[Finance] What is 'rich' in 2023?

[Commander]

With all the economic woe around at the moment, I keep hearing about how the rich are getting richer, and the poor are getting poorer, yet I don't know anybody who is getting richer.

I'm fortunate enough to be in a fairly privileged position, I own a moderately successful company which until recently was doing very well.

If I did what I do now in the 80's / 90's, I'm pretty sure I'd have kids in private school and have a detached 5 bedroom house with a huge garden and a tennis court, yet I still live in modest 3-bed semi with kids in state school and can't really see how that is going to change any time soon. I am definitely getting poorer, not richer.

Who are these people that are getting richer? At what level is 'rich' in 2023?

 

[Goldstone1976]

Isn’t it generally defined as anyone who has a household income of 25% or greater higher than the person answering the question does?

 

[Commander]

Isn’t it generally defined as anyone who has a household income of 25% or greater higher than the person answering the question does?

Ha! Yes probably.

I read an article the other day suggesting you need £204K a year to have 2 kids in private school, couple of nice holidays and nice detached house now. That is insane. The idea of a Consultant Cardiologist, for example, being unable to have kids in private school, seems unbelievable somehow.

 

[Bakero]

Too many factors involved. Household income of 80k would probably give you a very comfortable life in some regions of the UK, less so in London and the South East. 50K where I live is more than enough to live very well.

 

[PeterT]

Ha! Yes probably.

I read an article the other day suggesting you need £204K a year to have 2 kids in private school, couple of nice holidays and nice detached house now. That is insane. The idea of a Consultant Cardiologist, for example, being unable to have kids in private school, seems unbelievable somehow.

Fair enough, but what do you do with the rest, put it in savings I guess as interest rates are climbing?

 

[Herr Tubthumper]

Calling @Steve Foster

 

[BNthree]

The very richest people are getting richer so voted £1m+. It's the 1% who are increasing their wealth though that is more like £100m+ a year income.

 

[beorhthelm]

rich is a state of mind. other people's that is, if they see you have more they think you are rich.

 

[Thunder Bolt]

I think the saying should be the super rich are getting richer, and the poor are getting poorer.

People who can make 7 million in a couple of months, for example.

 

[Coldeanseagull]

It seems the only way to make money, is to have money.
This I've learned since having enough money to live comfortably

 

[Guinness Boy]

Rich is not having to worry about money. The question might be better related not to how much you earn but how much you have saved up. Most people who are monthly salaried, on a weekly wage or earning variably via the gig economy don’t have more than a month’s money in savings at the moment. Many are dipping into savings to pay the mortgage which just shows how dumb putting up interest rates is.

 

[Bozza]

Taking it back a step, don't you have to decide how you measure rich-ness?

You've used income and income alone as a measure, which is fair enough, but I think you probably need to factor in at least one other element - assets and, very probably, debt too.

A lot of those we consider amongst the very richest won't have an income at all, at least not in the way that most of us considers what an income is.

 

[Bakero]

rich is a state of mind. other people's that is, if they see you have more they think you are rich.

That's the thing, isn't it? It's all relative. I live in a poor neighbourhood in a poor city with incredibly high unemployment. Despite earning a modest amount myself, I'm comparatively well-off compared to my neighbours.

 

[Commander]

Taking it back a step, don't you have to decide how you measure rich-ness?

You've used income and income alone as a measure, which is fair enough, but I think you probably need to factor in at least one other element - assets and, very probably, debt too.

A lot of those we consider amongst the very richest won't have an income at all, at least not in the way that most of us considers what an income is.

Yes you do, there are loads of factors at play, but that would be way too long and complicated to put into a NSC poll.

Someone on a £100K salary would definitely have been classed as 'rich' by a large proportion of the population until relatively recently, I think. But I can't see how that is the case now.

 

[Bakero]

According to the ONS, the median household income in the UK is 34,000 yet almost half the voters so far think you need 14 times that to be rich. I'm sure many have had to tighten their belts in recent years but sometimes you have to reflect on how lucky you are.

 

[Nobby Cybergoat]

Inequality is increasing nationally and globally. This will continue to have far ranging repercussions.

Rich is generally a pejorative term and is certainly too subjective to be helpful in conversations about tackling inequality.

 

[CheeseRolls]

It is possible to be rich at any of the earning options outlined. The biggest discrepancies exist in unearned income and the transfer of assets between generations.

For example who is richer here?

1 A 25 year old who owns a substantial property outright and a top end car, does not work and has £49K index linked income from investments
2 A household with exceptional earnings within 1 year of £500K, with no assets?

 

[hart's shirt]

I'm quite rich in spare time at the moment.

 

[beorhthelm]

Taking it back a step, don't you have to decide how you measure rich-ness?

You've used income and income alone as a measure, which is fair enough, but I think you probably need to factor in at least one other element - assets and, very probably, debt too.

A lot of those we consider amongst the very richest won't have an income at all, at least not in the way that most of us considers what an income is.

which kinda stumbles into rich verse wealth, and are they different? i think someone who is wealthy is also rich, but not necessarily the other way round (high income but few assets)

 

[peterward]

With all the economic woe around at the moment, I keep hearing about how the rich are getting richer, and the poor are getting poorer, yet I don't know anybody who is getting richer.

I'm fortunate enough to be in a fairly privileged position, I own a moderately successful company which until recently was doing very well.

If I did what I do now in the 80's / 90's, I'm pretty sure I'd have kids in private school and have a detached 5 bedroom house with a huge garden and a tennis court, yet I still live in modest 3-bed semi with kids in state school and can't really see how that is going to change any time soon. I am definitely getting poorer, not richer.

Who are these people that are getting richer? At what level is 'rich' in 2023?

I'd think a decent definiton is someone who doesnt ever worry about finances, doesnt have to check bank account and can pay for all bills and buy pretty much anything they want (within sensible reason).

If you budget, have little disposable income, live month to month, big debts or have to borrow/save to buy items like mid range cars, I dont think you're rich in the UK.

You maybe more comfortable than many with less, that may mean others are poorer, it doesnt make you rich. Its in that grey zone that a fair few are I'd guess?

Similar to you, my salary isnt bad, but still live in a 3 bed semi, and mine is only salary in family of wife, kid and Ukrainian mother in law.

However someone else may brand you, I'm definitely not rich, I don't think I'm poor either.