Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
rich = enough assets to maintain a middle class lifestyle out of passive income
upper-middle = high income, not rich
middle = moderate income, not rich
Income does not determine class status, net worth does. I know people who make considerably less money yet have higher net worths than some others with much higher incomes.
If you make $120K but are heavily in debt with a big mortgage, too big car payments and high credit card and/or student loan debts, and have a negative net worth, what does it matter what your income is?
What does net worth mean?
I've heard it doesn't include your home that you own, your IRA, investments or any other assets, just cash available that you have. I really don't know.
Umm no haha only a poor person would consider just cash in the bank. That would ignore the vast majority of most wealthy peoples’ net worths. I’m fine not including your house if it makes someone feel better but it IS part of your net worth. There’s no actual argument about the definition of net worth. It’s assets minus liabilities. Everything you own is counted no matter what it is. Anyone who invests in real estate has tons of non-liquid assets but they still absolutely count. If someone asks, “How much money do you have that you could invest right now in my new business?” That’s a different question. Then they're just asking about liquid available funds, which most people with money wouldn’t keep much of.
if these numbers are not buying a "middle class lifestyle " for us where each of us live, they mean nothing .....middle class income and middle class lifestyle don't mean the same thing .
if these numbers are not buying a "middle class lifestyle " for us where each of us live, they mean nothing .....middle class income and middle class lifestyle don't mean the same thing .
I agree with your comment.
OTOH, the person I replied to did not add the required nuance to his comment.
I've heard it doesn't include your home that you own, your IRA, investments or any other assets, just cash available that you have. I really don't know.
LOL! No, that would be how "liquid" you are. Net worth is the difference between assets and liabilities.
"An individual's net worth is simply the value that is left after subtracting liabilities from assets. Examples of liabilities (debt) include mortgages, credit card balances, student loans, car loans, etc. An individual's assets include checking and savings account balances, value of securities such as stocks or bonds, home value, market value of an automobile, etc. In other words, whatever is left after selling all assets and paying off personal debt is the net worth. Note that the value of personal net worth includes the current market value of assets and the current debt costs."
I've heard it doesn't include your home that you own, your IRA, investments or any other assets, just cash available that you have. I really don't know.
Net worth is assets minus liabilities.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
