Post # 77
@housebee: I agree. I know many people who are well off, butwould not consider them wealthy.
One of FI’s friends/groomsmen I’d consider wealthy, or more so his parents. He has a 2+ million dollar home atop a cliff with an incredible view of the coastline, bought himself a boat, etc. His parents has a 14 million dollar home with an in home theater, gun range, etc… it’s insane! To top it off, they are the most humble of people.
Post # 78
this is something that i’ve been thinking about more as i get older, and closer to entering my career – very interesting responses.
my family is ‘wealthy’, my parents together make close to a million dollars a year in salary (i just broke out in a sweat writing that!) own a beautiful home and summer place, have put both my brother and i through 2 university degrees each, and entertain lots, travel etc.
BUT the biggest luxury was spending the entire summer every summer at our cottage. those times are the best memories i have, and it’s my favourite place on the planet 🙂
and my mother’s hilarious line when we were kids was “your dad and i have lots of money…you on the other hand are broke” 🙂 so then my brother and i had jobs from 13 on and paid our own way for non essentials.
@tcgstar: wealthy people don’t keep a million in the bank! that’s what investments are for! 🙂
Post # 79
In my opinion, “wealthy” is always going to be 20% more than you have. I really think that people’s perceptions of those who are well-off is based on where you yourself are sitting, and I think we are programmed to always want more.
If you’re working full time and living below the poverty level and can’t make your bills– I think you think that just having enough to pay your bills on time would be well off.
If you are working full time and you have enough to pay your bills on time and you live in a decent area but you have no savings, I think you think that having some left over for “fun money” and/or savings every month is well off.
If you’re working and living in a nice area and you are able to pay your bills, save for retirement, and save for emergencies— but you don’t have money to take nice vacations or buy clothes at regular price or whatever, you think people who can are well off.
If you’re working and living in a nice area, you’re making bills, putting money away, you can go shopping at the mall and buy new clothes at full price when needed, you have a newer car, you’re taking vacations, etc—- I think you think people who have all that and are just accummulating wealth and never have to budget are well off.
And those people? Those people think the people living in million dollar homes with stock portfolios are well off.
And those people? Think that unless you have a boat you’re not well off.
And so on.
I think a lot of people think we are wealthy because we have a relatively high combined income and we live in the midwest, we have a big house in a safe area and we drive nice (if not lavish) cars. We contribute to our retirement accounts, we have an emergency savings account, and we have a savings account to save up for things like new wood floors and vacations. But I don’t feel wealthy because I still have to budget how many trips to chipotle I make in a month. We still can’t take a nice vacation every year without cutting into other savings, we don’t have any investments, etc. I’m grateful for the stability that we have and knowing that when a car breaks down its not a really big deal— but I think we’re just programmed to never feel that we personally have “gotten there” in terms of wealth.
Post # 80
@Nona99: haha amazing! my SO’s parents bought a boat (small yacht?) a few years ago, and i remember the first time we went on it overnight i was asking where we’d sleep and almost died when my SO said ‘we’ll take the back bedroom’. ohh….riiiiight.
Post # 81
- Wedding: October 2011 - Bed & Breakfast
@adoc86: I just bookmarked that b&b. It looks so lovely.
You’re in the clear. I promise. 🙂
So true. I remember when I was just starting out, and making the amount that I make now seemed like I would be rolling in it. Now I’m here, and I paid more in income taxes this year than I actually earned in the first year of my career. And I’m definitely not rolling in it. LOL
Post # 82
I haven’t read all the posts but I’d like to point out there are probably very few people who don’t worry/think about money. Even millionaires worry about money. Maybe even more so than midle income people. Really the only people I can think of who would maybe not think about money are people that were born into families that have been in the top 0.01% for their whole lives.
I also don’t correlate “wealthy” with spending money on expensive things. I could afford to buy Manolos but I don’t because expensive shoes just aren’t that important to me. And I like to save. Everybody has priorities.
Post # 83
I’m another person voting for being able to afford things I want (beyond need) and not having it affect my savings. For me, this mainly means travel. Basically, wealthy beyond my meager dreams would look like this…
> Comfortable sized house (3-4 BR) in a nice neighborhood with tree lined streets within walking distance to things to do and with a small yard that fits an outdoor dinner table and a vegetable garden and with a decked out home gym;
> The ability for me to stay at home with the kids or to just work part time if there are no kids;
> An AWESOME summer vacation every year lasting up to two weeks;
> Monthly weekend trips;
> Organic food and farmer’s market shopping and natural products;
> Six months’ cost of living sitting safely in the bank just in case plus fully-funded college savings account for each kid;
> Retirement account that will allow us to continue living in this style once he decides he’s had his fill of teaching.
Ah to dream…
Post # 84
To me, wealthy applies to anyone that doesn’t need to use a calculator at the supermarket. My husband and I are on average incomes but I consider us wealthy because I just feel so lucky. But in the spirit of the question, I look at anyone who has made it to 6 figure incomes and go “wow” 🙂
Post # 85
Wealthy is when you’re money makes money. Like another poster said, it’s not about how much you spend. Wealth is different from rich. Wealth is passed from generation to generation. When your great-great-great grandkids won’t have to work, that is wealth. Basketball players are rich, the man who signs their checks is wealthy.
Post # 87
@lovekiss: I’m going to walk out of college with minimal debt, but that’s because I worked my butt off for scholarships/financial need that school provides. My parents know I worked hard and they’re covering what else is left over, which is abou 10K a semester (thanks to housing in the city D: ) But that is 1/3 of the cost of the entire school. I mean, theres a happy compromise, let them go to school with extensive scholarship and show them what its like to work for it before college. I’m also graduating early, instead of four years I’m doing 3.5. I think it’s about balance but I go to a really intense art school, I don’t know a single person who is on a five or six year plan, other than the kids that are getting dual degrees. :/
Post # 88
I think wealthy means u can spend money on anything u want without the second thought and there are constant incomes flowing to u. We live in los angeles and the living costs are higher comparing to most places. I will consider my sister rich but not wealthy. She has 2mills in cash and some real estate properties paid off and everything else is paid off but they live very frugal. They drive old truck and have so many old junks at their home. They dont even have flat screen tv but my ss can buy anything she wants without thinking abt money. Well then i consider my mom well off cus her 400k house is paid off and she has 2g of fixed income monthly and her expenses are less than 500$ a month. Both of them dont consider themselves as rich or anything. We think they r rich.
Our situation is diff. We only have one fixed income of my hubby who makes 70k with 2 lil boys. I do real estate investment with my fam but we r far from ehat they have in assets. we saved but the same time we want to enjoy life by getting whatver we want once in a while. Everyone frm dhs wrk think that we r rich but not even.but we r happy with what we have ,of course we want to be financially worriesfree. We r getting our second home and we put 15% into 401k monthly and can save50% to our savings but the most important things r as long as my kids r healthy, no stress and being together with my kids and husbandand dont constantly have to worry abt $ and being able to take my kids to vacations and have good amount of savins which means over 6 figures. i just want to live happy with no worries then we feel wealthy..
Post # 89
@figgnewton: This. Also I have fairly low aspirations. I’d consider myself wealthy if I had no more student debt and could buy most of what I wanted. I think I’d be more than satisfied at 80k household income. Combined, FH and I make probably half that and have massive loans.
Post # 90
Mr TTR and I are in our 50s and 60s. I think being wealthy means different things to different people… and how old you are.
When I was younger I thought making $ 100 K was a lot of money… not so much anymore (lol, then again when I started working after Uni in 1980, I made $ 15 K a year, and so did my Hubby-2B. At $ 30 K we were doing well)
Today, nearing retirement I don’t think that having $ 1 Million in Investments & Property is very much money…
Not when you have to consider, the fact that people live longer… and many into their 80s and 90s (if not beyond)… and that money therefore has to provide for you for 30 or 40 years.
Moreso, when you realize that living with some assistance (ie a Seniors Home / Retirement Residence) can cost $ 4000 a month per person … someone who needs more care, would be looking at even more $ 5000 to $ 8000 per month
That can make one’s money dissappear quickly !!
NOW, Being well off in a position where I wouldn’t have to worry about money would be having $ 2 Million or more in Investments & Property… $ 3, $ 4, $ 5 Million even better (definitely wealthy)
Lol, the reality is… that most of us will never make or save the type of money we need to be considered wealthy (despite our best efforts)
Hope this helps,
Post # 91
TO @HisMoon: this was my definition of wealth & success too…
I have to said, I managed to get it all… BUT the last item. Retirement Savings aren’t what I hoped for (planned for). And that sucks. (Don’t hold your breath on any realistic Pension coming down the pipe in the future).
But in the long run Mr TTR and I are very blessed, and have a good life.
And that is all that matters.