(Closed) What do you consider well off?

posted 6 years ago in The Lounge
Post # 17
Member
97 posts
Worker bee
  • Wedding: June 2016

Definitely depends on factors like student loans, location eTc. My household income was 130 last year but i have so many student loans it was killer. When i was in my early twenties and not paying loans, i made 45k and was living very comfortably and able to save 15k. It’s all dependent on the situation. 

Post # 18
Member
555 posts
Busy bee
  • Wedding: July 2020

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j_jaye:  +1 love this “Being well off to me is being debt free, having a secure job that has good work/life balance, having a comfortable buffer in emergency savings, living in a secure, safe and growing community and having a comfortable income that allows you to continue to save. “

Post # 19
Member
784 posts
Busy bee
  • Wedding: April 2016

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j_jaye:  Agreed! Our parents taught us that if we could not pay cash for it we did not need it. 

My brother and his wife live quite well off about $60k a year because he is the only one that works. Their home and one car is paid for. They did financemy SIL’s car but she needed something in a hurry, big and safe enough to haul 3 kids around in. 

Post # 20
Member
6401 posts
Bee Keeper

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hihothedairyo:  I think it’s very difficult to say based on salary, as it also depends where you live etc. For me, age doesn’t come into it either: you’re either well-off or you’re not. 

I would consider someone well-off if they could comfortably afford mortgage and bills on a reasonable sized property (3-4 bedrooms) in a good location (catchment area of good schools, good transport links, safe neighbourhood etc), could save a large amount each month (or invest in a second property etc), and could afford luxuries without having to really think about it/sacrifice anything. 

So, for where I live (just outside London), that would mean a combined income for a couple (no children) of around £200k ($300k), or for a couple with children, £250-300k ($375-450k). Other parts of the country you could have a similar lifestyle on a lot less; central London you’d need to be a multi-millionaire. 

Post # 21
Member
7976 posts
Bumble Beekeeper
  • Wedding: July 2013 - UK

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barbie86:  That can be achieved on MUCH less than 200K a year! We live very close (just outside London) and we could achieve all that on about 40K a year after tax, easily.

http://www.ifs.org.uk/wheredoyoufitin/

That quick quiz shows incomes against UK averages. To put that in perspective, I have two relatives who are absolutely loaded… between them they make about 120K a year. They have an eight bedroom house in one of the most expensive parts of the country, three cars, two planes (yep, you read that right), and three rental properties. But they’ve never earned anything near 200K… that would be the top tiny fraction of a % of earners.

A combined income of £1,100 a week puts you in the top 1% of the country’s most wealthy… that’s £57,200 after tax, for those bees who haven’t had their morning coffee yet!

EDIT: Just ran the figures. A couple without kids earning 200K a year, or one with kids earning 250K a year, both paying top rate council tax, are in the top 0.1%.

Post # 22
Member
2393 posts
Buzzing bee

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hihothedairyo:  My answer is the same regardless of age group — “well off” to me means having the financial resources to not have to work, unless you want to. That usually means a mortgage that is paid off and significant investments, etc. 

Post # 24
Member
542 posts
Busy bee
  • Wedding: December 2014 - Maui

What do I consider well off? Anyone richer than me. 

But seriously, average salary where I live is about $40K a year, so I’d say maybe double that is pretty well off.

Post # 25
Member
544 posts
Busy bee
  • Wedding: May 2015

Haha, there was a study that showed that pretty much everyone when asked this question named a number a little above there’s. A family that makes $60,000 would say a family that makes $75,000 is well off, and a family that makes $150k would say $200k. 

Post # 26
Member
5187 posts
Bee Keeper
  • Wedding: February 2013

20-30 anyone who can purchase a home and have kids with no debt.

Post # 27
Member
335 posts
Helper bee
  • Wedding: October 2013

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mrstob614:  +1

DH always jokes that he had more money leftover when he was making $40k a year in Socal (LA area) then he is now, making $110k a year (Maryland) with student loans. According to him, except for maybe housing, Maryland has a higher cost of living. 

I think being well of means no debt, having a retirement plan and savings, living comfortably, and being able to splurge every once in a while without blinking. 

Post # 28
Member
1083 posts
Bumble bee

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hihothedairyo:  I think region and family situation comes into play…things  are not always what they look….

my husband and I together make $150,000 a year.  Not including stock return or christmas bonus. I live in a small beach town, In A small beach town, that’s well off. we had over $60,000 in savings….we weren’t rich by any means but we had/have a brand new house, 2 new cars, and didn’t have to budget to go out to eat, shop, or go to the spa….we were saving for a boat.

but between student loans and his medical bills and my medical bills (we both almost died last year) and racked up over $100,000 on medical Bills (even with insurance), it ate our entire savings, and is sucking us dry every month….it will take us almost an entire year to catch up and stop suffocating in bills. It’s not just income; it’s region, debt, how many people live off the salary, situation ext….

Post # 29
Member
1066 posts
Bumble bee

I feel pretty well off for my age group (22), we’re a dual income household in the south making a combined 60-70k (and I’m hoping for a hefty raise here in a few weeks when I go permanent at my temp job). We have a beautiful 3 bedroom (rental) home, I only have a tiny amount of student debt that we’ll have paid off in a few months, good savings and a retirement plan started. I think a lot of it comes down to what life style you expect/grew up with though. My parents yearly income is about half of ours so I feel rich compared to them but FI’s parents make probably triple what we do and so he feels that we make just enough to live stress free but won’t feel ‘well off’ till we’re over six figures.

Post # 30
Member
9833 posts
Buzzing Beekeeper
  • Wedding: August 2012

Totally depends on the cost of living for the area and what you consider “well off”.

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