What It Takes to Be Rich—Where You Live

Feeling rich

My husband I were fortunate enough to find jobs right out of college. At the moment we are living rent free in my parent's second home. We both have jobs in education, but since we don't have to pay rent, we're each able to save over $1,500 per month. In addition I bike to work while my husband drives our car. I would advise newly weds to try to cut corners as much as possible, even if it means living with the folks for a while. Although our salaries are definitely not in the "rich" range, we're able to save quite a bit of money.

mrsh of IL @ Jun 28, 2009 22:00:06 PM

drop out!

To all those people who say that they make over $200K and still are not rich, STOP SPENDING SO MUCH! You can probably make due with alot less! Make dinner at home, don't buy the latest trends, "make do" a 42" flat screen rather than upgrading to 60+", stop buying your lattes...

Liz M of NC @ Jun 27, 2009 10:50:52 AM

Ridiculous....

Let me start by saying that I am a proud American, I believe in capitalism, democracy and that every American has the responsibility to pay taxes.

My issue is that the more we earn, the less we take home. I thought the "American Dream" always entailed: education, hard work, desire to achieve and then receiving the ultimate monitary reward that comes from all of that deidication to excellence.

I'm a 30 something business executive, married to a woman who works hard and who also earns a nice income. Together, we clear 200k a year gross......so we should be in great financial shape right?

Wrong.

After our: 401k, extortionate health care costs (the more you earn, the more that comes out of your check), felxible healthcare spending, federal & state taxes, FICA and medicare...we see less than 60% of our gross earnings in our wallets. To me, this is not the picture of the American Dream in reality.

I'm not complaining, though it may sound like it, but this is a valid frustration. If I chose to skip college, land a mediocre job with a mediocre salary and very little responsibility...then I would expect that true wealth might be difficult to achieve. However, I feel like imposing a hefty tax based on each individuals earnings is fundamentally wrong and that a FLAT TAX IS A MUCH more equitable approach.

Think about it: I have no kids in public schools, I don't drive (as I live and work in Washington D.C.) and feel less of a responsibility to pay my tax dollards towards educational or highway expansion programs. As I pay an arm and a leg for my wife and I to be 100% covered by insurance....I also see no reason to pay extra for any government backed healthcare initiatives. I have no real card debt (though my credit cards are starting to lower my limits due to other reckless spenders), mortgages are harder to get than ever (again due to other reckless fools who bought more than they could afford and are now in foreclosure) and I get hammered on my taxes every year!?!?

Why should I shell out 40% of my take home pay for being responsible, hard working, educated, environmentally conscious while lower income earners emjoy a great proportion of their take home pay and find themselves eligible for public funding, taken directly from MY hard earned dollars?

20% across the board Obama....don't make those of us who have put in the late hours at the office suffer more financially than those who have chosen a lesser standard of responsibility, education, work ethic and dedication to achievement.

For what it's worth....

BobbyBoy of DC @ Apr 17, 2009 01:24:10 AM

What is rich

I think the article is interesting but flawed.

I think being rich means living off your wealth, not necessarily earning a salary. It's the life style of being able to have whatever you want whenever you want it. NOT the millionaire next door who put away every penny he has but lives like a bum.

It's very important to take the cost of living into account when doing these measures as it is taking the number of family members so I think it's good to make the city comparison. $250k goes a lot further in Omaha than San Francisco. The new taxes should take this into account. The federal government has locality pay for people who live in different areas and they should have locality adjustments for taxes as well.

My husband and I are middle age professionals, no children left, earning over $250k in Washington, DC. We work all the time. We own one nice car, a mediocre house in a marginal neighborhood that would sell for probably $600k or more even in today's market.

We work our asses off. We are not rich in lifestyle. We are okay and I can't complain but I have to plan for what we spend on. I don't eat out all the time or travel everywhere. I have an 8 year old used Chevy. I shop at Stein Mart for the clothes I must wear to my professional job. I work at night and on weekends to earn extra money. I work a second job. I do not feel rich. I feel like I have to work this hard to live in Washington, DC and to have any quality of life at all.

And yet, I work so hard, I have no quality of life at all....

It's like being on a hamster wheel. We don't have many expenses other than a reasonable mortgage, no credit card debt. Yet, we are not well off.

Seems like much of my income goes into taxes and I never see this. Federal and DC Income tax, Social security, property tax, sales tax, plus retirement. Once these are taken care of, there really isn't that much left for us to live on.

I am willing to pay the taxes to help my country. I do not want it to go to pay for a war in Iraq or any other frivolous "causes." If it will really help us get out of this mess we're in, I don't mind working harder to help. I don't mind making additional sacrifices if it will fix this and make us better off in the future. At least I am able to work hard and help.

Since when did we become a nation of self-serving, self-centered, uncaring people? Since when are we not suppose to help each other? Since when did rich people decide they don't have to pay MORE than poor people since that is both fair and appropriate?

I frankly can make some sacrifices if it's for the common good. I wish I could do more and was asked to do more. Even if I'm not really rich.

MW of DC @ Mar 12, 2009 17:17:10 PM

Curious

I'm curious HOW much money Tony brings home every two weeks? Strike that, how much does he earn? Strike that. How much does he invest?

Heather of OH @ Mar 12, 2009 08:01:36 AM

All here

Good afternoon. It is curious that physical courage should be so common in the world and moral courage so rare.

I am from Finland and bad know English, give please true I wrote the following sentence: "But I smoked pot a week ago? Find the answer to this question and millions more on yahoo! Answers."

Regards :P Midori.

Midori of IL @ Feb 15, 2009 14:29:37 PM

Ooops, my bad...

Turns out the ugly, anti-God comments were actually from "Eric of Indiana"

You Sir, Eric, are a total loser!

Tony of OH @ Feb 12, 2009 12:51:36 PM

Geez, why'd you have to "go there"?

Mr. Newman, your facts and data presented here are very informative and interesting. Great work with the number-crunching.

However, your nasty, cynical spewage about God and churches is completely unnecessary. It actually harms your credibility.

You may have all the right stats & figures to inform us about wealth, but...why would I want to be "educated" by a closed-minded, intolerant religious bigot who masquerades as a U.S. News journalist?

Tony of OH @ Feb 12, 2009 12:49:03 PM