What income do you consider rich?

[Believer99]

Interested to know what household income is considered rich.
When I was younger (19) I remember telling my BF when he earns over 30k il be a SAHM 😳 because I considered that to be an awful lot of money

Now we are older & earning more of course my perspective has changed, I would probably consider a household income of over 120k rich now we live in the north of England.

There are some eye watering figures on here, yet many are still failing to acknowledge this!

We both earn average UK salaries (£30k) and I'm part-time. Two kids, decent chunk of mortgage left, yet consider ourselves comfortable. We are in a fortunate position.

In my early 20s, when I was on 6k, I had to take a week off work as I couldn't afford to get there! I By comparison, I feel quite rich now. Growing up, we didn't have much either. Maybe if you experience this, you are grateful.

Yet, I'm struggling to feel anything for those posting on here with HUGE figures, failing to see how well off they are.

@Alonelonelylonersbadidea

Our household income 180k but we are definitely not rich 😫

Are you being sarcastic?

@HalfShrunkMoreToGo

I consider my salary to be almost embarrassingly big, I'd never tell anyone in real life how much I earn, but I think that's mainly because I've gone from £38k to £80k over the last 18months and can't quite grasp the increase yet.

Congratulations!! That’s brilliant!!! X

I think it’s partly a mindset. I feel we’re really well off because we have savings that mean we can afford to solve most problems that could be solved by money. Having grown up with a childhood where that was never the case, it feels very comfortable. If the washing machine needs repairing or replacing, it’s annoying in its own right, but it won’t mean we have to cut back on food or leave the children in clothes or shoes that are too small.
Our household income is nowhere near the levels a lot of people have mentioned on this thread, but it’s more than enough for us. That said, I have cheap tastes and don’t hanker after most things associated with being rich.

@Avarua

Rich people don't earn a salary, they earn income from investments. If you're tied to a job, you're not remotely rich. For that reason net assets should be the comparator, not income. I'd say net assets of £2 million makes you rich. Gives income of £80k per year, enough to cover fairly basic household expenses.

This works at the other end of the scale- 2 families with t same net income, 1 from universal credit, 1 from salary- the salaries family are paying the same in mortgage as the uc family do in rent. Technically the same income, but one family can invest. Same with savings- 1 family has a cap on savings and so past a certain point needs to spend monthly, but the other can build up an emergency buffer and buy longer lasting goods less often. Ability to invest is the key to being rich as it offers a security that income doesn’t. Isn’t there some data about the same rich families owning the same massive proportion of land now as they did when land tax records started out?

@DeliaDinglehopper 5 kids mainly.
Reap what you sow I guess.

I am hoping it eases with time. I honestly don't know how we managed when we had less nor how people afford kids generally.

@Santastuckincustoms
“(combined income of £170k) We don't eat things like lamb or salmon or drink alcohol as they're too expensive.”

You choose not to eat lamb and salmon as you feel they’re expensive and want to spend your money on other things or save it… but you could eat it for breakfast, lunch and tea and offer guests platters of it. That’s not evidence of not being well off. Everyone has their own priorities.

I honestly don't know how we managed when we had less nor how people afford kids generally.

It's funny how how perceptions change. When we had our eldest we were on benefits, very low income, but I swear now as higher earners (above average) I worry about money more now, I want to do more with it. I've lost perspective I think.

@DaisyDozyDee

I think it’s partly a mindset. I feel we’re really well off because we have savings that mean we can afford to solve most problems that could be solved by money. Having grown up with a childhood where that was never the case, it feels very comfortable. If the washing machine needs repairing or replacing, it’s annoying in its own right, but it won’t mean we have to cut back on food or leave the children in clothes or shoes that are too small. Our household income is nowhere near the levels a lot of people have mentioned on this thread, but it’s more than enough for us. That said, I have cheap tastes and don’t hanker after most things associated with being rich.

This really resonated for me. If the washing machine packed up, we have savings we could dip into and order a new one. We wouldn't have to save up for it, take a payday loan, or buy using an overpriced pay-per-week scheme. That's a very secure feeling.

I also love being able to go to Aldi & get a big shop, & just buy what we fancy. It doesn't have to be the cheapest version - we had their fancy range of fresh pasta for lunch a few times last week and they were lovely.

We mealplan loosely but its to prevent food waste, not because we need to stretch every penny. I still know the total to the nearest £ when we get to the tills though, force of habit!

We were very poor when DH moved in (I was a student, he'd just graduated and was getting unpaid work experience and doing the odd paid shift setting up stage equipment), luckily we lived above a Tesco Express so I'd nip down to buy the final reductions and work out how to make a meal out of them!

@user0176

I honestly don't know how we managed when we had less nor how people afford kids generally.

It's funny how how perceptions change. When we had our eldest we were on benefits, very low income, but I swear now as higher earners (above average) I worry about money more now, I want to do more with it. I've lost perspective I think.

I think the same goes for me

When I was at uni I couldn't afford to even eat and would sometimes go days without eating as I was paying extortionate nursery fees. I worked night shifts earning around 9k full time. I earn 10x that now.

I do need to regain perspective badly.

Joint income of over £80k and homeowner and a yearly holiday abroad.

@MiddleParking

Love all the six-figure-commanding galaxy brainers who think earnings that you spend on your house or lifestyle don’t count towards your level of wealth.

Because it doesnt!

Money spent towards the capital on your house is counting towards your wealth but lifestyle and interest do not.

Wealthy and rich are not the same. Most people do not understand the difference. But this thread is a perfect example with the pp who earns 180k but cant afford M&S clothes or salmon, and the pps who earn 50/60k who have millions in assets.

And for wealth there are some calculations which I found super interesting:

Take your age and times it by your pretax income. Then divide by 10 = the expected value of your networth for your age/ income
*Or for a household your average age x household income
ie. 30years old x £20000 salary = 600000 / 10 = £60000 expected networth

Now to the quartiles:
Take your current networth and divide it by your expected value.
ie. £50000 networth / £60000 expected = 0.83

A number bigger than 2 you are a super accumulator of wealth
A number between 1.99 - 0.51 you are an average accumulator of wealth
A number below 0.49 you are an under accumulator of wealth

I think this plays into the way in which aspiration works as a driver in a capitalist society.

We are generally driven to reach for things which are tantalisingly just beyond our grasp, always thinking that if we can just reach that goal on the distant horizon we’ll finally feel satisfied, happy, content.

But each horizon just brings a new horizon looming into view, and as you reach the point you imagined you were aiming for your focus shifts up to all those other interesting possibilities that you can now just about see in the distance - things that previously seemed so far away you never wasted your time even thinking about them.

A lot of people interpret “rich” as being an end point, the harbour where you finally drop anchor and no longer feel compelled to reach the next horizon. They might not know exactly where that harbour is, but as long as they keep sailing they know they haven’t reached it yet.

Of course that doesn’t describe everyone but I do think it is why for so many people “rich” means a state that is almost…almost attainable, but never attained.

What are you on about? You think because someone on the internet says “I earn £180k but can’t afford salmon” that that makes it a real thing? Dear me.

@DeliaDinglehopper

I think the question needs to be more like what do you think a rich persons lifestyle looks like?

Is it clothes from M&S and a bit of salmon, or is it multiple kids in private school, long haul holidays and top of the range cars. There’s a massive range of income in there.

That is a really good question.

I think it's paying for private schooling; long haul holiday more than once a year or costing more than 1k each if 'just' once; food shopping at M&S as standard; having a horse; driving a new car which costs over 25K to buy; buying clothes which cost over £100 for each item; having a house worth over twice the average in your area - but you could have some of those and not be rich (except school fees, you really do have to be well off to be paying those esp if for more than one child), it's being able to have most of these without going into debt which makes me think it's a rich lifestyle.

Nesbo it is like finding the end of the rainbow - always a little ahead.
Obviously we all can work out the median UK income and know if we are above or below although what is "rich" rather than just a bit more than average is something no one will agree upon.
I don't mind if anyone wants to say I am rich. I have a mortgage and virtually no savings but I have a nice house and earn a fair amount. I will work until I die but will get the state pension at age 67 and I have helped my 5 children buy a first property and with school and university costs.

I don't really check prices when food shopping and I know I am better off than many that I don't really need to do so. There is nothing I want that I cannot have (not least because I don't really want or need much).

My husband and I have a joint income of £350,000 a year. We have a fairly average 4 bedroom semi-detached house in South London, two kids in private school and 2 good holidays per year. We don't have any cars and can only dream of a holiday home. We shop in Aldi and rarely go out. Only fly first class on points. The good thing is that we only have a small mortgage left. Pretty much everyone in our postcode live like this, and we don't consider ourselves rich in any way. It is fairly difficult to save off that amount, once tax is taken off. I would say rich is someone with a net worth around £5m mark, ours is only c. £2m

This is all confusing me as salary mean nothing - it's take home pay that counts.

I would need £10k a month to feel secure. £20k a month would make me feel rich!

We currently bring home about £3k a month. We are not rich in the slightest. If we go to Costa with the kids, we only buy drinks for them and have a sip, can't afford our own! Not been abroad for 10 years. Shop in Aldi. etc.

All depends on your outgoings and debts doesn't it?

@Nesbo

I think this plays into the way in which aspiration works as a driver in a capitalist society.

We are generally driven to reach for things which are tantalisingly just beyond our grasp, always thinking that if we can just reach that goal on the distant horizon we’ll finally feel satisfied, happy, content.

But each horizon just brings a new horizon looming into view, and as you reach the point you imagined you were aiming for your focus shifts up to all those other interesting possibilities that you can now just about see in the distance - things that previously seemed so far away you never wasted your time even thinking about them.

A lot of people interpret “rich” as being an end point, the harbour where you finally drop anchor and no longer feel compelled to reach the next horizon. They might not know exactly where that harbour is, but as long as they keep sailing they know they haven’t reached it yet.

Of course that doesn’t describe everyone but I do think it is why for so many people “rich” means a state that is almost…almost attainable, but never attained.

That's interesting and very true. Unless you have vast amounts of wealth there's always something else you could be doing with your money

Apprently if you go up or down a factor of 4 for any income, that's when you'll see the differences in lifestyles.

This is interesting as a comparator.

www.gapminder.org/dollar-street

we don't consider ourselves rich in any way

I understand, it must be so distracting dreaming of a holiday home, and to only be able to fly first class by using loyalty points is a poor man's administrative task no person wants to have to have to bother themselves with, still needs must.

We have a joint income of 145k in a low tax jurisdiction. I don't consider us to be "rich". I only work 3 days a week and could earn more either going back full time, or going back to what I was doing pre-kids which would double my salary overnight, but also give me more than double the stress, effort and sleepless nights so I just don't want to!

I would describe us as "well off" but not "rich". A lot of my friends are earning 600k plus a year as a joint household income.

However, I am not that bothered these days. As long as we have a nice house, can buy what we want at the supermarket (within reason, I mean we're not able to stick bottles of cristal in the trolley but then again, I wouldn't want to), can eat out when we fancy and can go on 2 or 3 nice holidays a year, beyond that, I am not really bothered. We drive old cars (2004 & 2009) and aren't extravagant spenders. Most of our money goes on food (nice for home and eating out), the children and holidays.

This thread is so odd with People on 60k salary saying that they feel rich because their income is smaller than their outgoings. Don't know which assets and investments you have, but if losing your job would put you in a financially precarious position after only 6 months for example, then you likely aren't rich.

To use the word "rich" I assumed this meant a far above average lifestyle.

3 kids in private school is at a minimum already 45k/year. Mortgage on a £1m house (not even huge in London) with a 25% deposit is probably in the region of 3-4K/month so how can someone be rich on £60k??

Net assets is also a better measure than income. 30k is only an average salary if your ignore all self employed, business owners, equity partners etc.

To: user0176
Haha! Love your SOH. Not complaining in any way, we are very happy, just perhaps making a point that even a fairly high income doesn't go that far in London, and doesn't buy you things that many people would consider indicative of a lifestyle for someone who is wealthy.