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$150,000 A Year Qualifies As Being "Rich"???

Discussion in 'General Mindset, Motivation, Beliefs' started by Nick2169, Dec 9, 2011.

  1. Nick2169
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    Nick2169 New Contributor Read Millionaire Fastlane

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    Hey everyone, I'm new here and hope I'm posting this in the right place. I came across an article today from Gallup about the results of a recent poll they conducted. The poll asked Americans at which threshold they would consider themselves to be "rich." The median answer was...$150,000 in annual income. $150,000!!! Additionally, 30% of respondents said less than $100,000 a year would suffice.

    Now granted a couple of months ago I probably wouldn't be answering too differently than those in this poll. In fact, I previously thought that making a minimum of $100,000 a year should be my barometer of whether or not I'm a success in the job market. "As long as I make six figures a year...," I would say to myself, but now I'm thinking a little differently thanks to TMF.

    Anyways, I thought the article was interesting and wanted to share it to remind us all what IS and ISN'T a lot of money...

    Here's the article and the full results of the poll (it's not a hyperlink - I wasn't sure if I could do that yet so just copy and paste it) - http://www.gallup.com/poll/151427/Americans-Set-Rich-Threshold-150-000-Annual-Income.aspx


    Cheers,
    Nick
     
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  2. theBiz
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    theBiz Silver Contributor Speedway Pass

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    hey, to be honest as sad as it sounds, its just not enough. I honestly know people whose property taxes are more than that, not impressed by that, im just saying life can be expensive. i think MJ said 100-200k per month profit he did.

    If you make the right moves and save your money, you can be SAFE which is the goal in life. You wont HAVE to worry after some point but with 100k per year will constantly be an uphill battle even if you save. Making 100k per year really isnt hard, you can work your a** off at many jobs and make that. Surround yourself with people making money, getting in the car with a 27 year old friend that's self made and driving a ferrari really makes you feel like an idiot, and that's a good thing. But do what you want, not what others influence on you, but remember you need to save most of your income to be free one day so if you think 100k is enough you need to spend about 10k per year to be free one day IMO.
     
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  3. sharky
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    sharky Contributor Read Millionaire Fastlane

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    Annual income in and of itself should not classify you as "rich", Net Worth should be the qualifier.
     
  4. biggeemac
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    biggeemac Silver Contributor FASTLANE INSIDER Speedway Pass

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    Due to the paradigm shift that most of us have experienced after reading MJ's book, trading our lives for 150k a year probably wouldn't make any of us feel "rich". Now, if i could sit on my ass and not move a finger and make 150k a year, then i might feel a little wealthy :smxF:
     
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  5. winch
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    winch New Contributor

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    In an absolute sense, no not a lot of money.

    However, if I made $150,000/year and it supported my lifestyle and didn't require all of my time, I'd be perfectly happy with that. Why shouldn't anyone be?

    For me, money is nice, no doubt. But, it's my time that I value the most. I could spend the majority of my waking hours at a job and get a paycheck. I'd get paid, but at a huge cost of something that will ALWAYS have increasing scarcity, no matter what I do. I want my time.

    Hypothetical: Say one needs only $40k/year to live happily. If he or she makes that and it doesn't require a lot of time, then how are they not doing just fine? If they'd like to go further for the sake of it... Great. All the power to them.

    Though you say you're thinking differently thanks to TMF, it still sounds like the same thinking as before. Just the dollar amount is much higher now.
     
  6. rc08234
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    rc08234 Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    I think self worth has alot to do with it, and most people don't feel that they are worth 150k a year. i remember reading someone that a company posted for a web designer or something of that nature and offered 80+ grand a year, and only like 4 people responded, but when they posted the same exact job at 40k a year they had like 30 or 40 people apply.

    Also, location would play a roll, you make a 150k a year in Alabama and they elect you governor, 150k in NY and your average.

    Economic status would probably influence people also, 6 or 7 year ago there was a record number of millionaires, and the survey probably would have been much didn't. Now in a recession and people loosing their houses, a record high of unemployment I think most people would feel rich on 150k

    I myself at 22 would feel rich making 150k a year, but at 30 or 40 I wouldn't feel so happy. People like us think different though, and we know it's possible to break 150k a year without relying on a paycheck. I think most people think they can only make 150k a year by being a higher up in their company they are currently employed.
     
  7. H. Palmer
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    H. Palmer Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    The yardstick for how rich you are is not measured in money but in time.

    To be specific: how many months/years can you afford not to work while living your preferred lifestyle without running out of money?

    If the answer is "indefinitely", then you have made it. Then you are rich.
     
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  8. Iqen
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    Iqen Contributor

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    At the end of the day money is just a vehicle for supporting yourself and doing the things you want to do.

    150k is about 3x the median salary. That's a big difference. The studies I've read indicate that once past 75k household income, extra money does not result in more happiness. The money/happiness relationship has exponentially diminishing returns.

    I agree with Amshel; true wealth is more about how much control of your time you have
     
  9. winch
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    winch New Contributor

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    Wouldn't a study of income impact be very sensitive to geographical location? That's assuming everything else is in a vacuum, of course. In reality, happiness has so many variables that for someone to think they can even link it to income via a study seems myopic to me. Many people make less than 75k and are perfectly happy. Some make orders of magnitude more and would never be happy.

    I'm not implying you don't know this, or really speaking to you personally. This just reminded me how much I'm surprised by the ridiculous "studies" coming out these days.
     
  10. The-J
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    The-J Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    The average American would consider $150,000 to be 'rich'... except that the average American who is angry at the 1% doesn't realize that the 1% actually makes $828,000 a year; this is more than any doctor, lawyer or investment banker will ever make as an employee.

    I believe 'rich' to be too subjective. I use it in conversation but as for considering people 'rich' I don't use annual income or net worth or anything like that to consider who is 'best off' in life. You could make $25 million a year, but if you are not smart, you won't be wealthy.

    Chris Rock made a good point when he said "not talking about rich, I'm talking about wealth. Shaq is rich; the white man who signs his check is WEALTHY." Shaq could lose his money any second; he breaks his leg, his money is gone; he develops arthritis, his money is gone. However, the owner of the team nets money no matter who the hell plays on his team; of course, he makes more money from a winning team than a losing one, but he loses a player, he doesn't lose his money.

    I think it's more about how long you can keep the freedom that comes with the money. Money is nothing without freedom: a lot of people from my school are going to work on Wall Street making $80,000 right after graduation. Some of them will be netting six figures right out of the undergrad program; what they don't tell you is how much work is actually put into it. When they tell you, you don't listen and you take the job anyway. You get a condo in the city, an E-class Mercedes and a girlfriend in medical school while you work 80 hours a week. Most of your time does not go to money management or asset creation: it goes to putting your nose to the grindstone. The money is great, but there's nothing better than freedom.
     
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  11. Pete799p
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    Pete799p Bronze Contributor Read Millionaire Fastlane Speedway Pass

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    For me I would be happy with 50k a year passive. Then I could be free to do what I love to do which happens to be entrepreneurship and investing. Seeing what some have accomplished "Jack" with as little as 15k amazes me and would love to have a 50K a year passive safety net/ reinvestment fund. I am currently building a fastlane business but would take a 150K job if offered as it would allow me to start investing my way to freedom. I would then build a business with my investment cash flow. However, most jobs that I can think of require several years of "career building" to get to that level and the way I see it I can build a business in around the same amount of time.

    My recomendation for those who are making 100K+ learn how to invest and lower your expenses as much as possible. Biophase is a member on this forum who did something similar and now runs a fastlane business on top of his investment income.
     
  12. Robre
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    Robre New Contributor Read Millionaire Fastlane

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    Exactly, someone who makes $150,000 a year might have a huge net worth from prior investments, living in a small home on the other end of the spectrum they might be in a ton of debt and they can't manage it.

    Take any 2 people with the same income, weather good or bad means nothing, it's your net worth.
     
  13. MMatt
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    MMatt Bronze Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    My definition of rich would to be making passive income large enough to live comfortably. Freedom is more important to me than the huge house and riches. Don't get me wrong I want to make the largest income I can in my lifetime but being rich would mean I do what I want when I want, and don't sell my life to a company for an average salary.

    150k would be wealthy to the average American, but surely not rich unless it is passive income. That salary comes with a price of high hours I'm sure.
     
  14. RazvanRogoz
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    $150.000 is enough for me.

    It's not in the rich spectrum of income, but it's enough for most people.

    However, I'm talking $150.000 in passive or semi-passive income.

    If you are working 70 hours a week in a corporate environment, you have grey hair, you need a new back and your wife is cheating on you, then $1.500.000 would be a better number.

    However, if you work 10 - 15 hours a week, you don't have a mortgage or huge monthly payments and you are rather free to travel or to enjoy life, $150.000 is enough.

    There isn't any exact link between how much you earn over a certain sum and your happiness. There is a link though between how much you earn and your freedom. A free person working 5 hours per week and earning $50.000/year will be more happy (in most of the cases), than someone earning $200.000/year and working 60 - 70 hours per week.

    Razvan
     
  15. The Abundant Man
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    The Abundant Man Contributor Read Millionaire Fastlane

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    Anything past $450k/year is top 1% of the world's income. It's really all relative
     
  16. luniac
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    luniac Gold Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

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    brah... id feel rich 25k a year self employed.
     
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  17. Deluxe
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    As you can see from the replys in this thread wealth is relative.

    The reason why the average came out to around 150 would probably be because it's around double the median income which I estimate would hover between 45-75k.

    If I remember correctly there are studies showing that your ROI in terms of wealth brining you happiness reduce after 75k. Which once again would be because now that you're making slightly more than average you're now able to afford a few nice things, and you have a but of buffer money to easily support a modest lifestyle.

    Additionally the process of hedonic adaptation really messes with your perspective on money over time.

    I think you need above the average annual income in your area to be financially comfortable.

    Then you need 2-3x the average income to feel well off.

    Then 5-10x the average to feel rich.
     
  18. MJ DeMarco
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    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Admin Post
    Consider the difference...

    Earns $150K/year (Scripted Dude #1)
    -- Has a $840,000 mortgage for a 4,500 square foot house.
    -- Has $1,200 in car payments on a BMW and an Audi
    -- Has $42,000 in credit card debt.
    -- Works 6 days a week.
    -- Has ZERO in savings.

    -- Has all the trendy cultural trappings; latest iPhone, latest Prada, latest this, latest that.
    -- Cherishes life on the weekends.

    Earns $150K/year (UnScripted Dude #2)
    -- Owns a 3,000 square foot house free and clear with no mortgage.

    -- Has no debt and no car payments, but owns 2 two cars, one his dream car.
    -- Has credit cards, but pays them off every month.
    -- Works 1 day a week managing his investments and business interests.
    -- Pursues his passions without worrying if his passions pays.
    -- Cherishes life every day.

    Who's rich?

    The fact is $150K/year is plenty IF you've played your cards right.
     
  19. The Abundant Man
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    Everything is all relative
     
  20. GoGetter24
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    GoGetter24 Silver Contributor Speedway Pass

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    $150,000 passive after-tax is rich. Agreed.
     
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