When do people start to feel well off financially?

And as I'm typing this after reading the thread again, I'm realizing I may have to get a master's or some kind of trade education to get to retirement and provide a comfortable life for my family. Mortgage outbound calling (income verification of borrowers) is a dead-end job and I'm not smart enough to pass the SAFE Act test (I've always been a horrible test-taker and only got a 1060 on the GRE--I had to take it to get into seminary school, which I dropped out of because it was a personal hell, but that's another story).

8am

jecht wrote:

I live in Ohio on 38k, which sucks, but I am still paying myself first (about $600 a month into investments/retirement) and having a little left over. I just have to stay healthy and avoid getting sick, injured or having a catastrophe happen. Even on $2400 or so a month after taxes, it's tight--I only have $200 a month in emergency funds (the rest go to rent, food, gas, etc.). Even though I WFH my Camry sucks fuel relative to my Corolla and I should have probably kept it.

If you can survive on 35k cheaply (no drinking, vacation or too much fun stuff), you can live like a king on 55k to 60k in Ohio.

I've seen you post a few times now about your situation. You don't need any continuing education or training, you need to start applying to good jobs indiscriminately and seeing what sticks. Learn about the companies you're applying to and their industry. Scour through their job requisitions and start familiarizing yourself with the vernacular and expectations for that position. I work for a company that has a plant in Ohio and there's plenty of work in, say, supply chain/manufacturing support/industrial engineering that you could apply for a eventually land a job making in the $50k-$60k range.

I'd say around $4.5 million in net worth to feel "well off". Gives you a $1.5 mil house which is enough budget to get something acceptable basically anywhere (whether your personal preference is an apartment in Manhattan or a mansion in Idaho) and then $3 mil invested to generate about $100k a year in income, so that you can live a comfortable middle-class lifestyle without having to work.

If you have a job which is meaningful to you outside of just a paycheck- like being a doctor or working on something to save the world from climate crisis or something that gives you high-status if you care about that, then you can probably feel "well off" doing that job regardless of net worth as long as your household income is over $200k. If your job is just a paycheck, then maybe a household income around 300-600 to feel well off.

While that sounds reasonable enough, where you live would make a tremendous difference. The number you quoted could be as much as 30% less if the person lived in the more affordable parts of the country and had no plans of relocating.

Also, age would invariably play a role in that the numbers you quote look to be about the apex of the household's net worth, and someone decades earlier might feel comfortable just knowing they were on-route to achieving those targets.

For me it was when I started giving people who i like free money or items. That's part of my personality too, I enjoy seeing happiness in others who deserve it.

Mounty Pylon wrote:

Dick D00b3y wrote:

Its not a number.

Wrong.

It’s not a number of dollars, but it is a number: age.

The reason comes from changing you perception with age as well as gaining more certainty about your financial future as you near retirement and your future becomes less dependent on your current earnings.

The number is probably between 50 and 60. Otherwise it’s never.

I agree with this take. As I close in on 50 in a few months, I have started to come to the realization that the years of delayed gratification after growing up very poor are starting to finally pay off. I'll be in a position to pay off my mortgage in a few months, I have funded my retirement accounts adequately to provide for a reasonable degree of security even if I had to stop saving now, I can take nicer and longer family vacations, I will be in a position to buy a vacation/retirement house in a couple of years, I know how I plan to pay for my kids' college, etc.

As little as a few years ago, because of the emphasis that I put on paying down my debts (mortgage, primarily) and fully funding my retirement accounts, I was cash poor and almost felt like I was living pay check to pay check despite a comfortable income. But your prime earnings years tend to be your 50s, and if you were otherwise prudent with your money before then, you also tend to have reduced a lot of other expenses at the same age (like having a paid off home, paid off cars, no student loans, etc.), so now every extra dollar becomes disposable income and has an amplified effect when it comes to feeling secure.

So, much like we do when training for a track season or a marathon, just keep focused on the run or workout in front of you, and do all the things you need to do today, and tomorrow will take care of itself (whether tomorrow is race day or the day when you reach financial security).

F*ck off

My 2 cents - spend less than you make and you can always feel well off/secure. The next goal is to make as much as you can doing what you enjoy.

at what point wrote:

I live in Indiana and recently started making > 100k/year with my latest pay raise. I certainly feel like I can do pretty much whatever I want, but I definitely don't feel "well off". I also don't have kids.

What are the "big bucks"? North of 200k? Obviously this is all way different than someone living in NYC or whatever.

Hi, Flagpole!

My wife and I make a little more than that combined. We live in another low cost state. We spend less than we take home, even after investments. I don't feel well off, but we are definitely comfortable. I think the secret is to not keep trading everything in for the newer model every year or two. This goes for cars, houses, cell phones, and anything else the media tries to sell you.

I dunno, apparently the goal posts keep shifting on me

at various points of my life it was like:

a) could afford to get a car

a1) could afford to insure/gas said car

b) have a job [really should come before a) ]

c) have some sort of a value as an employee in the job market, that appears tangible [starts to show up in compensation]

d) some sort of NW target points [100k, 500k, 1m, 2m, etc]

so my answer is all of these seemed to move the needle in 'start to feel well off'

lately it's about some marker beyond financial independence, I guess some sort of health/well being metric. I guess that's a sign that money isn't everything if you're financially independent. The most valuable things have nothing to do with $

But certainly being broke/having problems establishing financial independence is a huge detriment to happiness

at what point wrote:

I feel on track to retire and such. I think I can maintain my current lifestyle until I die no problem (barring serious illness or whatever). But I live a pretty basic life. Used toyota, mostly eat at home, nice but not great vacations, relatively cheap housing.

I'm talking more about like "I'm gunna spend some money and not give a crap" type of money.

I have a lot of money, and I still "give a crap" about frivolous spending. Those two things are independent.

Your parents thought you were worth it. Pay it forward, the rewards are endless.

jecht wrote:

I live in Ohio on 38k, which sucks, but I am still paying myself first (about $600 a month into investments/retirement) and having a little left over. I just have to stay healthy and avoid getting sick, injured or having a catastrophe happen. Even on $2400 or so a month after taxes, it's tight--I only have $200 a month in emergency funds (the rest go to rent, food, gas, etc.). Even though I WFH my Camry sucks fuel relative to my Corolla and I should have probably kept it.

If you can survive on 35k cheaply (no drinking, vacation or too much fun stuff), you can live like a king on 55k to 60k in Ohio.

Wow, about to retire at a young 55 in Ohio and have 1.3 mil with stock savings and a lump sum buyout combined...and I get nervous sometimes.

at what point wrote:

I live in Indiana and recently started making > 100k/year with my latest pay raise. I certainly feel like I can do pretty much whatever I want, but I definitely don't feel "well off". I also don't have kids.

What are the "big bucks"? North of 200k? Obviously this is all way different than someone living in NYC or whatever.

It really depends on where you live, and what is your lifestyle that you want to have.

I know people who have net worth >$5M, with incomes >$250k, they go to vacation anywhere in the world, go to the best restaurants ... who are always complaining about money.

Others who live on 45k, and are happy af and wouldn't change a thing in their life.

________

But generally speaking, for most people, if income easily cover all the expenses, based on their lifestyle they had on a long term basis, they ususally feel comfortable.

For me, it was when my unassuming father in-law informed my wife and I that his net worth is over $20 million.

30k a month

I make $80k in Ohio and save around $3k/month. I don't see how you could not feel well off making over $100k in Indiana unless you're ridiculous with money. If you define having status symbols as well off then you'll never feel that way because you'll always want the next best thing.