Is it consider rich when you earn $240,000 per year?

[Anonymous]

[HighValue]

It can be. Debt to income ratio is what really matters though. Someone could make $240,000 per year, but their taxes, house payment, car payments, and other expenses are higher than their income, they would actually be poor.
A person could also make only $50,000 per year, have multiple deductions from having dependents, no car payment, and a low cost house payment, with no credit card debt and be doing very well.

$240,000 is a very large annual income, but it still comes down to income to debt ratio.

[ArrowheadSW]

Yeah definitely!

[ArrowheadSW]

There are people who make that much and they are broke. Or the only net savings that they have is their 401K. I knew a married couple who made between them, about $130K. (Far less than the $240K in this question.) But they had $100K in misc. consumer debt. You'd think they could make ends meet with $130K but they were not wise with their spending.

[HighValue]

@ArrowheadSW Yeah, I've had co-workers making around $50k per year and they were often broke because they bought new trucks between $55,000 to $65,000, plus still had house payments and other expenses. They were paying out almost everything they had each month.
I kept my same car that still works great since 2013 and I was able to completely pay off one credit card from before, pay down another one, and had $33,000 saved up when I left that job.

Income to debt ratio is very important, but most people don't seem to realize it. It is also much less stressful knowing that you could leave your job whenever you want and live for a year or more easily with no income before needing to get another job.

[ArrowheadSW]

@HighValue This particular couple was so clueless as to their personal finance situation. I usually am not so judgmental but it was just pathetic. So were so deep in debt, and they went out and bought an RV. And then, well, they just had to get a new pickup truck to tow it, that ran another $40K. All of it financed of course. They did manage to save $20K once, but instead of paying down debt, they bought all new flooring for their house. Only to sell the house 5 years later anyway.

[007kingifrit]

yes that is considered being in the top 1%

[WhatTheHeckkkk]

Lmao yeah that’s rich according to me.


Depends on your state and country I suppose. In some states, I wouldn’t be surprised if that was the average income.

[Shamalien]

In which state would that be the average income?

[WhatTheHeckkkk]

Didn’t say it was average, but I wouldn’t be surprised if it was an average for NY or CA in the next upcoming decade lol.

[Shamalien]

Debate ain’t your strong suit ;)

[WhatTheHeckkkk]

You’re right. I don’t like debating.

[Subarugirl]

If you make more that 160K a year as a family of three that puts you in the upper class.

[MrOracle]

Rich is when you earn $240,000 a year PASSIVELY, meaning that your investments generate income whether you work or not. Rich people are rich because they spend their money on investments that generate revenue, not because they earn a lot at their jobs (though they usually do that too).

[MTC29]

It depends on where you live. If you are earning $240K and living in Maryland, Massachusetts, New Jersey, California or Connecticut, you are living comfortably but not close to rich, especially in a major urban area like San Francisco.

On the flip side, if you are pulling down $240K and live in rural Mississippi, you might not "rich" but you're doing just fine.

[DaveJord]

It not poor, yes I used to earn $230K a year before retirement. I owned 4 x properties, bought brand new cars every 2 years, and traveled and still had about $6,000 a month to use as fuck off money. Net wroth was 1.8 Million. So yeah, its rich. Now I only make 120K in retirement without working, and only have 1 x properties and sold off everything in my divorce and my net worth is 600K. I only have about 2,000 a month in fuck off money and I buy a new car every 5 years.

[exitseven]

In most parts of the US it probably is but if you live in California or the Northeast it is middle class. Between the high cost of housing, all the taxes and other more expensive stuff like electricity and car insurance it is not rich. If you have one of two kids in college you might be just staying afloat.

[blissinanarchy1]

240,000$ yearly it's considered upperclass so yes I believe so. I think anything above 150,000$ is the highest class. Keep in mind the different costs of living in different areas. Even within the same state, like New York or Cali, costs of living may be absolutely huge for something that's be average in another state.

[Lliam]

Definitely. I mean, there are different levels of rich, but it puts you in the top 2%. If you manage your money properly and don't just blow it on unnecessary crap, you can live very, very comfortably and save for an early, comfortable retirement.

[MCheetah]

Yes. That's upper class. To be "rich," you just need to make $140K a year or more. Regardless of where you live.

[Ray1980]

I would consider a person rich when they become wise enough to live off their investments interest.

[Claudia233]

I'm not in USA and I earn $30,000 per year 😂😂😂 So... Yes!

[Sam_The_Savage]

I earn $6.00.000 yearly..


Should I consider rich? Lol

[Asker]

Go away troll

[Sam_The_Savage]

Lol it's truth... I'm trader. I earn easily that much. I can understand it's beyond your imagination level. But it's k. 😘

[888theGreat]

Depends on who you ask and where you live. DC , no. Democrats think you are and should be taxed more. California , no. Here where I live , you would upper middle class.

[ArrowheadSW]

LOL Yeah really... Depends on where you live. In some areas you'd need that much per year to afford a house and have a wife and two kids.

[TallAnon]

Depends how much of it you keep and how long you keep it up. If you have a 100k debt and only save 10k a year, you're pretty darn broke, especially if you quit/get fired after a year.

[In_Trance]

Not necessarily it depends on how much debt you're carrying

[jamesgoldman]

Sure unless you are 7/8 figures in debt

[Astarlessnightsky]

Sure.

[Anonymous]

How much do you get to take home?

[Jim___Blakes]

Which country

[Asker]

USA.

[Jim___Blakes]

That's rich

[Redstang88]

Yeah

[Fuentes]

Yesss

[jimmy2]

Not bad

[Anonymous]

Yup.