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.
I don't look at percent numbers with 'rich'. Because rich is a functional state. We could all be rich or not.
Personal and long term experience is why I put my numbers where they are.
I agree that if you make $300K per year you are well off enough. But you will not be rich in ten years unless you stay single and live a moderate or less lifestyle. Perfectly OK for many I would think, and much better than most.
But start a family and there will be expenses and more obligations along the way.
Maybe in 30 years if you make mostly the right financial decisions and remain lucky enough with choices and timing. The simple serendipity of timing can have a huge impact on where you are financially down the long road. Mine was all excellent as I functionally entered the quest in 1982. I was not rich in 1992. And in those 10 years about any idiot with the means and simple professional guidance did well in the stock markets.
Someone starting in the late '90's might not have been as fortunate after 10 years.
So numbers don't matter. Gotcha. There are millions of people with families, loans, houses, cars, etc that do not make 300k. They somehow manage to save money and retire, but according to you, making 300k a year for 10 years would not net you enough to be considered rich. Unless you are a dolt, it should. Family or no family. I make less than a 1/3rd of that amount, and manage to save money every year with a wife who is currently out of work on disability (unpaid at the moment), and a 3 year old. You are honestly telling me that someone making 300k couldn't do the same on a much larger scale? Puhlease.
So having all those nice things accounts for nothing? That nice, huge estate and brand new luxury cars. Those expensive vacations. They all mean nothing. Gotcha.....
I mean, what is the point in buying things. It only matters what you DON'T spend apparently.
That huge estate and brand new luxury cars are called debt, debt doesn't make you rich.
So numbers don't matter. Gotcha. There are millions of people with families, loans, houses, cars, etc that do not make 300k. They somehow manage to save money and retire, but according to you, making 300k a year for 10 years would not net you enough to be considered rich. Unless you are a dolt, it should. Family or no family. I make less than a 1/3rd of that amount, and manage to save money every year with a wife who is currently out of work on disability (unpaid at the moment), and a 3 year old. You are honestly telling me that someone making 300k couldn't do the same on a much larger scale? Puhlease.
So, is it your contention that everyone making $300k is financially responsible and/or never has really bad luck in the form of things like medical issues?
Rick is single and makes $80k a year. He rents a room in a house with 3 other guys, walks to work and spends all of his time off of work playing Grand Theft Auto and eating Ramen noodles. He puts $30k a year in savings.
Dan is married with five kids and a wife with MS, but he makes $300k a year. He rents a house so he doesn't have to worry about any out of pockets costs for a replacement AC unit or to replace the roof. Due to all of his out of pocket costs, he can only save $1,000 a year.
After 10 years, and Rick has $300k in net worth and Dan has $10k in net worth, would you consider either one of them rich? If so, which one?
At that point, they both are. The second guy also falls in that "extenuating circumstances" category. If you have followed the thread, I have said ,"barring extenuating circumstances."
Even with 5 kids and a wife with MS, 300k would still allow you to put back more than $1,000 a year, assuming the guy has insurance. If he doesn't he falls in that "dolt" category. Are you honestly saying that you think in 10 years, that someone making 300k/yr (That is $3,000,000 in 10 years) could only put back 1k/yr?
You can keep changing the goal posts all you want, but my answer will remain the same.
That huge estate and brand new luxury cars are called debt, debt doesn't make you rich.
The very fact that you can take on that much debt does however. Could someone making 60k take on the same amount of debt? I think not. The ability to spend up to 300k a year makes you rich.
So, is it your contention that everyone making $300k is financially responsible and/or never has really bad luck in the form of things like medical issues?
Of course not. People in all categories are going to be stupid with money, that is just statistics. People in all categories are also going to run into health issues or any number of other things too. Doesn't change the fact that 300/yr makes you rich.
The very fact that you can take on that much debt does however. Could someone making 60k take on the same amount of debt? I think not. The ability to spend up to 300k a year makes you rich.
Nope it might make you think you are rich but you are not unless you manage that money over the years and build wealth, money in the bank, equity, retirement and such.
Doesn't change the fact that 300/yr makes you rich.
Other than the fact that is doesn't.
Making $300k a year puts most people in a position where they have the ability to eventually become rich, but making $300k doesn't automatically make you rich.
I've actually known people who spend beyond their means and put on a facade of being rich. I always wondered, "Who are you trying to fool?" Now I know.
So numbers don't matter. Gotcha. There are millions of people with families, loans, houses, cars, etc that do not make 300k. They somehow manage to save money and retire, but according to you, making 300k a year for 10 years would not net you enough to be considered rich. Unless you are a dolt, it should. Family or no family. I make less than a 1/3rd of that amount, and manage to save money every year with a wife who is currently out of work on disability (unpaid at the moment), and a 3 year old. You are honestly telling me that someone making 300k couldn't do the same on a much larger scale? Puhlease.
In tens years time you might bank $1M if you are lucky enough with timing and investing. But with family and kids and home, there are expenses out the yin-yang, and net worth will be well below $1M. With the rest of you and yours life ahead of them, you are not yet rich, but well to do by my definition. IMO rich means no longer needing to work to earn a living. Well to do is better than most.
Nope it might make you think you are rich but you are not unless you manage that money over the years and build wealth, money in the bank, equity, retirement and such.
Being "rich" and being "wealthy" are two different things. The accumulation of wealth makes you wealthy. Wealth is the future, rich is the present. I read an article not too long ago, and I will try to find it when I get a chance, that talked about this very thing. Rich is what you are making, while wealth is what you are accumulating.
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.
The second guy also falls in that "extenuating circumstances" category. If you have followed the thread, I have said ,"barring extenuating circumstances."