[Finance] What is 'rich' in 2023?

[WATFORD zero]

I don't doubt you could spend it. However, if you're spending that kind of money maintaining that lifestyle and don't realise you're wealthy, you're an idiot

What happens is that as their income gradually goes up, they gradually adjust their lifestyle to match it.

I always remember a guy I worked with was stunned when I paid my mortgage off at 40 whilst he still had a six figure mortgage. When he asked how, I pointed out that my kids didn't go to private school, I didn't trade mine and Mrs Wz's cars in every 2 years for a brand new wankpanzer (I know it was 20+ years ago, but wankpanzer equivalent), we didn't spend all our summer holidays in the West Indies, Far east, Middle east in very expensive Luxury hotels and I only spent a third of what he did on our ski holidays each year, even though the stupid f***er could hardly stand, let alone ski.

In his defence, as his salary gradually went up, the schools gradually got more expensive, the cars got flasher and swapped more often, the holidays more luxurious and further afield etc.

But you're right, he was an idiot

And in answer to the OP's question >£4M in assets with no income or >£200K pa income with no assets and the line between those two points.

 

[Bozza]

Isn't the key thing here that a high salary doesn't necessarily equal high wealth?

Having a high salary certainly gives someone a greater chance of enjoying higher wealth, but if you're earning £200k and spending it on stuff that has little-to-no long-term value then they're no wealthier than someone on £20k doing the same.

A lot of people adjust their spending patterns, conciously or otherwise, in line with their income.

 

[Flounce]

What happens is that as their income gradually goes up, they gradually adjust their lifestyle to match it.

I always remember a guy I worked with was stunned when I paid my mortgage off at 40 whilst he still had a six figure mortgage. When he asked how, I pointed out that my kids didn't go to private school, I didn't trade mine and Mrs Wz's cars in every 2 years for a brand new wankpanzer (I know it was 20+ years ago, but wankpanzer equivalent), we didn't spend all our summer holidays in the West Indies, Far east, Middle east in very expensive Luxury hotels and I only spent a third of what he did on our ski holidays each year, even though the stupid f***er could hardly stand, let alone ski.

In his defence, as his salary gradually went up, the schools gradually got more expensive, the cars got flasher and swapped more often, the holidays more luxurious and further afield etc.

But you're right, he was an idiot .

As a rule of thumb I think most people spend to their limit as their income increases and maybe a little more, much like your mate. Hard not to unless you‘re either very mean or just very sensible

This does not apply to people who have billions obviously.

 

[Anger]

Can we focus on what is rich in 2025?

This thread is out of date. We shouldn’t be having a history lesson (at least not since Potter moved on).

 

[WATFORD zero]

Trust me, a lot of them are.................many are destined to be working well into their 60s despite earning so much because of their spending habits (plus the cost of the almost-inevitable divorce).......................that's if the heart attack doesn't get them first, obvs.

I found some of the 'richer than yow'-type stuff really offensive TBH, hated it (and was often disadvantaged because I wouldn't get involved in it).

I had the nickname 'The Olympic Flame' because I never went out.

Simply because I would rather be at home/out with my family than spend nights in clubs/hotels and weekends golfing in Portugal with that bunch of Tossers

 

[WATFORD zero]

As a rule of thumb I think most people spend to their limit as their income increases and maybe a little more, much like your mate. Hard not to unless you‘re either very mean or just very sensible

This does not apply to people who have billions obviously.

I can confirm I'm VERY mean

 

[dazzer6666]

I had the nickname 'The Olympic Flame' because I never went out.

Simply because I would rather be at home/out with my family than spend nights in clubs/hotels and weekends golfing in Portugal with that bunch of Tossers

Oddly, one thing I missed was a 'boys clique' ski trip to Switzerland because I preferred to go to Portugal to play golf with my actual friends (also a bunch of tossers obviously)

My old boss (two houses, two flash cars, second wife - bored at home with a personal trainer while he's in London of course, two young kids at private school etc) is still working 70 hours a week whereas me and several colleagues around his age retired 5 years ago because we chose to live relatively modestly.

 

[Herr Tubthumper]

If you fancy a Louis Vuitton manbag and some Socialist Champagne for a pressie it would be

I think I might struggle with the guts and gizzards food though


Edit - whoops I thought you were quoting @Herr Tubthumper

You need to get your facts right, I don’t own a single Louie Vitton man bag!

 

[Flounce]

You need to get your facts right, I don’t own a single Louie Vitton man bag!

Sorry to hear that, you have gone right down in my estimation

 

[Herr Tubthumper]

As a rule of thumb I think most people spend to their limit as their income increases and maybe a little more, much like your mate. Hard not to unless you‘re either very mean or just very sensible

This does not apply to people who have billions obviously.

If your income increases so you can afford nice things it makes sense. Why wouldn’t you (within reason)?

 

[Change at Barnham]

Rich is having more income than outgoings without needing to work.
i.e. better known as 'retirement', whenever that tipping point can be reached.

Rich is being able to go shopping in a supermarket without having to look at the price of the food you choose to buy.

 

[Mr Phil]

If your income increases so you can afford nice things it makes sense. Why wouldn’t you (within reason)?

So long as you increase your saving at the same proportion

 

[Anger]

You need to get your facts right, I don’t own a single Louie Vitton man bag!

Three is it then?

 

[Milano]

I agree that most people start to spend more as they earn more, it's kinda human nature really, I know I have. It is also completely natural to want to provide the best that you can for your kids.

I'd say of the families I know well it's about 70/30 state to private schools. Mine are state. What others choose is up to them. I admit we considered it for a while, but the sacrifices needed would have meant that as a family we wouldn't 'live', we'd exist.

Something I found crazy was when looking at colleges this winter with my eldest all the private school kids are now looking at the same places. So mine will likely go to BHASVIC from state, and so will my neighbour's but from Hurst. That's nuts IMO. What a waste of ££££s for what? Better cricket nets? Uni's look at A Levels.

I also find that most of the private school that I know it's the grandparents that pay, normally from the ridiculous equity/final salary pensions that a lot of the boomers enjoy.

 

[BLOCK F]

I can confirm I'm VERY mean

Don’t be so hard on yourself. I reckon I’m sensible, but the offspring probably think I’m as tight as a duck’s arse!

 

[WATFORD zero]

My old boss (two houses, two flash cars, second wife - bored at home with a personal trainer while he's in London of course, two young kids at private school etc) is still working 70 hours a week whereas me and several colleagues around his age retired 5 years ago because we chose to live relatively modestly.

Seeing this prompted me to look up the guy I mentioned earlier. Still working as IT Director for a major corporate, whilst I retired 15 years ago this summer.

Bet he has a cracking brand new wankpanzer though, so he's the winner, probably

 

[BLOCK F]

Seeing this prompted me to look up the guy I mentioned earlier. Still working as IT Director for a major corporate, whilst I retired 15 years ago this summer.

Bet he has a cracking brand new wankpanzer though, so he's the winner, probably

I’d rather have the old Jag!

 

[WATFORD zero]

I’d rather have the old Jag!

I'm just looking at the weather forecast and thinking of taking it for a run over the weekend (roof up of course)

Just that I haven't started it up since November, so it could probably do with it

 

[Justice]

Rich is having more income than outgoings without needing to work.
i.e. better known as 'retirement', whenever that tipping point can be reached.

Rich is being able to go shopping in a supermarket without having to look at the price of the food you choose to buy.

My other half works in M&S she tells me the well to do lot spend £500+ on the weekly food shopping. They then pop in during the week for extras.

 

[Weststander]

I agree that most people start to spend more as they earn more, it's kinda human nature really, I know I have. It is also completely natural to want to provide the best that you can for your kids.

I'd say of the families I know well it's about 70/30 state to private schools. Mine are state. What others choose is up to them. I admit we considered it for a while, but the sacrifices needed would have meant that as a family we wouldn't 'live', we'd exist.

Something I found crazy was when looking at colleges this winter with my eldest all the private school kids are now looking at the same places. So mine will likely go to BHASVIC from state, and so will my neighbour's but from Hurst. That's nuts IMO. What a waste of ££££s for what? Better cricket nets? Uni's look at A Levels.

I also find that most of the private school that I know it's the grandparents that pay, normally from the ridiculous equity/final salary pensions that a lot of the boomers enjoy.

That's been a common route for many years, independent school then BHASVIC as the latter has a great 'success rate' too. Saves the family fortunes, the kids still get to Oxbridge or other Russell Group.