How much money do you need to make per year to be rich in the U.S.? Americans chime in with some intriguing and polarizing points of view.
Note: Some quotes in this piece have been lightly edited for grammar.
A Wide Range
The top 1% of Americans make $650,000 per year, while the top 10% make $170,000, according to a foreigner who posted in an online forum based on data they saw. “Don’t get me wrong,” they say, “[That’s] a lot of money.” However, they would have guessed a “rich” American would have to make more to be classified as such.
It led them to this question: How much money does an American need to make per year to be rich?
It’s Relative
“I know [people in the] top 1% that don’t consider themselves rich,” says one American. They argue that being rich is “relative to your surroundings and who people tend to surround themselves with.”
Adjustments
A salary is just a number until you adjust for age and location, offers one commenter. “$170k at 24 is a lot different than at 60.”
Income vs Net Wealth
An American responded that being rich in the U.S. is independent of salary. “Rich isn’t based on income,” they say. “Net wealth/worth is a far more useful statistic.”
Touché
“Yeah,” agrees another commenter. “To me, ‘rich’ means you can retire today and maintain at least an upper-middle-class lifestyle.”
Millions Talk
“When you have approximately $5 million in investments and are able to live a middle-class lifestyle just on returns, I’d say that’s rich,” says an American. They acknowledge that “an argument could be made for $2.5 million.”
Thousands Are for the Birds
To one commenter, even a $650,000 salary is puny. A $1 million annual household income or $10 million in net worth makes an American rich, they say.
The King of Investments
Ever wondered how much Warren Buffet makes? A mere $100,000 per year, according to one person. They explain, “A lot of ‘rich’ people don’t have any salary. All of their wealth comes from investments and capital holdings.”
Location, Location, Location
Location plays a massive role in whether or not someone makes a “rich” salary. “$170K in Manhattan is not much,” says an American. On the flip side, “$170K in Mobile, Alabama is balling.”
Comparison Game
“Wealthy people tend to know others who are even wealthier,” observes a commenter. “A guy with a $10 million net worth likely knows a guy with a $100 million net worth, and that guy likely knows a billionaire. The ‘rich guys’ are always someone else.”
Don’t Sneeze, But
One American would never “sneeze at” a $170,000 annual salary. But for most places in the U.S., they argue that “it’s by no means rich.” They stand firm that “Someone in the top 10% of income is not the same as [someone in the] top 10% of wealth.”
Rich to Me
To one American, claiming the title of rich “means you could survive without working.” They point out that people with high salaries can spend it all, making them live paycheck to paycheck. Their conclusion? “Someone who has enough investments that they can live off the investments is rich.”
Who’s Working for Who?
$170,000 is nowhere near rich in one person’s eyes. Their definition of rich? “When your money works for you instead of you working for your money, that’s rich.”
Lifestyle Matters
Having an extravagant lifestyle that someone can afford makes someone rich, according to one commenter. They emphasize the affordability part, implying that overextending oneself takes away their rich status.
Case in Point
Another person shared that they knew a couple with all the bells and whistles of the “ideal” American lifestyle: A big house, multiple Mercedes, and sending their kids to private schools. The catch? “They still lost their house when he lost his job.”
To them, “being actually rich means you don’t have to work if you don’t want to. Ever.”
Hear Me Out
“Imagine making 200k a year but having 250k worth of expenses,” says a finance wiz. “You’re dirt poor.”
A Theory
To a philosophical American, being rich is a matter of perception. “I have a theory that most people consider ‘the rich’ as those who make twice as much as they do, and ‘the poor’ as those who make half as much as they do.”
Source: Reddit.
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