How much money you have to earn to be considered rich in DFW? (Dallas: lease, car registration)

[UnfairPark]

Originally Posted by justsomeguy

$240k/month would make one comfortably upper middle class?? That would be extremely wealthy. Did you mean $24k/month?

What? $240K is extremely wealthy? On which planet? May be if no high income taxes, private school/colleges tuitions, property taxes, mortgages, insurance aren’t involved but otherwise it’s a struggle unless you inherited money or have a spouse who earns well but not on your own, it’s a struggle, may be a different struggle from a $24K one but just a different set of problems. It’s not like $240k income starts from year one of the job to last year, there are obviously years of less income, no job, unexpected expenses, illness and retirement etc on that journey.

[biafra4life]

Originally Posted by stargirl007

There's so many variables that it's impossible to really say. Professions, how much people want to keep up with the Jones', their age, etc....

I laugh at the guy that says the only people that make $300K+ around here are doctors, lawyer, C-level, people who got inheritance. You would be surprised at the growth of technology oriented businesses here in DFW. I sell enterprise software, whom often sell to those C-level people you would say are "rich" here. I took home almost $400K alone last year, and on an average year, I take home $200K plus but I also sell solutions that transform and provide enough efficiencies to some of the largest companies in the world many times over.

Looking at me on the street, the car I drive, watching me walk into my house, you would never think. I am on the younger side of my 30s and a millionaire technically. I know this is not going to last forever so I basically save every nickel & dime I can, and my top goal is the ability to retire by 55.

I have several colleagues, both in my company and others here in the area that are similar. But of course, I do know people around here that are taking 500-700-1m/year on a good year in SaaS and I think they are rich too.

Bottom line, who really cares what makes someone "rich" here, it really should be about living comfortably within your means, while also saving enough to build your longer-term future. I never felt like this was impossible when I was making $40-50k/year here, and I don't feel any differently now.

So you are not even 35 but make $400k a year? Good for you girl. I’m 40 and not even at $100K. People like you make me question where I went wrong in life. smh.

[justsomeguy]

Originally Posted by UnfairPark

What? $240K is extremely wealthy? On which planet? May be if no high income taxes, private school/colleges tuitions, property taxes, mortgages, insurance aren’t involved but otherwise it’s a struggle unless you inherited money or have a spouse who earns well but not on your own, it’s a struggle, may be a different struggle from a $24K one but just a different set of problems. It’s not like $240k income starts from year one of the job to last year, there are obviously years of less income, no job, unexpected expenses, illness and retirement etc on that journey.

Your post said $240k/month - that's $2.8M/year! I'm assuming now that you meant $240k a year....

[UnfairPark]

Originally Posted by justsomeguy

Your post said $240k/month - that's $2.8M/year! I'm assuming now that you meant $240k a year....

You are right, $240k a month would be comfortably wealthy.

[RJ312]

Originally Posted by stargirl007

There's so many variables that it's impossible to really say. Professions, how much people want to keep up with the Jones', their age, etc....

I laugh at the guy that says the only people that make $300K+ around here are doctors, lawyer, C-level, people who got inheritance. You would be surprised at the growth of technology oriented businesses here in DFW. I sell enterprise software, whom often sell to those C-level people you would say are "rich" here. I took home almost $400K alone last year, and on an average year, I take home $200K plus but I also sell solutions that transform and provide enough efficiencies to some of the largest companies in the world many times over.

Looking at me on the street, the car I drive, watching me walk into my house, you would never think. I am on the younger side of my 30s and a millionaire technically. I know this is not going to last forever so I basically save every nickel & dime I can, and my top goal is the ability to retire by 55.

I have several colleagues, both in my company and others here in the area that are similar. But of course, I do know people around here that are taking 500-700-1m/year on a good year in SaaS and I think they are rich too.

Bottom line, who really cares what makes someone "rich" here, it really should be about living comfortably within your means, while also saving enough to build your longer-term future. I never felt like this was impossible when I was making $40-50k/year here, and I don't feel any differently now.

You are most likely rich, unless you have a massive spending problem, which it does not sound like since you call yourself a millionaire, which indicates a net worth of $1 million+. You made $400,000 in 2018 and $200,000+ is a typical annual salary. If you are married or living with a boyfriend, that income would factor into household income. A woman earning six figures usually isn't dating some unemployed guy, unless said unemployed guy is a fellow millionaire with a massive trust fund from the parents.

Originally Posted by justsomeguy

Here is how I would stratify. The "middle" bands get a little squirrely because a lot of it really depends on family size and location (e.g. single person household with $70k income in Duncanville vs family of 5 with $70k income in Plano). I would be hesitant to include illiquid retirement funds or home equity in these numbers, or at least, count them at a discount (e.g. 25% of actual value).

Elite Wealth: 9+ figure liquid net worth or income, or high 8 figure
Wealthy: 7+ figure liquid net worth or income
Upper class: ~$500k+ liquid net worth or income
Upper middle class: ~$200k+ liquid net worth or income
Middle class: ~$60k+ liquid net worth or income
Lower middle class: ~$30k + liquid net worth or income
Poor: $16k+ income and very little liquid net worth
Impoverished: under $15k income and no liquid net worth

This is a pretty good classification.

[stanwood]

The real rich aren’t going to take the time to answer this question.

[tcualum]

Originally Posted by justsomeguy

Here is how I would stratify. The "middle" bands get a little squirrely because a lot of it really depends on family size and location (e.g. single person household with $70k income in Duncanville vs family of 5 with $70k income in Plano). I would be hesitant to include illiquid retirement funds or home equity in these numbers, or at least, count them at a discount (e.g. 25% of actual value).

Elite Wealth: 9+ figure liquid net worth or income, or high 8 figure
Wealthy: 7+ figure liquid net worth or income
Upper class: ~$500k+ liquid net worth or income
Upper middle class: ~$200k+ liquid net worth or income
Middle class: ~$60k+ liquid net worth or income
Lower middle class: ~$30k + liquid net worth or income
Poor: $16k+ income and very little liquid net worth
Impoverished: under $15k income and no liquid net worth

Where does the business owner fit in who owns a business worth at least 7-8 figures but plows most of the profits into growing the business and draws a $100k-250k salary? We are business owners and so are lots of our friends. Where would they fit? They're worth a lot on paper but the majority of their net worth right now isn't liquid.

[justsomeguy]

Originally Posted by tcualum

Where does the business owner fit in who owns a business worth at least 7-8 figures but plows most of the profits into growing the business and draws a $100k-250k salary? We are business owners and so are lots of our friends. Where would they fit? They're worth a lot on paper but the majority of their net worth right now isn't liquid.

I would probably treat business equity similar to how I said I would treat retirement accounts or home equity.

If you were, for example, drawing an income of $60,000 but had a $5M valuated business, you are probably still living a middle class lifestyle on $60k a year. You will never realize the actual value of the business in your life unless you sell it or unless the growth of the business starts netting you a higher salary or you start keeping some of the profits instead of reinvesting them.

[pipsters]

Originally Posted by UnfairPark

What? $240K is extremely wealthy? On which planet? May be if no high income taxes, private school/colleges tuitions, property taxes, mortgages, insurance aren’t involved but otherwise it’s a struggle unless you inherited money or have a spouse who earns well but not on your own, it’s a struggle, may be a different struggle from a $24K one but just a different set of problems. It’s not like $240k income starts from year one of the job to last year, there are obviously years of less income, no job, unexpected expenses, illness and retirement etc on that journey.

My household has made $24k and $240k (and above).

I can tell you without a single doubt, we did NOT struggle on $240k. I mean, that's not even close to reality. We are just W2 wage slaves...

At that point it's really a question of how much you save and/or invest a month. I don't remember what we put away back then but it was probably in the $8k-$10k range. Nowadays we are around $18k a month into investments and various savings if I were to average it out on a monthly basis.

If a household is actually struggling to make ends meet in Dallas on $240k a year they have made some decisions way above their pay grade. No, you can't afford that private jet membership lol...

[Treasurevalley92]

Originally Posted by pipsters

My household has made $24k and $240k (and above).

I can tell you without a single doubt, we did NOT struggle on $240k. I mean, that's not even close to reality. We are just W2 wage slaves...

At that point it's really a question of how much you save and/or invest a month. I don't remember what we put away back then but it was probably in the $8k-$10k range. Nowadays we are around $18k a month into investments and various savings if I were to average it out on a monthly basis.

If a household is actually struggling to make ends meet in Dallas on $240k a year they have made some decisions way above their pay grade. No, you can't afford that private jet membership lol...

Yeah, if you make 240K per year and "Struggle" you are making terrible decisions. Hell, even in NYC 240K per year should allow you to live comfortably. Seriously.

If you disagree, you are spending too much, pure and simple.