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

[elaine amj]

If you make $40k a year, u are middle class and $100k is wealthy
If you make $100k a year, u are middle class and $100k is just enough to get by
If you make $200k a year, u are middle class and $100k is practically struggling

Most people classify themselves as middle class and their view of a "normal middle class lifestyle" is shaped by their peers and their own experiences.

 

[kandb]

We live close to NYC and my husband and I make around $240k/year. I know it seems like a lot but it really isn't. The taxes are high when you make more money, are real estate taxes are high, cable is high, cell phone bills are high, utilities cost a lot, tolls/gas/car insurance is very high, high grocery bills etc. We don't eat out often and I am not a shopper but the money seems to go very easy on just everyday expenses.

Forgot to add, I am a government worker, healthcare used to be free, now paying $400/month and it will go up to $500/month in January, also homeowners insurance is high. Our main family car is 11 years old, we don't splurge but my husband does put away 30% of his salary into a government work fund.

 

[arminnie]

To me wealth has nothing to do with your income. Wealth is based on your net assets. I know people with multimillion dollar assets (no debts) whose only "income" is very modest social security. Most assets provide very little income these days but selling off the principle can allow one to live very large.

 

[tvguy]

If you make $40k a year, u are middle class and $100k is wealthy
If you make $100k a year, u are middle class and $100k is just enough to get by
If you make $200k a year, u are middle class and $100k is practically struggling

Most people classify themselves as middle class and their view of a "normal middle class lifestyle" is shaped by their peers and their own experiences.

I can see this. For me, having never made $100,000, and managing to pay all my bills and do everything I want to do, making $100,000 would make me FEEL wealthy.

 

[tvguy]

We live close to NYC and my husband and I make around $240k/year. I know it seems like a lot but it really isn't. The taxes are high when you make more money, are real estate taxes are high, cable is high, cell phone bills are high, utilities cost a lot, tolls/gas/car insurance is very high, high grocery bills etc. We don't eat out often and I am not a shopper but the money seems to go very easy on just everyday expenses.

Forgot to add, I am a government worker, healthcare used to be free, now paying $400/month and it will go up to $500/month in January, also homeowners insurance is high. Our main family car is 11 years old, we don't splurge but my husband does put away 30% of his salary into a government work fund.

Location is huge. And your history shape your perspective. I'd love to only be paying $500 a month for healthcare (for 3). And to me cell phones and cable TV are still luxuries. And with the average American keeping a car 11.4 years, you are average there. Our new reliable car is 12 years old, our family car 28 years old. But again, your location is to me has the biggest impact on your cost of living. So yes, $100,000 would not be wealthy for you.

 

[Christine]

We live close to NYC and my husband and I make around $240k/year. I know it seems like a lot but it really isn't. The taxes are high when you make more money, are real estate taxes are high, cable is high, cell phone bills are high, utilities cost a lot, tolls/gas/car insurance is very high, high grocery bills etc. We don't eat out often and I am not a shopper but the money seems to go very easy on just everyday expenses.

Forgot to add, I am a government worker, healthcare used to be free, now paying $400/month and it will go up to $500/month in January, also homeowners insurance is high. Our main family car is 11 years old, we don't splurge but my husband does put away 30% of his salary into a government work fund.

The things that I've bolded are pretty much the same throughout the country if you view any cost of living calculators. They vary around 10%, up or down, depending on locale. Most of the things that are bolded are still being paid, close to what you pay, but everyone. When I look at cost of living calculators, the biggest shock to me is housing. I live outside of DC and when I compare my area to other places (in some cities), it is staggering the percentage difference in housing costs. There's where you get your money eaten up!

When you say you are a government worker, is that for the state? I am federal and we've never had free insurance. Additionally, putting 30% of your salary (your DH's salary rather) into a fund is a luxury that most people, even at $100K cannot afford.

 

[Gracie09]

The things that I've bolded are pretty much the same throughout the country if you view any cost of living calculators. They vary around 10%, up or down, depending on locale. Most of the things that are bolded are still being paid, close to what you pay, but everyone. When I look at cost of living calculators, the biggest shock to me is housing. I live outside of DC and when I compare my area to other places (in some cities), it is staggering the percentage difference in housing costs. There's where you get your money eaten up!

When you say you are a government worker, is that for the state? I am federal and we've never had free insurance. Additionally, putting 30% of your salary (your DH's salary rather) into a fund is a luxury that most people, even at $100K cannot afford.

I have to disagree with the idea that the items gilded are the same throughout the country. If you look at any of the websites where cost of living is compared, pretty much all of these areas are higher in the nyc metro area than the vast majority of the rest of the country. Area like cities in ca, around Washington, D.C. Would be some of the exceptions. Let's take tolls. My husband has to drive to work. It's a job requirement that he have his truck. His tolls alone are around $20 a day. Even if you take mass transit, a monthly train ticket will run you several hundred with adding another 50-100 a month for parking if you have a monthly pass.

 

[Christine]

I have to disagree with the idea that the items gilded are the same throughout the country. If you look at any of the websites where cost of living is compared, pretty much all of these areas are higher in the nyc metro area than the vast majority of the rest of the country. Area like cities in ca, around Washington, D.C. Would be some of the exceptions. Let's take tolls. My husband has to drive to work. It's a job requirement that he have his truck. His tolls alone are around $20 a day. Even if you take mass transit, a monthly train ticket will run you several hundred with adding another 50-100 a month for parking if you have a monthly pass.

You are correct, I should not have highlighted tolls and mass transit; however, for things like food, medical insurance, doctor's visits, auto insurance, homeowners, etc, cable, phone service--these costs are relatively stable (given 10% as I said). I was doing a cost of living calculation a few weeks ago and it was interesting to see that housing was the most significant factor. In the DC suburbs, for example, it was almost 70% more in housing costs than other areas.

 

[DisneyOma]

My husband and I are in the $100K range. I was happy to just get a 1% raise, but oops - insurance just went up, the raise bumped me up into a new tax bracket, and poof! Instead of an extra $15 per pay period, my check is $7 less than last year! So, for the same job, I'm bringing home less money. No, I don't feel wealthy. I feel middle class being pushed down to widen the gap with the uber-wealthy as much as possible.

 

[Gracie09]

You are correct, I should not have highlighted tolls and mass transit; however, for things like food, medical insurance, doctor's visits, auto insurance, homeowners, etc, cable, phone service--these costs are relatively stable (given 10% as I said). I was doing a cost of living calculation a few weeks ago and it was interesting to see that housing was the most significant factor. In the DC suburbs, for example, it was almost 70% more in housing costs than other areas.

Most significant doesn't mean the other items don't have an increased cost. I did a comparison of nj vs Illinois (both suburb areas of major cities). Across the board, nj was higher in food, health care, utilities, every category. Some may only be a percentage point or two, but others - food for example- was almost 20 points higher in nj than outside Chicago.
I also think I pay the second highest rates for auto insurance, to mass.

 

[kandb]

The things that I've bolded are pretty much the same throughout the country if you view any cost of living calculators. They vary around 10%, up or down, depending on locale. Most of the things that are bolded are still being paid, close to what you pay, but everyone. When I look at cost of living calculators, the biggest shock to me is housing. I live outside of DC and when I compare my area to other places (in some cities), it is staggering the percentage difference in housing costs. There's where you get your money eaten up!

When you say you are a government worker, is that for the state? I am federal and we've never had free insurance. Additionally, putting 30% of your salary (your DH's salary rather) into a fund is a luxury that most people, even at $100K cannot afford.

I work for county government in NJ. Yes, up until government Christie became elected and passed new legislation, we paid nothing for medical insurance. We are a family of 5. Even paying right now $400/mo, we have great insurance, $10 copay and you do not need referrals. I do believe that my salary would be a lot higher if I started working in the private sector though. We always had great benefits, 4 weeks vacation, 15 sick days, 4 personal days but salary is not as high as private sector.

 

[FINFAN]

My husband and I are in the $100K range. I was happy to just get a 1% raise, but oops - insurance just went up, the raise bumped me up into a new tax bracket, and poof! Instead of an extra $15 per pay period, my check is $7 less than last year! So, for the same job, I'm bringing home less money. No, I don't feel wealthy. I feel middle class being pushed down to widen the gap with the uber-wealthy as much as possible.

+1. You are spot on with the gap widening, IMO, there will be no middle class all too soon.

 

[Art 1]

+1. You are spot on with the gap widening, IMO, there will be no middle class all too soon.

That's why it's a good idea to let ones children know what's going on so that they understand the need to push and work hard to not become left in the dust. It's a parents duty.

 

[FairestOfThemAll37]

That's why it's a good idea to let ones children know what's going on so that they understand the need to push and work hard to not become left in the dust. It's a parents duty.

I think that's the whole point you're missing. The whole bootstrapping and upward mobility is quickly becoming a farce. Hard work no longer guarantees that you won't get left in the dust. Especially with the upcoming generation's catch-22 of education versus debt.

IMO being wealthy means that your money works for you; that you can live off your divends/investments.

Very few people who need to work for it will ever achieve "wealth" as a PP posted, earning more means higher taxes pushing back. When your money works you pay very little back to Uncle Sam.

 

[tvguy]

I have to disagree with the idea that the items gilded are the same throughout the country. If you look at any of the websites where cost of living is compared, pretty much all of these areas are higher in the nyc metro area than the vast majority of the rest of the country. Area like cities in ca, around Washington, D.C. Would be some of the exceptions. Let's take tolls. My husband has to drive to work. It's a job requirement that he have his truck. His tolls alone are around $20 a day. Even if you take mass transit, a monthly train ticket will run you several hundred with adding another 50-100 a month for parking if you have a monthly pass.

If he is required to have his truck for work why isn't his employer paying the tolls? I used to have to use my car for work, and the company said they were required to pay me the current IRS mileage reimbursement rate, (16 cents a mile in those days currently 57.5 cents per mile) plus all tolls and parking fees and parking tickets i got in the course of my work.

 

[tvguy]

When you say you are a government worker, is that for the state? I am federal and we've never had free insurance. .

I think it depends when you were hired and what department you work for. My brother is civilian DOD, his insurance has always been free for him and all dependents. At 65 it converted to insurance that pays almost everything Medicare doesn't. He was in the hosptial and rehab for 3 months, his out of pocket was $25.

 

[Gracie09]

If he is required to have his truck for work why isn't his employer paying the tolls? I used to have to use my car for work, and the company said they were required to pay me the current IRS mileage reimbursement rate, (16 cents a mile in those days currently 57.5 cents per mile) plus all tolls and parking fees and parking tickets i got in the course of my work.

I didn't say we paid them. That is just what they are. He actually has a very generous car allowance as well as gas and tolls. If he has to pay for parking, that is also expensed.

 

[Gumbo4x4]

We live close to NYC and my husband and I make around $240k/year. I know it seems like a lot but it really isn't. The taxes are high when you make more money, are real estate taxes are high, cable is high, cell phone bills are high, utilities cost a lot, tolls/gas/car insurance is very high, high grocery bills etc. We don't eat out often and I am not a shopper but the money seems to go very easy on just everyday expenses.

Forgot to add, I am a government worker, healthcare used to be free, now paying $400/month and it will go up to $500/month in January, also homeowners insurance is high. Our main family car is 11 years old, we don't splurge but my husband does put away 30% of his salary into a government work fund.

If that $500 is just for you, you may want to consider leaving your employer provided plan. I did that some years back. Even with the company paying part of the cost, an outside plan was a LOT cheaper. The company now contributes more toward my cost, so I'm back on the company plan, but DW & the kids are not as the family plan is around $1,400 a month & not even that great of a policy

 

[ronandannette]

If that $500 is just for you, you may want to consider leaving your employer provided plan. I did that some years back. Even with the company paying part of the cost, an outside plan was a LOT cheaper. The company now contributes more toward my cost, so I'm back on the company plan, but DW & the kids are not as the family plan is around $1,400 a month & not even that great of a policy

Our household income is +/-$140K. $1,400 mo. = $16,800/year or about 12% of our gross annual income. That would represent absolutely all of our disposable income and some of our variable cost spending as well. If we had to pay that money for health insurance we would go from having a very comfortable lifestyle to not being able to afford cable tv or cell phones and it goes without saying that vacations and recreation would be completely off the table. It would certainly seem, therefore, that in no way could $100K a year be considered wealthy. I simply don't understand how anybody can make the numbers work under those circumstances.
**For the record, our OOP for health insurance is about $200/mo. for a supplemental policy through my work that covers things like prescription drugs, dental care, complementary therapies and income replacement for long-term disability.

 

[Gumbo4x4]

Our household income is +/-$140K. $1,400 mo. = $16,800/year or about 12% of our gross annual income. That would represent absolutely all of our disposable income and some of our variable cost spending as well. If we had to pay that money for health insurance we would go from having a very comfortable lifestyle to not being able to afford cable tv or cell phones and it goes without saying that vacations and recreation would be completely off the table. It would certainly seem, therefore, that in no way could $100K a year be considered wealthy. I simply don't understand how anybody can make the numbers work under those circumstances.
**For the record, our OOP for health insurance is about $200/mo. for a supplemental policy through my work that covers things like prescription drugs, dental care, complementary therapies and income replacement for long-term disability.

OH, but there's even more good news - that's just the cost of the policy. If you actually need to USE it, there's deductibles & coinsurance to pay as well