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

[DisneyPrince1982]

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

I guess I'm being lied to on House Hunters International then. Everytime they do a Paris segment, the renter is always whining and crying about how they can't find a nice place within their budget.

 

[Christine]

Coastal Alabama

So, looking at a COL indicator I can see why you would feel that anyone making $100K should be able to save money.

If I make $100,000 in the DC/MD/VA area, I would only need to make $65,000 in Alabama to live comparably.

So, I guess that means that in Alabama, a person making $65,000 per year should be able to put away a substantial part of 65k, or they have spending problems. Maybe that's true? I don't know.

 

[Carrie_Cat]

I guess I'm being lied to on House Hunters International then. Everytime they do a Paris segment, the renter is always whining and crying about how they can't find a nice place within their budget.

I guess they are looking for what they have in the US which you won't find here - appartments are smaller, houses in Paris are like hens teeth and are kept on from family to family. We don't have several bathrooms per family and things like garages are few and far between as having such a good cheap transport system people don't have cars

 

[DisneyPrince1982]

I guess they are looking for what they have in the US which you won't find here - appartments are smaller, houses in Paris are like hens teeth and are kept on from family to family. We don't have several bathrooms per family and things like garages are few and far between as having such a good cheap transport system people don't have cars

I forgot which arrondissement is always the one people want. Maybe 11th? Not sure.

 

[3 MEN AND A BOAT]

So, looking at a COL indicator I can see why you would feel that anyone making $100K should be able to save money.

If I make $100,000 in the DC/MD/VA area, I would only need to make $65,000 in Alabama to live comparably.

So, I guess that means that in Alabama, a person making $65,000 per year should be able to put away a substantial part of 65k, or they have spending problems. Maybe that's true? I don't know.

I think DC/MD/VA and major cities are more of an exception than the rule is mostly what I'm getting at. Sometimes it's easy to forget that the rest of the country isn't that expensive. But yes you can save on 65k in AL, I am.

 

[Christine]

I think DC/MD/VA and major cities are more of an exception than the rule is mostly what I'm getting at. Sometimes it's easy to forget that the rest of the country isn't that expensive. But yes you can save on 65k in AL, I am.

I think you are correct in that there are far fewer areas with high COL than the rest of the country; however, they tend to be jam packed with people so while the number of expensive areas is relatively low, population percentage makes up for it.

So since you have a $65K salary in coastal Alabama, which equates to a $100K salary in the DC area, do you feel wealthy? I do not feel wealthy on mine. Or if not wealthy, just a notch under wealthy? I sure don't. Granted, I am comfortable and can save, eat out occasionally, and go on vacation every other year. If I didn't have just come out of raising two kids, I think I'd feel a lot more "flush" with cash.

 

[NewRVLady]

When our kids finished college and were self supporting -we really felt richer on our $150k plus income- it was a time to really sock away savings
There were $100k years and with 2 in private school- HS - it was a comfortable life- but far from wealthy

 

[Christine]

When our kids finished college and were self supporting -we really felt richer on our $150k plus income- it was a time to really sock away savings
There were $100k years and with 2 in private school- HS - it was a comfortable life- but far from wealthy

I hear you. I feel like my kids' expenses sort of suffocated me financially. One of them is still in college so he's still on "my payroll." I really can't wait to enjoy the money I make free and clear!

 

[KimR]

I can't think of anywhere in this country where $100K would be considered wealthy. The cost of living is relatively low where we live and I cannot imagine trying to raise a family on 100K a year. Years ago maybe, but not today. I know people who I am guessing make close to that and they are struggling financially. They live in small starter homes, take frugal vacations, and have little money for extras.

 

[BostonJP]

Chris Rock has an amazing stand-up bit (that's also incredibly vulgar so I'm not posting it here) about the differences between "rich" and "wealthy". People who are wealthy are set for the rest of their lives, whereas rich people can go bankrupt with a couple poor decisions.

On a side note there is a lot of debate over fast food workers earning $15 an hour. This sounds like a fair number for comparison - a married couple, each working 40 hours per week at $15 an hour, earns $62,400 per year. A little more than the national average and it's still more than halfway there - 50% more than a fast food salary and this family is pulling in 100,000 a year.
(I know this is oversimplifying and there are still huge problems with income inequality in this country, but that's a political rant for another thread)

 

[mombrontrent]

I can't think of anywhere in this country where $100K would be considered wealthy. The cost of living is relatively low where we live and I cannot imagine trying to raise a family on 100K a year. Years ago maybe, but not today. I know people who I am guessing make close to that and they are struggling financially. They live in small starter homes, take frugal vacations, and have little money for extras.

This is one of the most ridiculous things I have ever read and I really don't even know how to respond to it.

 

[Gumbo4x4]

I can't think of anywhere in this country where $100K would be considered wealthy. The cost of living is relatively low where we live and I cannot imagine trying to raise a family on 100K a year. Years ago maybe, but not today. I know people who I am guessing make close to that and they are struggling financially. They live in small starter homes, take frugal vacations, and have little money for extras.

Can't imagine trying to raise a family on $100K in a low COL area? I think that's a bit of an exaggeration in the other direction. Maybe it depends on your definition of a "starter home". A generation ago, that was a sub 1,000 square ft home. These days, some think a home twice that size is a "starter home".

 

[Gumbo4x4]

$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.

Yup. My take home pay is 67.4% of my gross. And the insurance premiums for DW & DDs don't even come out of that.

 

[Colleen27]

I can't think of anywhere in this country where $100K would be considered wealthy. The cost of living is relatively low where we live and I cannot imagine trying to raise a family on 100K a year. Years ago maybe, but not today. I know people who I am guessing make close to that and they are struggling financially. They live in small starter homes, take frugal vacations, and have little money for extras.

I can't even imagine. I live in a place with a lower than average cost of living and on an income well below 100K we have a decent sized home, two kids in private school, modest vacations, and quite a few extras. If people are struggling on 100K outside of high COL areas I'm inclined to think it is their own choices - car payments and buying too much house and otherwise choosing a lifestyle they feel entitled to (and I've certainly seen that in action... "We make 6 figures, we deserve new construction/luxury cars/whatever") rather than one they can afford.

 

[morgan98]

Yup. My take home pay is 67.4% of my gross. And the insurance premiums for DW & DDs don't even come out of that.

I can't even imagine. I live in a place with a lower than average cost of living and on an income well below 100K we have a decent sized home, two kids in private school, modest vacations, and quite a few extras. If people are struggling on 100K outside of high COL areas I'm inclined to think it is their own choices - car payments and buying too much house and otherwise choosing a lifestyle they feel entitled to (and I've certainly seen that in action... "We make 6 figures, we deserve new construction/luxury cars/whatever") rather than one they can afford.

Yes, this is exactly what I said earlier in the thread about how it seems like people's expectations of a "middle class life" have really become super-sized. Many things that people thing are "normal" are really things that have been considered luxury in the past.

ETA: I did not mean to quote the first post, but my take home is even less than the 67%. Net and gross are very different numbers, that's for sure.

 

[Colleen27]

Yes, this is exactly what I said earlier in the thread about how it seems like people's expectations of a "middle class life" have really become super-sized. Many things that people thing are "normal" are really things that have been considered luxury in the past.

Yep. I know little things like cell phones and computers get the blame, but that doesn't even compare to the housing and transportation expectations that have changed. My grandmother took a bus to work and my grandfather bought a new car every 15-20 years as needed. He'd have died laughing at the stupidity of the 36-month lease! And the same has happened with housing; I see 2000 sq ft homes marketed as "starter homes", when my mom's and grandparents' "forever" homes were little more than half that size, and I have friends who will only consider new construction rather than buying "someone else's cast off". Those things really drive up the cost of being middle class. So do the rising costs for essentials like education and health care, to be sure, but the expectation that middle class means a sprawling home and two new cars in the garage certainly makes being middle class a lot more expensive than it was in the heyday of the American middle class.

 

[Bec3b1g]

Yes, this is exactly what I said earlier in the thread about how it seems like people's expectations of a "middle class life" have really become super-sized. Many things that people thing are "normal" are really things that have been considered luxury in the past.

ETA: I did not mean to quote the first post, but my take home is even less than the 67%. Net and gross are very different numbers, that's for sure.

Totally agree. You see this over and over here on the DIS with the wedding threads.

 

[Gumbo4x4]

I can't even imagine. I live in a place with a lower than average cost of living and on an income well below 100K we have a decent sized home, two kids in private school, modest vacations, and quite a few extras. If people are struggling on 100K outside of high COL areas I'm inclined to think it is their own choices - car payments and buying too much house and otherwise choosing a lifestyle they feel entitled to (and I've certainly seen that in action... "We make 6 figures, we deserve new construction/luxury cars/whatever") rather than one they can afford.

My grandfather had a good union job and Grandma worked - unusual for her generation. Their "forever" home was 800 square feet.

 

[Colleen27]

Totally agree. You see this over and over here on the DIS with the wedding threads.

And birthday parties. I can't believe what some people spend on those! At least with a wedding you can make the "once in a lifetime" argument. Birthdays come every year.

My grandfather had a good union job and Grandma worked - unusual for her generation. Their "forever" home was 800 square feet.

My family was the same. Grandpa was UAW, Grandma had a small catering business with her sisters. Their home was (is - my mother lives there now) 1000 sq ft plus a semi-finished basement. My house is twice that size and is still smaller and older/less updated than the homes most of my friends live in, but a lot of them feel they're in a "starter". This is absolutely the biggest home I ever intend to own and I look forward to downsizing when the kids are grown.

 

[Gumbo4x4]

And birthday parties. I can't believe what some people spend on those! At least with a wedding you can make the "once in a lifetime" argument. Birthdays come every year.



My family was the same. Grandpa was UAW, Grandma had a small catering business with her sisters. Their home was (is - my mother lives there now) 1000 sq ft plus a semi-finished basement. My house is twice that size and is still smaller and older/less updated than the homes most of my friends live in, but a lot of them feel they're in a "starter". This is absolutely the biggest home I ever intend to own and I look forward to downsizing when the kids are grown.

Speaking of UAW, I saw recently that the salary they received in the 50's was basically the equivalent of $100,000 today. And yet, a 1,000 square foot home worked for your grandparents. Kind of puts things in perspective.