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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To ask what people consider rich....

651 replies

Imoen · 06/06/2019 11:51

I'm possibly going to be flamed but Im genuinely curious. I keep reading on thread about its ok for the "rich" or the rich are getting richer etc....

I've also had several conversations with friends/family and often the throw away comment is "its ok for you, you're rich".

Thing is, I don't think we are. To me rich is not having to worry about working again.

WE both have very very good salaries which I'm grateful for an I know we're lucky (me 90K, him 60K) and we have a mortgage on a 4 bed house worth 280K. (130K left to pay).

But I would not say we are "rich".

OP posts:
elliejjtiny · 07/06/2019 21:17

It's relative. To me rich is not panicking when you get your electric bill, not needing to check your bank balance before you go grocery shopping, doing the weekly shop at waitrose, buying your dc's clothes from boden.

Beautga · 07/06/2019 21:20

I have been to Mauritius going to Canada for 3 weeks
Than at Winter have a holiday to Australia and New Zealand. We own our home and have a holiday home .I would say we are comfortable

Scotland32 · 07/06/2019 21:27

What do you do for a living Beaker?

breaker · 07/06/2019 21:29

It's all upthread @Scotland32

Justaboy · 07/06/2019 21:34

Asset rich here but cash poor, there are a few around like that house 1.7 mill almost paid for rented manors around appx 1.8 mill income around 100 K but single income. Need a woman round lieke Sharon White ex ofcom now running John Lewis on a mill a year:)

Shes done well for herself !

PooWillyBumBum · 07/06/2019 21:44

I’ve never really thought about it. We have similar salaries to you OP but about to take on a much bigger mortgage (360 on a house we are buying for 550 which is a WRECK but on an amazing private road)

We feel...comfortable. I can’t have fancy cars and a lovely house and designer gear and amazing hols but I can choose one or two priorities and that makes me feel lucky.

Rich to me is probably outgoings vs incomings (the dickens quote springs to mind). It’s something I’m very focused on because we are 28 and the way things are going my generation will be working until we are 75 if we aren’t savvy with retirement savings!

Tinkerbelle57 · 07/06/2019 22:01

I find this talk of money vulgar.
If your household is earning 150k and you have no children then you are doing well. You are in the higher bracket and should think yourself lucky.

To people on low incomes that are struggling, your comment hits a nerve.

I have had friends and family with health problems and pass away. Their money doesn’t help!!
I consider myself ‘rich’ in health because I don’t have those problems.

myfaceisamask · 07/06/2019 22:02

Well done OP. I come from an affluent background, private education etc, but married a penniless man for love. DH has a PHD, I have a Masters and we have 2 DCs. Despite working all my married life we earn 42k between us. We own our modest home outright, have no debts and 2 dcs who love us, 1 has just finished Uni and was supported by us throughout. Having not had to worry about money growing up, to watching that spreadsheet conscientiously as an adult, I actually feel richer and far more alive now. Might sound crazy but I am pretty happy with my lot.

Bunter888 · 07/06/2019 22:16

Rich is anywhere north of 10 million quid and being unable to be sure what you are worth in first place

woofmachine · 07/06/2019 22:26

work in a restaurant next to Porsche garage , cars that are worth more than my house, household income less than average wage so hard work not relative to earnings. IMO OP is very well off but not rich , feel that some PP's are a bit out of touch with reality talking about needing to budget their 6 figure salary while huge numbers of the country are using food banks.

beingmum39 · 07/06/2019 22:26

Wish I hadn't started reading this post... Feel like I am very poor as on maternity leave and just about to go from statutory to zilch financially.. however I have something way better than money that has made my life feel richer than it ever has... My baby son. X

celticprincess · 07/06/2019 22:28

@Imoen so you don’t think a household income of £150k is rich! Wow. I am a single parent with an income of £14k, a mortgage in negative equity. I believe you are rich. I believe even the likes of celebrities who are rich still worry about working. Many of them have gone from being millionaires to having nothing. Those who have family money handed down and don’t have to work are rich without the worries but you and your £150k are still rich but work hard to achieve it.

TeacupDrama · 07/06/2019 22:31

@elliejjtiny I agree with you, though I might call it comfortable and add on being able to run a car and if your boiler breaks you can get it replaced
It has been said many times on thread that average salary is 29K going up to 35K if you only count full time work,, the vast majority of people 82% in fact live on less than 50K, those at bottom end certainly have a struggle but 82% of are not living in poverty or anything like it; the vast majority of people on 50K have adequate housing enough food, fuel etc most people on this can also afford 1 holiday,r and most run a car and dine out occasionally and buy kids clothes and presents we do all this on much less but you can't get people to believe that you can have a really nice life on less than 50K

@beautga you are rich, you are way more than comfortable to say you are not rich when in the top 1% is disingenuous to say the least,

Wealth income can be measured objectively and be put into centiles, the guardian says that 130K is the top 1% and is the super rich, according to them rich (top 10%) starts at about 85K and comfortable at 65K(top 25%), the squeezed middle is 30-65K, 20-30K is just about managing, 12-20K struggling; below 12k poverty

Anyone who can afford to educate their children privately is rich, even the cheapest school is about 10,000 a year which comes out of taxed income, while some people might sacrifice other things for the education like holidays, a bigger house the vast majority could not do this however economical there other choices were, to have a spare 10K a year around after paying for essentials is rich, OK once you have paid for th education you might not have much spare on top but if you feel poor or just managing on 80K+ it is because of lifestyle choices not because 80K is not enough for a nice life as even in London that is double what the average Londoner earns

before I married I was in the guardian rich category and I felt rich on 80K I could dine out in nice restaurants every week, go on holiday 3-4 times a year, my mortgage was paid off I had a nice car, I could be generous to my parents, siblings, charities and the church. I never had designer tastes so never spent more than £80-90 on a bag, but I had nice clothes Hobbs etc,

now I have down sized career ( though will have good pension which I can take at 60) and we manage easily on less than half that, and still have a nice life

Last year the three of us went to Italy (near venice ) for a week on a budget of less than £1200 for the three of us; staying in a nice apartment on mainland hiring a car, cheap flights and dining out, we run 2 cars albeit older ones that DH can fix, DD goes to tennis, swimming and youth club, we can't afford private education or to go on long haul holidays but we can afford to fix boiler, shop for some things at Waitrose, we don't worry about bills or heating, we don't buy designer clothes neither do we need to buy in Primark, of course we can't dine out as often or as high end as I did but it's not the chippy or McDonalds either, we do have savings for larger emergencies like needing a new car but all the normal yearly costs ( including holidays, insurance celebrations, presents etc ) of living are easily met out of an average income; On some things we are lucky I took out a 25 year mortgage age 23 which is paid off, we don't live in London, but also we are fairly astute with money and have neither wasted it on smoking, alcohol, betting, designer gear or replacing things just for the sake of it

Stillneedwillpower · 07/06/2019 22:35

To me, being rich would be never needing to look at the price tag and just buying what you need/want when you need it; being able to afford private education and university fees, to be able to go away yearly and to not worry about bills or retirement.

Absolutepowercorrupts · 07/06/2019 22:43

@Incognitoo
If your DH sold his company for 40 million and paid 20 million in tax, then he's not a very good business man. Entrepreneurial relief tax is 10%. It comes into effect when you start up a business. So a tax advisor could have reduced his tax bill, nothing illegal but a proper use of U.K. tax laws. This is because a person starting a business takes a risk, sometimes a personal financial risk. They may have to remortgage their house several times to provide funds for the business.
Their wife named on the mortgage will have to take independent legal advice to ensure that the one looking for extended funds isn't doing anything illegal. The independent advisors will tell you not to do this. I always signed.
Can you tell that I've done that several times.
My DH's company employed 115 people and they were paid well above the minimum wage.
He sold the company a few years ago because he was approaching 65. It was sold for about 35 million. As a majority shareholder he received 11 million.
He has has enough money in the bank to never work again but he's invested about 20% of that into start up companies and is using his business acumen to help young businesses grow and create employment.
I would consider us to be very wealthy, I still do my weekly grocery shopping at Morrison's and I buy most of my clothes at Big Tesco's, anyone in or about South Manchester will get this reference to Big Tesco's. I don't consider the money to be 'our' money. It's always been his. He does tell me that it's all in joint names, and yes it is!
I think the point I'm attempting to make is that having that fucking humongous amount of money doesn't make a day to day difference to me. I have the total luxury of never having to check prices or to try and decide which items should take priority this week. I also have the safety of knowing that my card will never be declined.
I was a single parent for many years before I met my DH, I remember the all the meals with cheese for some protein, this was 40 years ago! I also remember having to stuff the gaps in the windows with anything I could find to stop the wind coming in. I've been on one side and I prefer this side.

CordeliaGoode · 07/06/2019 23:06

Weird flex but ok.

tryinghardnottocry · 07/06/2019 23:44

Another crude rule of thumb is

Take you yearly needs for your lifestyle and multiple it by something between 20-25 ( 20 if near retirement 25 if sub 40 yrs of age ) if you have more capital than that figure (excluding your home )then I would say that person is rich

Assuming a good life style needs say £100k then to be rich I would estimate £2.25million plus your home owned outright

tryinghardnottocry · 07/06/2019 23:48

If you have a very good income but low levels of capital I do not think you can deem yourself rich as your whole lifestyle could disappear in the twinkling of an eye - ring rich is being comfortable and being comfortable is not having the worry of your job/business being continuous

expat101 · 08/06/2019 01:09

I'm currently reading a biography of a multi-billionaire who learnt his business acumen at the foot of his Father, business associates/employees and private school social circle. Some of the financial commissions his businesses have paid to conduct transactions and trade are truly staggering.

Currently has another boat being built that has gone way over budget, owns homes around the world and has his own private jet.

That's rich.

Saracen · 08/06/2019 01:14

Our household income is a small fraction of yours, OP, but I feel rich.

I class "rich" as free from stress and worry about money. For more than a decade, I have never once:

had to pay a bill late, or even wonder how I would pay all the bills this month,
had my bank account go into the red,
been even close to having no food in the house,
worried about what would happen if my DH got injured and couldn't work for a few months,
thought my teen should postpone education in order to contribute financially to the household,
decided to stay home from an outing because I couldn't pay the bus fare or petrol.

So I think I am rich compared with most people in this country. I think I am fabulously rich compared with many people in other countries.

BitOfFun · 08/06/2019 01:31

If you have a very good income but low levels of capital I do not think you can deem yourself rich as your whole lifestyle could disappear in the twinkling of an eye - ring rich is being comfortable and being comfortable is not having the worry of your job/business being continuous.

I disagree. That's still rich.

I don't see anybody poor claiming not to be poor, just because "This time next year, Rodney, we could be millionaires!"

jcyclops · 08/06/2019 01:49

HMRC data gives 90k salary as 96th percentile and 60k as 91st percentile for income. This means you are VERY high income, but doesn't mean you are rich yet. Wealth depends largely on your age, but you are well on the way to being rich. (eg. two 22yo graduates in the first year of employment with student loans, a big mortgage and only 10% equity in their house are not rich even at your level of income). Household wealth (excluding pension pot) of £650k is 80th percentile, and £1015k is 90th percentile. Amazingly this means 10% of UK households are millionaires - mainly due to house prices.

jade9390 · 08/06/2019 01:56

You have a high salary and low mortgage. You are not a millionaire but could be in the future. You are rich, most people at your life stage cannot even get a mortgage and have to fret over every penny.

MissAngie · 08/06/2019 02:06

No you are not rich

Rich is having a diverse portfolio of investments and having a high income from variety of sources.

It is not having a job and getting a salary. It is beyond this.

SkinnyPete · 08/06/2019 02:11

OP is not rich, but very comfortable.

Poor > Struggling > Breaking Even > Comfortable > Wealthy > Rich

OP is very comfortable, and with time and focus could be wealthy (very wealthy).

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