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

[AlohaNow]

This is a really interesting discussion. I consider ‘wealth’ to be getting paid by investments only and not having to work. Being ‘rich’ is a step somewhere down from that, where you are actually working for your income. $100K a year is nowhere near either.

Since things aren’t working out financially for us right now, DH and I just made it our goal to have a six-figure income for our household once again. We both have other work experience that we can fall back on and make more money, and we are at the point that that is what has to happen. He will chuckle if I go home and tell him that once we reach our goal we will be ‘wealthy’!

 

[bcla]

This is a really interesting discussion. I consider ‘wealth’ to be getting paid by investments only and not having to work. Being ‘rich’ is a step somewhere down from that, where you are actually working for your income. $100K a year is nowhere near either.

Since things aren’t working out financially for us right now, DH and I just made it our goal to have a six-figure income for our household once again. We both have other work experience that we can fall back on and make more money, and we are at the point that that is what has to happen. He will chuckle if I go home and tell him that once we reach our goal we will be ‘wealthy’!

It depends though. Some high-level executives with 7-figure salaries and vested stock options (not specifically "investments") are among those who I would consider wealthy. They certainly work, but if judicious with spending they don't have to work for the rest of their lives. I know if I came across a lot of money, I wouldn't go around spending it on luxuries. I'd try to have it support me for life. Maybe a new car, but one that's reasonably priced and reliable. And I'd repair all the stuff in my house that I've been putting off for years. Sure I might go on vacation more often if I didn't have to work, but I wouldn't go for the most expensive hotels, although my wife might. Of course a lot of this is dependent on how well getting income from investments works. I still wouldn't go for any fancy cars. I used to dream of having a stable of exotic sports cars when I was a kid, but these days I'm kind of happy with a decent car with average fuel economy.

I can look at someone like Warren Buffett, who apparently still lives in the same 4-br house he bought in the early 70s and drives a Toyota Camry himself. I've even heard that he doesn't have any bodyguards. I know kidnapping someone high-profile is probably pointless these days, but that might not stop someone stupid enough to try it.

 

[Carrie_Cat]

Net or Gross ? Either way it is totally out of proportion to salaries here in France so to us it sounds like a lot

In 2012 Median income (salary) net was about 25 507 euros so 28,637.44 USD

It won't have gone up much since as inflation is so low

 

[HeatherC]

Another thing to consider with income is that for most people I think the more they make the more they spend.
So if you are making a nice salary, you (in general) are probably driving a more expensive car, taking more vacations, larger home with more expenses, etc..

 

[lovin'fl]

It's not a bad income but far from wealthy. Cost of living and spending habits (no more 1 car, 1 TV families), well, $100K (then take taxes out) it just doesn't go far. But you wouldn't be starving or homeless. And something that makes me want to go 'off the grid' is that every aspect nowadays has added fees/costs. Nothing is included anymore and everything we do costs $$$ (from checking bags on a flight to having faster internet speed).

 

[bcla]

Another thing to consider with income is that for most people I think the more they make the more they spend.
So if you are making a nice salary, you (in general) are probably driving a more expensive car, taking more vacations, larger home with more expenses, etc..

Location, location, location.

Over a week ago someone was asking on the California/West board about housing in certain parts of the San Francisco Bay Area - close to a workplace in Marin County. The poster probably researched prices there that seemed to be reasonable compared to the stratospheric prices in other parts of the region. We then noted that these areas and neighborhoods were probably ones with high violent crime rates.

You know - I'm sort of thinking that if I really HAD TO, I could probably cash out my primary home for equity, keep my rental home for income, move to Arizona, get a reasonable job even if the pay isn't so great in absolute numbers, and live pretty well. However, I'd probably miss the great weather and job opportunities may not be so great.

 

[cleverclovers]

Compared to the vast majority of American families, yes, $100k/year is wealthy.

I'd be happy with it!

 

[Handbag Lady]

No, it is not. We make over that and can't afford a home that is within an hour's drive from our work. (And I refuse to live in some places that we can afford because I fear for my safety.)

 

[3 MEN AND A BOAT]

I still say it is. It's not Uber rich where you don't even think about cost but those people are rare. Location is key, but for the majority of the U.S. If you can't put away a substantial part of 100k, you've got spending problems.

 

[JoeA]

It's laughable that anyone would think 100k isn't wealthy. The people that I know who are genuinely not wealthy would laugh at what a 100k earner would consider a "necessary purchase"... Hint: your cable, dinners out, and $200 haircut ain't it.

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.

 

[xlxo]

I live in the most expensive city in Canada (and probably North America), Vancouver BC. OK technically I live 40 minutes east of downtown, out in the suburbs. But still. The average price of a home in Vancouver is approx $800,000CDN. $100,000 is NOT wealthy here. We make a little less than $100K (because I'm a SAHM) so if (when)I went back to work we'd be over the $100K mark. Still not wealthy. Just a bit more comfortable than we are now. We're comfortable now but our kids are young and we need to put more money towards their education funds and one of cars is about to die so since I will have 2 kids in school full time in September it's time for me to bring some $ back in the house ;-) But I digress....

Some thoughts for those coming through Vancouver on their way to Alaska.... Today's exchange rate close is 0.7634

• in recent news, average rent in downtown Vancouver is $2000 or about US$1500
  http://globalnews.ca/news/2136921/vancouver-faces-growing-rental-crisis/
• detached housing in Vancouver is over $1,000,000 or about US$764,000. Much of that is actually the land and not the structure itself.
• a US$100,000 salary is about CAN$131000. About double what a Vancouverite makes. Or a good dual income.
• if a BC public sector worker makes an excess of CAN$70k (US$54k), your salary and name is published annually in the media as earning shamefully too much.
• Vancouverites are paid unlimited mountains and water (perhaps not this year).
• what your salary needs to be to quality for low-income housing...
  http://www.bchousing.org/Options/Subsidized_Housing/Apply/Eligibility/Income_requirements

 

[DLgal]

It's not wealthy, but it's definitely well off. Americans think they "need" too much.

Guess what? You don't NEED to own a house. The ability to buy a house does not define how well off one is financially. We will NEVER buy a house where we live. They are all part of an overpriced bubble market. We have been happy renters for over 15 years. Our rent is sky high but we don't have a $800000 mortgage debt or $15k annual property tax bill either. We love where we live and will stay here as long as we can continue to afford it. We make just over $100k net, single income, and we are living very comfortably in one of the highest COL counties in the country. No desire to buy a house.

 

[morgan98]

It's not wealthy, but it's definitely well off. Americans think they "need" too much.

Guess what? You don't NEED to own a house. The ability to buy a house does not define how well off one is financially. We will NEVER buy a house where we live. They are all part of an overpriced bubble market. We have been happy renters for over 15 years. Our rent is sky high but we don't have a $800000 mortgage debt or $15k annual property tax bill either. We love where we live and will stay here as long as we can continue to afford it. We make just over $100k net, single income, and we are living very comfortably in one of the highest COL counties in the country. No desire to buy a house.

$100k net is very different that $100k gross. If you are funding a 401(k), paying for benefits and FICA, federal and state taxes, your gross is probably more than $150k.

 

[DisneyPrince1982]

Net or Gross ? Either way it is totally out of proportion to salaries here in France so to us it sounds like a lot

In 2012 Median income (salary) net was about 25 507 euros so 28,637.44 USD

It won't have gone up much since as inflation is so low

What's the average salary in Paris? It has to be substantially higher than what you quoted. Rent in Paris is astronomical. It's not even possible to live in a shack with rats on 25,500 euros.

 

[Christine]

I still say it is. It's not Uber rich where you don't even think about cost but those people are rare. Location is key, but for the majority of the U.S. If you can't put away a substantial part of 100k, you've got spending problems.

Where do you live?

 

[Christine]

It's not wealthy, but it's definitely well off. Americans think they "need" too much.

Guess what? You don't NEED to own a house. The ability to buy a house does not define how well off one is financially. We will NEVER buy a house where we live. They are all part of an overpriced bubble market. We have been happy renters for over 15 years. Our rent is sky high but we don't have a $800000 mortgage debt or $15k annual property tax bill either. We love where we live and will stay here as long as we can continue to afford it. We make just over $100k net, single income, and we are living very comfortably in one of the highest COL counties in the country. No desire to buy a house.

I agree that a house is not a need, but sometimes it is more practical. When I bought my house in 1994, rents that would hold a 4-person family were around $1500 per month. This is an apartment or a townhome--nothing palatial. Guess what my mortgage payment is: $1400.

Yes, I have to pay taxes and maintenance, but with those numbers, it makes sense for me to buy.

That said, the housing/rental market is very different today than it was when we bought our home. Rents for a 4 person apartment or home are now in the $2,000K plus range; however, a mortgage monthly payment for my same home would be closer to $2500 or higher.

 

[3 MEN AND A BOAT]

Where do you live?

Coastal Alabama

 

[eliza61]

What's the average salary in Paris? It has to be substantially higher than what you quoted. Rent in Paris is astronomical. It's not even possible to live in a shack with rats on 25,500 euros.

Paris is like any major city. You'd be hard pressed to live in an apartment in NYC or Philly on that salary also but only a small portion of the population do.

I think it France the average monthly salary is about 2500 Euros about 3000 dollars. could some one get an apartment in Manhattan on that salary? probably not without a roommate.

 

[Carrie_Cat]

What's the average salary in Paris? It has to be substantially higher than what you quoted. Rent in Paris is astronomical. It's not even possible to live in a shack with rats on 25,500 euros.

I lived in Paris for 22 years on less than that salary for a large part of it and I lived in nice appartments in nice areas that were out of the tourist triangle. Not all of Paris costs an arm and a leg.

The official Insee stats for again 2012 show Paris with a Median income of 25,711€

http://www.insee.fr/fr/themes/comparateur.asp?codgeo=dep-75

 

[Carrie_Cat]

Paris is like any major city. You'd be hard pressed to live in an apartment in NYC or Philly on that salary also but only a small portion of the population do.

I think it France the average monthly salary is about 2500 Euros about 3000 dollars. could some one get an apartment in Manhattan on that salary? probably not without a roommate.

You can find appartments in the 12th/13th/14th/15th,17th/19th/20th on that salary and you wouldn't have to share. Sharing is not common outside of expats