Being rich | Mumsnet (2024)

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What is considered being rich? ›

For example, you may be considered rich if you're in the nation's top 1% of earners. In 2022, that group saw an average annual income from wages of $785,968—nearly 19 times higher than the bottom 90%, according to the Economic Policy Institute Open in new tab.

Being rich may sound like the dream, but it's not a guarantee for long-term financial security. To truly secure your financial future, it's important to aim for wealth. Wealth provides a sense of financial freedom and stability that being rich cannot always offer.

While that much money provides financial security, it doesn't have the buying power that it used to. Some studies have even predicted that $1 million won't be enough for younger generations to retire on. We're all aware of inflation, especially after the sky-high inflation we endured in 2022.

Wealth gives us more options than we would have if we did not have wealth. Wealth is the power to turn goals into reality. It has the depth of possibility, opens up the world and has the power to enrich our lives and the lives of others around us, if used responsibly.

For most individuals and small families, the answer to “Is $100,000 a good salary?” is a resounding “yes.” Cost of living and family size can affect how far $100,000 will go, but generally speaking, you can live comfortably on $100,000 a year. Are you hoping to make the most of your salary?

In 2021, the median household income is roughly $68,000. An upper class income is usually considered at least 50% higher than the median household income. Therefore, an upper class income in America is $100,000 and higher. However, an upper class income also depends on where you live.

In fact, statistically, around 10% of retirees have $1 million or more in savings.

There are two approaches you could take. The first is increasing the amount you invest monthly. Bumping up your monthly contributions to $200 would put you over the $1 million mark. The other option would be to try to exceed a 7% annual return with your investments.

He argues that, in general, the more money you make, the more you already do for others, and that even an average wage earner is productively “giving back” to society just by doing her job. In addition, wealth liberates us to have the best chance of leading a life that's authentically our own.

Financial Security and Reduced Stress

One of the most obvious perks of getting wealth is the automatic removal of stress. It eliminates financial stress and people get economic stability in all aspects of life. The majority of the problems of grown-up adults revolve around money.

Why is it better to be rich than poor? ›

A study from the US shows that the difference in life expectancy between the poorest and richest one per cent of the income distribution was nearly 15 years for men and 10 years for women. While rich men lived to an average of 87.3 years, the poor lived to 72.7 years. Even a little more money leads to better health.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

The main measure of wealth is net worth: the total value of your household's assets (like houses and savings), minus debts (like mortgages and student loans).

When people talk about new money, they might think of individuals who've earned their wealth on their own. Entrepreneurs and moguls like Oprah Winfrey or Jeff Bezos are usually considered new money. They're self-made billionaires, having created their fortunes based on their own work rather than inheriting it.