i make 175k and hardly feel rich…in fact, i’ve never felt more middle class as i do today….$4.10 per gallon for my car, $4.50 for a gallon of milk…I go food shopping on Saturday, coupons in hand, and still spend $160 for my family of 5…I’m at the supermarket during the week for another $60….that, coupled with my housecleaner, pool guy, landscaper, son’s guitar teacher….on and on….

By: Jimmy

Jimmy — Wed, 27 Aug 2008 12:36:58 +0000

Terry,
Are you saying you deserve a house because you want one, no matter what your financial situation is? So if you make stupid financial choices and have children you can’t afford, a car you can’t afford, a TV you can’t afford, etc, the government should still give you house?

This country was supposedly founded on the idea that people are given the freedom to “Life, Liberty, and the pursuit of Happiness”. Happiness is not guaranteed, neither is a house.

By: JLP

JLP — Wed, 27 Aug 2008 12:25:53 +0000

Jimmy,

I have no opinion on the $47,500 income part of the article. I just found it interesting.