Post # 1
- Wedding: October 2011 - Bed & Breakfast
Is it a dollar amount in savings and other assets? Is it a certain annual income? A way of thinking? Being able to spend freely without a care? What does the term “wealthy” mean to you?
This was sparked by the President’s new budget proposal, which would cap a person’s tax-free retirement account savings at a certain amount. The cap is meant to target “wealthy” individuals. Well Mr. LK and I have been working with a financial planner and have certain retirement savings goals that would make us one of these “wealthy” people. And I’ve never thought of us as “wealthy.” We are savers and planners, for sure. We don’t take vacations, we don’t buy on credit, we shop at Target for clothes when we absolutely must, etc. Basically, we live below our means in order to save money for our future. I don’t think that sacraficing now in order to pay our bills in the future makes us “wealthy.” It just makes us prepared.
To me, “wealthy” is being able to buy a pair of Manolos in cash without thinking about how you really needed that money to pay for your kid’s college or replacing the water heater or whatever. Or deciding that you’re taking a trip to the Outer Banks in July and renting a tricked out, ocean front, 10 bedroom house without blinking. “Wealthy,” to me, means having money to blow on the nicer things in life without it impacting your financial stability.
But everyone is different, so I thought I’d ask out of curiosity.
Post # 3
@lovekiss: I make like 22k a year so wealthy to me is 100+. lol To some that might be really low but in my eyes your doing great even making 80k!
Post # 4
I’m with you, being wealthy is being able to buy whatever you want and not worrying about it.
Not talking about yachts and three houses but just being able to go out to dinner whenever you want, buy new furniture or cars when you need them.
Post # 5
having money in the bank (over 1 million) and still accumulating cash and owning other assets. I know a lot of people who make over $100,000 a year and are still broke.
Post # 6
Wealthy to me would be like making 500k a year, with lots of non-retirement investing.
Post # 7
@lovekiss: “Wealthy,” to me, means having money to blow on the nicer things in life without it impacting your financial stability.
I agree with this. When I can go blow money on every little need and want somewhat extravagant without effecting my retirement plans, then that is wealthy to me.
Post # 8
The average income for a family of four in the US is 50K, so I consider anything double that to be wealthy.
Post # 9
Wealthy to me is the top 1%, my mom is well off (i.e. she bought a sapphire ring the because it matched her outfit that day), but she’s far from wealthy. I’d consider her upper middle class maybe?
Post # 10
1-3 mm in liquid assets? I think of wealthy people as those who can gift wealth to their children and have to do complicated estate planning.
Post # 11
what you describe is a profligate spending. Buying Manolos and being wealthy is not necessarily the same thing – you could be frugal and wealthy. The proposal you mention caps tax free retirement accounts at 3 million per person (in IRAs and 401ks, not counting other investments and property). If you and your husband have or will be close to having 6 million in retirement savings between the two of you then I’d say yes, it’s wealthy, and shopping in Target is simply irrelevant. (BTW props to you for being such good earners and savers).
Post # 12
I like the idea of being able to blow money on the nicer things in life and not have it affect savings, retirement, bills, etc.
I used to think that anything over 100K was wealthy. Then I moved to Washington, DC. Between FI and I, we’ll make over 250K and we can’t afford to buy a single family house (they start around 700K). the cost of living here is just outrageous so ealthy has taken on a new meaning for me. We are certainly comfortable, we are probably well off, but I wouldn’t call us wealthy
Post # 13
Wealthy to me would be someone who is able to afford a home, car, utilities, food, kids and activities without having to stress. I have no idea what that feels like. Sadly I make under $35k a year and my FI makes less. We are living at home right now, and when we move we will probably just be able to afford the bare necessities. 200K a year would probably seem wealthy to me.
Post # 14
What an interesting question!
When I was in my 20’s I would have considered the level of income, savings, assets and retirement investments my husband and I have now, as wealthy.
We both have our health, a beautiful home we enjoy, our sons are each being educated at good colleges. Both of us have excellent retirement and health insurance benefits at work. We’re lacking for nothing.
We take plenty of vacations – because sharing special times together alone is very important to us. We decided to spend our wedding anniversary at the same place as our honeymoon – a week in the same beach house – and have already reserved it and put down the deposit. It will be a second honeymoon on our first wedding anniversary.
But – most of all, I have him. That makes me the wealthiest woman on the planet, as far as I’m concerned. 😉
Post # 15
Being able to live off of passive income while not having to be frugal. I put rich above wealthy, and rich would be living an extravagent lifestyle off of passive income, or at least the ability to do so.
Post # 16
Depends on where you live, I live in NYC where a million dollars wouldn’t get you very far 😉
Buuut, I’m moving to Dallas come graduation, and Texas has a super low cost of living, where my SO and I as teachers should live very comfortably, but still not wealthy, after all we will be teachers.
I think wealthy has nothing to do with your shopping habits, rich people are often the stingiest, but if they COULD run off and get a pair of Louboutin’s without thinking, well then maybe. I go to school with incredibly wealthy kids, so to me anyone who is paying full tuition (60k+ a year) is wealthy.