Six digit income - breaking even or rich?

amother

Ruby

Thu, Dec 30 2021, 10:40 pm

amother [ Tealblue ] wrote:

We go through this often on this site.

Real estate, nursing homes and all kinds of other entrepreneurial pursuits.

This but also generational wealth. A lot of wealthy people started out in a better place, so it was easier to get to the top. They have the capital to invest in real estate, or the connections, or someone to pay the student loans and living expenses so they can become the top doctor or whatever. Then they don't even think of it as wealth because it's the way it's always been. I know some people like this and it's kind of interesting.

amother

Melon

Thu, Dec 30 2021, 10:48 pm

amother [ Ruby ] wrote:

Yep, you need money to make money.

amother

Puce

Thu, Dec 30 2021, 10:49 pm

amother [ Ruby ] wrote:

I like it my way better. LOL

Started out with nothing. Husband in kollel. Student loans for my masters. Worked crazy hours until finally starting out on my own as an entrepaneur.
I know what it's like to have nothing. I appreciate everything - mostly my 2x weekly cleaning lady lol! We also made paying off student loans the highest priority and I"m so grateful for that. We skimped and saved until those were paid off really quickly.

I have nothing against those that come from wealth. But I don't think those that don't come from it are in the same ballpark. It will take longer to accumulate when you are making every penny from nothing.

amother

Blush

Thu, Dec 30 2021, 10:50 pm

amother [ Puce ] wrote:

11k:
-3,600- mortgage
-3,000- tuition and childcare (lakewood)
-Cleaning lady-600
-Tutor- 700
-learning rebbe- 1,200
We have no bus so Ride to/from school- 3 different schools!
-350, 135, 400= total of abt 900
Utilities- 400?
Internet/phone - 200
Food - 800-1000
500- miscellaneous on credit card- clothes, diapers, target, Walmart, amazon etc.

This is a little more than 11k but Our expenses are about half during the summer So it evens out.

-I don’t know car & health insurance #s sorry.
-We own a second hand sienna and a Camry it’s cheaper than leasing.
- we don’t eat out much. If we do it’s maybe once a month to the bagel or pizza store.
I feel comfortable. I can buy my kids clothes every season. I shop clothing sales at the end of the season for the next bec I enjoy getting a bargain. My kids are dressed beautifully for a fraction of the cost.
I’m able to buy myself things. Clothing, iced coffee. To me, those are luxuries to be thankful for. Not everyone has that.

Im happy it works, but you realize it doesn’t add up. Your expenses are 12,000 before health insurance, car, charity, yom tov expense summer expenses etc. I guess Hashem just makes it work.

You also reminded me about certain expenses I forgot about….

amother

Tan

Thu, Dec 30 2021, 11:20 pm

amother [ Blush ] wrote:

Rich means millions in the bank and years of accumulated assets and money.
I’m comfortable that’s not rich.

I understand what Blush means as she is describing wealth

That is different than making a salary even if the salary is high. People who have salaries aren’t wealthy because their lifestyle depends on their salary.

I have wealthy friends and they don’t work and their children and grandchildren are set up for life.

On some level they live relatively modestly as they could afford a much more extravagant home for example so most people would be surprised at how wealthy they actually are. They still shop at Trader Joe’s and drive older Lexus but they just bought their daughter a $4 million home for cash and bought the house next to them because they didn’t want to worry about neighbors. One of their single adult kids lives there and they also use it as a guest house.

amother

Cerulean

Thu, Dec 30 2021, 11:35 pm

So I don’t know if I’m considered wealthy by all standards but this is my situation.

My husband makes about $170k I make about $110k annually. This is pretax
We have two kids.

No real estate, no nursing homes no generational wealth at all. No degrees either.
We both are just very knowledgeable in our own fields and really tapped into them.

I think this is our budget monthly

Mortgage 2300
Food $1600
Cars 800
Cleaning help 400
Childcare 1000
Health insurance 900
Car insurance 150
Gas 400
Dates 400 incl babysitters
Manicures $80
Maaser 2000
Life ins 200
Clothing depends on the month
Other expenses such as household items, toiletries, target.. $1000

We Bh are able to save nicely and invest in our futures

amother

Daphne

Thu, Dec 30 2021, 11:37 pm

amother [ Blush ] wrote:

She mentioned that expenses were about half in the summer, so it balances out.

amother

Celeste

Thu, Dec 30 2021, 11:47 pm

Rubies wrote:

No one said she isn't comfortable and spending on luxuries.
I still don't consider that rich.

Then you're using words incorrectly, in a manner that renders them incomprehensible to others.

The median household income in NYC, where wages tend to be high, is $64,000; the mean is about $95,000.

Her income is about 10 times that. It places her within the top 1% of incomes in the US.

To claim that isn't rich is to twist language beyond all logic and understanding.