Author Topic: Here’s the net worth Americans say you need to be considered wealthy  (Read 3735 times)

IroNat

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Chump change for Getbiggers.  You can't even buy a decent helicopter for that.

>

https://www.cnbc.com/2021/05/12/net-worth-to-be-considered-wealthy-in-2021.html

"Here’s the net worth each generation says you need to be considered wealthy in 2021:

    Millennials (ages 24 to 39): $1.4 million
    Gen X (ages 44 to 55): $1.9 million
    Baby boomers (ages 56 to 74): $2.5 million"

mphgrove

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Chump change for Getbiggers.  You can't even buy a decent helicopter for that.

>

https://www.cnbc.com/2021/05/12/net-worth-to-be-considered-wealthy-in-2021.html

"Here’s the net worth each generation says you need to be considered wealthy in 2021:

    Millennials (ages 24 to 39): $1.4 million
    Gen X (ages 44 to 55): $1.9 million
    Baby boomers (ages 56 to 74): $2.5 million"

Biggest question that comes to mind when discussing net worth is whether the house you own and live in is part of it or not. The Federal Reserve says yes. Most investment advisors, who are only interested in getting hold of your cash, say no. If included, people in California would therefore say you need 3 or 4 million to be rich, where in West Virginia it might be 1 to 2 million. Although the Californians do end up actually quite rich when they sell their houses and move to Texas (which argues for including home value in net worth).

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Biggest question that comes to mind when discussing net worth is whether the house you own and live in is part of it or not. The Federal Reserve says yes. Most investment advisors, who are only interested in getting hold of your cash, say no. If included, people in California would therefore say you need 3 or 4 million to be rich, where in West Virginia it might be 1 to 2 million. Although the Californians do end up pretty rich when they sell their houses and move to Texas, for example (which argues for including home value in net worth).


Because almost everybody buys as much house as the bank will allow them...has a 30 year mcmansion mortgage up to their necks and taxes and maintenance - most housing situations are not that positive as far as being an investment.

If you are in a paid off position obviously that is different.

I have seen rural acreage double in the last 10 years, that has been a wealth builder.

bigkid

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Because almost everybody buys as much house as the bank will allow them...has a 30 year mcmansion mortgage up to their necks and taxes and maintenance - most housing situations are not that positive as far as being an investment.

If you are in a paid off position obviously that is different.

I have seen rural acreage double in the last 10 years, that has been a wealth builder.
Rural land up 100% in 10 years but the S&P is up 271% in the same time with the dividends reinvested.  Also, I don't know who they surveyed.  A couple million bucks doesn't make you wealthy imo.  I'd say 10 and above.

Humble Narcissist

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Biggest question that comes to mind when discussing net worth is whether the house you own and live in is part of it or not. The Federal Reserve says yes. Most investment advisors, who are only interested in getting hold of your cash, say no. If included, people in California would therefore say you need 3 or 4 million to be rich, where in West Virginia it might be 1 to 2 million. Although the Californians do end up actually quite rich when they sell their houses and move to Texas (which argues for including home value in net worth).
A paid off house is the 1st step to wealth along with no credit card debt.  When those along with a solid gold star health insurance plan are had you are in good shape.

Henda

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One more rep made a great post about wealth and what it really is in another thread I forget which but well worth a read

There are many people stuck in a job they hate getting spoken too like absolute shit by some useless cunt who they would batter half to death outside of work but have to nod and smile politely and do exactly as he says or the whole house of cards falls, the  massive mortgaged house, cars on tick ect all gone. Get to a point in life when you can tell anyone you like to go fuck themselves without losing everything you “have” then you can be wealthy with little money as you can feel truly free in life

mphgrove

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Rural land up 100% in 10 years but the S&P is up 271% in the same time with the dividends reinvested.  Also, I don't know who they surveyed.  A couple million bucks doesn't make you wealthy imo.  I'd say 10 and above.

$10,000,000 is a ridiculous number. If you put $10,000,000 into the Net Worth Calculator (even including your primary residence), it comes out to 1 person in every 200. There are tons more rich people walking around in America than just that. And the US is WAY wealthier than all but a very few countries in the world. The survey range quoted above may be on the low side but I would say 3 or 4 million on the Coasts and maybe around 3 or a bit lower elsewhere in US.

https://dqydj.com/net-worth-percentile-calculator-united-states/

Hypertrophy

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Rural land up 100% in 10 years but the S&P is up 271% in the same time with the dividends reinvested.  Also, I don't know who they surveyed.  A couple million bucks doesn't make you wealthy imo.  I'd say 10 and above.


Being independent makes you wealthy- and it doesn't have to be money.

mphgrove

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Being independent makes you wealthy- and it doesn't have to be money.

Agree, a female friend is quite wealthy and working into her 70s. “I need my huge salary to keep up my elaborate lifestyle” (my spin on her words). I call that a trap. Also, do 2 person couples really need to wander around in Mega Mansions (I know several of those people)?  Also a trap. A two bedroom condo would do just fine.

IroNat

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One more rep made a great post about wealth and what it really is in another thread I forget which but well worth a read

There are many people stuck in a job they hate getting spoken too like absolute shit by some useless cunt who they would batter half to death outside of work but have to nod and smile politely and do exactly as he says or the whole house of cards falls, the  massive mortgaged house, cars on tick ect all gone. Get to a point in life when you can tell anyone you like to go fuck themselves without losing everything you “have” then you can be wealthy with little money as you can feel truly free in life

Truth brother.

I call it "walk away money".

As in " F*ck you, I quit!".

Having WAM allows you to ignore work a**holes too because you don't have worry about getting fired.

Hypertrophy

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Agree, a female friend is quite wealthy and working into her 70s. “I need my huge salary to keep up my elaborate lifestyle” (my spin on her words). I call that a trap. Also, do 2 person couples really need to wander around in Mega Mansions (I know several of those people)?  Also a trap. A two bedroom condo would do just fine.


Exactly! I quite working for others and started my own business some years ago. It was never about the money. I was sick and tired of having a "boss". I scaled things down, paid off my mortgage and pay cash whenever I can. It's amazing how little you actually need to be happy.

IroNat

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"I make myself wealthy by making my wants few." - Wise Man

bigkid

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$10,000,000 is a ridiculous number. If you put $10,000,000 into the Net Worth Calculator (even including your primary residence), it comes out to 1 person in every 200. There are tons more rich people walking around in America than just that. And the US is WAY wealthier than all but a very few countries in the world. The survey range quoted above may be on the low side but I would say 3 or 4 million on the Coasts and maybe around 3 or a bit lower elsewhere in US.

https://dqydj.com/net-worth-percentile-calculator-united-states/
You said rich, I said wealthy.  IMO there's a difference. Using your supplied calculator, $10,000,000 net worth comes out to the top 1.5% of people which would be 3 people per 200.  I'm 38 and my net worth is near 4 million.  I don't consider myself wealthy at all.  Wealthy to me is being able to not work and live a great life off the interest.  I live in Boca Raton, FL.  Maybe If I lived in some small town somewhere I would be considered wealthy but not here.

mphgrove

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You said rich, I said wealthy.  IMO there's a difference. Using your supplied calculator, $10,000,000 net worth comes out to the top 1.5% of people which would be 3 people per 200.  I'm 38 and my net worth is near 4 million.  I don't consider myself wealthy at all.  Wealthy to me is being able to not work and live a great life off the interest.  I live in Boca Raton, FL.  Maybe If I lived in some small town somewhere I would be considered wealthy but not here.

Well, to each his own perspective. You have obviously worked hard or been clever or lucky at your age. A hard working thirty something person with student debt hanging over their head and difficulty scrambling up their first down payment for a home of their own would obviously agree with the survey results more than with you (so would just about anybody else living outside the USA other than in Zurich or Geneva). Your arithmetic on the calculator seems wrong. I have put in $10,000,000 a couple of times now to re-test and I get 99.5 percentile which is one in 200.

SOMEPARTS

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"I make myself wealthy by making my wants few." - Wise Man


In the end, this is the truth. To be happy with what you have is very important.

You absolutely should work extremely hard at some point in your life to meet what your expectations are for standard of living. There are going to be some wins and losses in all that. BUT...at some point you get tired of pulling the cart -  and it shouldn't take until you are 70 to figure it out.




IroNat

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Even wealthy people will tell you they aren't wealthy.

They have $5 million but they look at the guy with $20 million and compare.

Even someone with $50 million compares himself to the guy with $100 million who has a bigger house, etc.

A couple makes $500k a year and they live paycheck to paycheck.  Idiots.

It's a futile way to value yourself.


Kwon

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Even wealthy people will tell you they aren't wealthy.

They have $5 million but they look at the guy with $20 million and compare.

Even someone with $50 million compares himself to the guy with $100 million who has a bigger house, etc.

A couple makes $500k a year and they live paycheck to paycheck.  Idiots.

It's a futile way to value yourself.

Wonder if Bill Gates, Jeff Bezos, Elon Musk, Goodrum C.E.O, MSN, H.I.P.P.O or Soul Crusher ever compare themselves with other billionaires?
Q

IroNat

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Wonder if Bill Gates, Jeff Bezos, Elon Musk, Goodrum C.E.O, MSN, H.I.P.P.O or Soul Crusher ever compare themselves with other billionaires?

Absolutely they do.

Humble Narcissist

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Wonder if Bill Gates, Jeff Bezos, Elon Musk, Goodrum C.E.O, MSN, H.I.P.P.O or Soul Crusher ever compare themselves with other billionaires?
They all know they are inferior to Goodrum.

deadz

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Body-Buildah

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Pay off everything, debt sucks. Glad I have zero...

bigkid

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Well, to each his own perspective. You have obviously worked hard or been clever or lucky at your age. A hard working thirty something person with student debt hanging over their head and difficulty scrambling up their first down payment for a home of their own would obviously agree with the survey results more than with you (so would just about anybody else living outside the USA other than in Zurich or Geneva). Your arithmetic on the calculator seems wrong. I have put in $10,000,000 a couple of times now to re-test and I get 99.5 percentile which is one in 200.
I did $10,000,000 net worth with home equity and it gave me 98.5%.  Anyways, I'd say hard work, being clever and luck all factored into my success so far.  Things that helped:

No student debt:  Went to a state school for free.  I qualified for a 100% scholarship through FL's bright futures program.  Also, my mom, when I was a kid had purchased FL Prepaid program which locks you in for 120 credit hours at a low rate.  She paid something like $3500 for the plan.  Which ended up being a steal.  So basically I had college paid for twice which allowed me to use the extra scholarship money for living expenses and food.  I also finished in 4 years.  Didn't fuck around like other people in my family who spend 6-7 years earning a bachelors.

Delayed gratification:  I didn't do a whole lot my first 5 or so years out of college.  Didn't travel.  Didn't go out to eat often. I had moved away from friends for a job, so i didn't have a lot of options. Literally just saved every dime I could and put it in equities.  I also didn't have any real serious girlfriends for probably 4 years after college.  So i wasn't spending money on a significant other.

Real estate:  This is part luck bc of the timing.  By the time I had saved enough money to afford a down payment for a house, it was 2010.  The bubble had popped and properties were cheap.  I bought the most expensive place i could afford.  It was 227K townhouse short sale that had sold for 575k 26 months earlier.  I was so proud to buy that place.  Since then, I've been able to pay it off.  It's now worth around 475K and i've got in rented for 3k a month.  With that income, I was able to buy my primary residence. Which is now conservatively worth 400k more than I paid for it.  Sometimes you just get lucky.

Multiple streams of income:  I make decent money at my primary job.  175-200k a year.  It's solid not spectacular.  So I've got the rental property, I've also got my real estate license in 2011 when everyone was saying the market was dead and wouldn't recover for years.  I only do 2-3 deals a year but that usually nets me another 20-50k a year in extra income.  Early on I also helped people with training and diet plans for money, valeted cars for extra money etc. Just anything extra I could sock away.  I also invested in a friends business that has since taken off.  That pays me a nice piece of cash every year. Again, maybe that was lucky.  Born earlier, I could ahve been one of those people getting foreclosed on.

Stock market:  I've been through the high and the lows of the stock market.  I'm a conservative, steady investor.  I basically just buy the market every month or when I see a crazy dip, like what happened during the pandemic. I didn't have a lot of money to invest in 2009-10 when the market tanked but I had gotten myself to position where I could take advantage of the corona sell off.  I had already moved a bunch of money to cash before it struck and I was able to buy stocks for numbers I never thought possible.  That was significant to my net worth.

Now this is all great now.  If the market sells off and real estate crashes, my net worth could be cut in half but i have no debt, outside of my primary mortgage which is fairly small in comparison to most people.  Oh, I also drive a ford explorer.  No flashy cars for me yet.  My goal was to save, sacrifice and invest early.  Make my money work for me and then enjoy those fruits as I enter my 40's.  Hoping Biden doesn't ruin that shit with his moronic policies.

GymnJuice

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Pay off everything, debt sucks. Glad I have zero...

In the rational world this makes sense.  In bizarro lala land where loans magically disappear if you vote woke maybe you don't pay them off and invest in the market instead.  Who knows.

pamith

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I would say 10 million, srs

Army of One

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One more rep made a great post about wealth and what it really is in another thread I forget which but well worth a read

There are many people stuck in a job they hate getting spoken too like absolute shit by some useless cunt who they would batter half to death outside of work but have to nod and smile politely and do exactly as he says or the whole house of cards falls, the  massive mortgaged house, cars on tick ect all gone. Get to a point in life when you can tell anyone you like to go fuck themselves without losing everything you “have” then you can be wealthy with little money as you can feel truly free in life

this is a well used version of what real worth means now, seen in used many many places.Because its true."things" you get used to very quickly and they just end up weighing you down, no matter if its a  collection of watches or a multi million dollar home.True wealth is being able to do what you want, when you want, go where you want, without being tied down to a ton of thing that just become baggage you dont even appreciate anymore.Freedom from being a slave to someone or something.