Do you consider a family that makes >$100,000 wealthy?

[indygirl99]

HBO, Ruth's Crist and a new stylish cut doesn't define wealth. We've made far less than $100k and with luck and hard work - far more. And I can say $100k is far from wealthy.

Sure, a >$100k earner has more disposable income than a $30k earner but more doesn't equal wealth.

I drive a 2004 truck and really want a new Ford F-150. I'm really struggling with getting into a new payment (which would be minimal, in all honestly). A "wealthy" person wouldn't have this internal discussion, IMO.

No a "wealthy" person is happy with their 2004 truck and doesn't need a new Ford F-150.

That is why they are wealthy.

 

[IDoDis]

I don't even know what is typical for home owners. Ours is 1,000 for the year.

I wish. Ours is about 8 times that right now.

It depends on the replacement cost of your home. We had a policy that jumped from $800 to $1000 to $1250 by the 3rd year renewal. I shopped around online and made some phone calls and got a rate with the same coverage for $720. Last year it went up to $850, so we will probably switch again right before the renewal when the money gets taken out of escrow in December because I'm sure there will be another rate increase.

Kenny1113, can't you shop nationally? With everything online now, you don't have to use local companies.

 

[Kenny1113]

It depends on the replacement cost of your home. We had a policy that jumped from $800 to $1000 to $1250 by the 3rd year renewal. I shopped around online and made some phone calls and got a rate with the same coverage for $720. Last year it went up to $850, so we will probably switch again right before the renewal when the money gets taken out of escrow in December because I'm sure there will be another rate increase.

Kenny1113, can't you shop nationally? With everything online now, you don't have to use local companies.

Unfortunately, no one will cover in Florida (or at least my area). When I initially purchased a home and wanted homeowners ins I called a national company that I also had car ins through, they literally laughed at me.
This is not isolated to just me, the residents of my area are going through the same issues.
We have an agent working with us who is constantly trying to get us the best rate. Ins companies want new roofs on all the houses. We had a company refuse to insure us because the roof is over 10 years old, despite the fact that the inspection said we still have 5-7 years left on the roof- and it's perfectly fine, no leaks or loose areas.

 

[tvguy]

No a "wealthy" person is happy with their 2004 truck and doesn't need a new Ford F-150.

That is why they are wealthy.

Sam Walton had a 13 year old Ford F-150 when he died. He was making $90 million a year, and had a net worth of $23 billion.
The truck is on display at the Walmart visitors center with the following quote
"I still can’t believe it was news that I get my hair cut at the barbershop. Where else would I get it cut? Why do I drive a pickup truck? What am I supposed to haul my dogs around in, a Rolls-Royce?"

 

[JoeA]

Sam Walton had a 13 year old Ford F-150 when he died. He was making $90 million a year, and had a net worth of $23 billion.
The truck is on display at the Walmart visitors center with the following quote
"I still can’t believe it was news that I get my hair cut at the barbershop. Where else would I get it cut? Why do I drive a pickup truck? What am I supposed to haul my dogs around in, a Rolls-Royce?"

He also had a private jet. Let's not get too hung up on his old truck.

 

[tvguy]

He also had a private jet. Let's not get too hung up on his old truck.

I think if you will do a little research you find that there was just one Walmart Corporate jet in Sam's life time, purchased over his objections by his son just before Sam died. Sam never flew on it. Yes, Sam was a pilot, and yes the company owned 17 small turbo props at the time of his death, but Sam preferred to fly commercial and coach to boot. And he made employees turn over frequent flyer miles earned on company business to the company.

 

[JoeA]

I think if you will do a little research you find that there was just one Walmart Corporate jet in Sam's life time, purchased over his objections by his son just before Sam died. Sam never flew on it. Yes, Sam was a pilot, and yes the company owned 17 small turbo props at the time of his death, but Sam preferred to fly commercial and coach to boot. And he made employees turn over frequent flyer miles earned on company business to the company.

I'm too tired and frankly don't care enough to do more research but that's pretty cool...and unique. But driving a truck and flying coach didn't make him wealthy!

 

[tvguy]

I'm too tired and frankly don't care enough to do more research but that's pretty cool...and unique. But driving a truck and flying coach didn't make him wealthy!

LOL. No. But he could have kicked things up a notch without impacting his bank account. But, after I bought both my kids Tauruses, I pointed out they were driving the car model that more millionaires drove than any other car model.

 

[JoeA]

LOL. No. But he could have kicked things up a notch without impacting his bank account. But, after I bought both my kids Tauruses, I pointed out they were driving the car model that more millionaires drove than any other car model.

He could have kicked it up more than a few notches and not worried about paying bills!

 

[barkley]

COL definitely effects housing. I pay around $11,000 a year on my 1800 ft house. Services are also more expensive - daycare, landscaping, construction, preschools - because people need to be paid more. Even restaurants and bars.

I remember a trip to Chicago where I was stunned to pay WAY more at McDonalds than I paid at home. Always assumed the prices were universal. Nope!

Our home is 15 years old, 1,480 sq*ft, sitting on 7.4 acres. Our mortgage payment is about $640, taxes & insurance are about $3,000 for the year (total, not each).

I think this is where it gets VERY telling on how much cost of living can be wildly different from region to region (granted-insurance rates can differ b/c of personal insurance history and type of coverage). I think it would be interesting if people are willing to offer up the information-

1. if you rent-how much is rent (or what's going rate in your area for an apartment or home)?
2. if you own-age of home, how many sq ft/lot size-how much are property taxes and homeowners insurance?


so-i'll start

1. do not rent but a 4 bedroom/3 1/2 bath townhouse can be gotten for $1400 per month in the college town near us (and that's considered on the higher end b/c it's newer, comes w/garage, washer/dryer and in easy walking distance to the college).

2. 9 yr old home, just shy of 2400 sq ft/10 acres-combined, property taxes and homeowner's insurance run $3298 per year.

 

[mnrose]

I'll add mine.

(1) Not a renter, but I am a landlord. I rent a 3BR2BA home for $1150 per month (8 year old home). It is about 1500 square feet, and 1/4 acre lot. It is a "split" with the lower level unfinished, 3 car garage. It is slightly below market...as I don't raise rent on existing tenants who are good tenants unless my costs increase dramatically. About 40 min from downtown Mpls. In Marin County, CA, I also own a rental home. It is 2400 square feet, 4BR 3BA on a 1/4 acre lot. Rent is 3850 per month.

(2) My own home (principal residence) is 4600 square feet, 6 car garage. 15 year old home. Homeowners is around $2000 per year, and property taxes around $6000 per year.

 

[Colleen27]

I'll play too.

1. We own, but the 1000-ish sq ft 3 bed/1.5 ba ranch on a standard city lot down the street from us rents for $750. A 1 bedroom apt in a complex in my town can be had for $400/mo.

2. Our home was built in 1880 and is a 2000 sq ft, 4 bd/2bath on 1/4 acre in a prime location within our town. Taxes are $1000/year but homeowners is absurd because cost of replacement attempts to account for a lot of irreplaceable features like ornate woodwork and hand-carved panels above the pocket doors as well as things you wouldn't do when rebuilding like plaster walls rather than drywall. We're currently paying $2800/yr for our policy.

 

[nugov2]

1. We own but rental is 1,400 a month for 900 sq feet from what I see.


2. We own. We put 100,000 down on our house and pay 1,900 a month in mortgage 1,000 a month in taxes and 84 a month in home owners insurance. We have a 3bed 3 bath 3,000 sq ft home with a basement that is another 2,500 sq ft. Our lot is 1/4 of an acre. Our house was built in 2007.

 

[tvguy]

He could have kicked it up more than a few notches and not worried about paying bills!

I just looked carefully at the pictures, he didn't even pop for an automatic transmission!

 

[tvguy]

I think this is where it gets VERY telling on how much cost of living can be wildly different from region to region (granted-insurance rates can differ b/c of personal insurance history and type of coverage). I think it would be interesting if people are willing to offer up the information-

1. if you rent-how much is rent (or what's going rate in your area for an apartment or home)?
2. if you own-age of home, how many sq ft/lot size-how much are property taxes and homeowners insurance?

1) Exact same floor plan down the street is renting for $1,600
2) My house is 2,000 square feet. Lot is .17 acre (7.750 square feet). Property taxes are $2,100, Homeowners is $1,000.

Around here, rents are high, IMHO. DS and his fiancee are trying to make some life decisions about where they want to live before buying because the condo they are renting right now........if they bought it, the payment would be half what rent is. Of course, they need a $10,000 down payment to buy.

 

[IDoDis]

1800sf 16 yr old home
property tax is $2330/yr
Insurance is $850/yr

 

[Julia M]

If I lived in a third world country, I'd think a family making $40,000 a year wealthy. In San Francisco, making $100k a year means you could probably live in the city instead of commuting.

Context is everything.

At 100K a year in CA, your take home pay (for a single person) is 67,632.01. That's 5,636.00 per month. As of May 2015, average apartment rent within 10 miles of San Francisco, CA is $3803. One bedroom apartments in San Francisco rent for $3213 a month on average and two bedroom apartment rents average $4385. So, if you're single, you can make it work, but if you add in a car payment, student loans, utility bills, etc........100K doesn't go too far.

 

[FlightlessDuck]

At 100K a year in CA, your take home pay (for a single person) is 67,632.01. That's 5,636.00 per month. As of May 2015, average apartment rent within 10 miles of San Francisco, CA is $3803. One bedroom apartments in San Francisco rent for $3213 a month on average and two bedroom apartment rents average $4385. So, if you're single, you can make it work, but if you add in a car payment, student loans, utility bills, etc........100K doesn't go too far.

Actually, yeah, I think I mean to say "probably commuting instead of living on the city"

 

[ronandannette]

I think this is where it gets VERY telling on how much cost of living can be wildly different from region to region (granted-insurance rates can differ b/c of personal insurance history and type of coverage). I think it would be interesting if people are willing to offer up the information-


1. if you rent-how much is rent (or what's going rate in your area for an apartment or home)?
2. if you own-age of home, how many sq ft/lot size-how much are property taxes and homeowners insurance?


so-i'll start

1. do not rent but a 4 bedroom/3 1/2 bath townhouse can be gotten for $1400 per month in the college town near us (and that's considered on the higher end b/c it's newer, comes w/garage, washer/dryer and in easy walking distance to the college).

2. 9 yr old home, just shy of 2400 sq ft/10 acres-combined, property taxes and homeowner's insurance run $3298 per year.

1. We moved last year from a rented condo (+/- 1,300 sq.ft.) in which we had lived for 4 years. Our rent was $1,595 (based on annual increases from our original lease) but the place rented immediately for $1,800 after we gave our notice. Vacancy rates here for rentals are quite low and prices relatively high - a 2 bedroom highrise apartment is around $1,200 and a 2,000 sq.ft. house in a suburban location is around $2,000.
2. We purchased and reno'd a pricey, 30 y.o., 1,400 sq.ft. condo in an extremely desirable mid-town neighbourhood. Our property taxes are $2,650/year, our condo fees, which include protection for the common areas and liability insurance are $320/mo. Our personal property/contents insurance runs $800/year.

Oh, and as to the original question - 100 K is not wealthy. And the difference in lifestyle between either 90 K or 110 K from 100 (10% in either direction) is minimal. This is the one thing that has surprised me most as my income has gradually increased over the years.

 

[disneylovinfamilyof6]

We make a lot more than 100k a year and trust me, we are not even close to wealthy. Uncle Sam takes 40%. Maintaining a large home and yard is ridiculously expensive - something is always going wrong, needing repair, needing replacement, etc. Then with 6 kids and their many activities I am forever writing checks and paying for this and that online for school/extracurriculars. Add in my Disney travel addiction and we are broke. Lol. (Not really), Sadly 100k is not much anymore. Our family couldn't afford to live the way we do if that was our income. We would have to downsize, sell our home, and change our lifestyle quite a bit if our income was reduced to that amount.

And I agree with a PP that said they felt like they had more money when they made less. I thought I was rich when I first made 36k a year. LOL. I got a mani/pedi and car wash bi-weekly back then. I don't have the time or money to do either of those now.