- 6 years ago
- Wedding: October 2014
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.
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.
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.
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%.
Anyone who is interested can view the data for the US as well… this compares the incomes of the top 1% and top 0.1%, broken down by age: http://www.theatlantic.com/business/archive/2014/10/the-top-1-percentand-01-percentof-every-age-group-in-america/382094/
135K a year puts under 31s in the top 1%.
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.
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.
20-30 anyone who can purchase a home and have kids with no debt.
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.
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….
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.
Totally depends on the cost of living for the area and what you consider “well off”.
The topic ‘What do you consider well off?’ is closed to new replies.