What do you have to earn to be rich?

iamtony · 30-12-2019 10:27pm

anewme wrote: »

For me, its having at least 50k there as rainy day back up.

If your boiler goes, if you want to paint the house, if you want to go on a spontaneous holiday, it if a surprise bargain comes up.

that number is my goal before I'm 40(37 now) funny enough and your dead right, that is what stops all the financial stress and worry. The funny thing is a lot of rich people live very basic lifestyles and are happy because they have this financial independence.
At a certain point you just realise looking good for others isn't doing anything positive for you and not having the financial worries most people do is the goal to being rich.

anewme · 30-12-2019 10:28pm

Mad_maxx wrote: »

50k as a rainy day fund would be standard for many people, hardly close to "rich"?

I said "for me".

And if they have 50k thst you don t need sitting there just in case, it's fair to say you are financially very comfortable.

iamtony · 30-12-2019 10:32pm

Mad_maxx wrote: »

50k as a rainy day fund would be standard for many people, hardly close to "rich"?

The figure of people living paycheck to paycheck in the US is something like 92% I'm guessing ireland isn't far off that so when you say many, you dont mean most have 50k in the bank, more like, maybe 100,000 and many of these are older.

saabsaab · 30-12-2019 10:36pm

Rich would mean that you have well in excess of all commitments re family costs etc. and replacement of any modern devices that may break or wear out probably nobody on PAYE. I'd say somewhere in excess of 500k p.a. at least to be rich. It is relative to an extent.

riclad · 30-12-2019 10:38pm

You are rich ,when you can afford to buy a large house, where you want to,
with one or 2 cars. without getting a mortgage.
You can go on holiday, you can afford to buy luxury item,s .
you have savings and a pension plan.
You do not have to pay rent to anyone.

con___manx1 · 30-12-2019 10:43pm

antimatterx wrote: »

One year in as a software engineer, I'm making 32K. I'm in the fortunate position where I can save 75% of my income.

Do u ever have any fun? What are u saving for?

iamtony · 30-12-2019 10:46pm

saabsaab wrote: »

Rich would mean that you have well in excess of all commitments re family costs etc. and replacement of any modern devices that may break or wear out probably nobody on PAYE. I'd say somewhere in excess of 500k p.a. at least to be rich. It is relative to an extent.

That's called **** you money:pac:

iamtony · 30-12-2019 10:51pm

con___manx1 wrote: »

Do u ever have any fun? What are u saving for?

financial security which is actually more fun than getting a new car on pcp funny enough.

arybvtcw0eolkf · 30-12-2019 10:56pm

Guess I'm sorta poor by the OP, but then my mortage is paid off as are my car loan, my bike loan and two college fee's.

I can afford to go for a pint whenever I want, I'm hardly starving and while I still work hard, long hours I enjoy my time off too.

The kids are grown up so I've no package tours with a young family to budget for, but whenever myself and my daughter see cheap flights I can take a city break and not worry about the cost too much.

Does that sound like I'm sorta poor given my wages is far less than €55k per annum OP?

themouthpiece · 30-12-2019 11:12pm

Currently 32 earning 58K a year with a 10% bonus and living at home with the parents. I am not living in Dublin. I am single and have no intention of ever getting a mortgage unless I get married. Definitely not falling into that mortgage trap as a single person. I don't drive a flashy new car. I have a 2010 1.6 TDI and its flying. Hasn't given me one ounce of trouble. Fools and their money are soon parted.

I have 3700 euro going into my bank account every month(Including Bonus). I have more money than I know what to do with. No loans, No bills etc. (Bar paying the elec, phone, oil, 50% of food bill for the parents, 50% property tax, 50% insurance).

I'm lucky at home as my parents have the down stairs and I have the upstairs so separate bathroom, separate living room. I did live with friends for about five years paying 350 a month for a room but we soon went our separate ways, women etc. I'm not going to travel 30 miles away to live with strangers and be away from my home time for the sake of it. What's the point?

I could go anywhere in the world if I wanted to every single month.

I would consider myself rich but as soon as i can retire I will.

Wildly Boaring · 30-12-2019 11:18pm

themouthpiece wrote: »

Currently 32 earning 58K a year with a 10% bonus and living at home with the parents. I am not living in Dublin. I am single and have no intention of ever getting a mortgage unless I get married. Definitely not falling into that mortgage trap as a single person. I don't drive a flashy new car. I have a 2010 1.6 TDI and its flying. Hasn't given me one ounce of trouble. Fools and their money are soon parted.

I have 3700 euro going into my bank account every month(Including Bonus). I have more money than I know what to do with.

I'm lucky at home as my parents have the down stairs and I have the upstairs so separate bathroom, separate living room. I did live with friends for about five years paying 350 a month for a room but we soon went our separate ways, women etc. I'm not going to travel 30 miles away to live with strangers and be away from my home time for the sake of it. What's the point?

I could go anywhere in the world if I wanted to every single month.

I would consider myself rich but as soon as i can retire I will.

Each to their own I suppose

Muller1966 · 30-12-2019 11:19pm

I have turned 50 . Paid my mortgage off a few months ago. Feel a great sense of security after a 30 year slog of repayments . However the stress of having a very large debt for such a long time takes its toll and at the end most people are burned out by long hours , stress etc etc . Hopefully I will enjoy the future years knowing nobody can take my home from me .

iamtony · 30-12-2019 11:20pm

themouthpiece wrote: »

Currently 32 earning 58K a year with a 10% bonus and living at home with the parents. I am not living in Dublin. I am single and have no intention of ever getting a mortgage unless I get married. Definitely not falling into that mortgage trap as a single person. I don't drive a flashy new car. I have a 2010 1.6 TDI and its flying. Hasn't given me one ounce of trouble. Fools and their money are soon parted.

I have 3700 euro going into my bank account every month(Including Bonus). I have more money than I know what to do with. No loans, No bills etc. (Bar paying the elec, phone, oil, 50% of food bill for the parents, 50% property tax, 50% insurance).

I'm lucky at home as my parents have the down stairs and I have the upstairs so separate bathroom, separate living room. I did live with friends for about five years paying 350 a month for a room but we soon went our separate ways, women etc. I'm not going to travel 30 miles away to live with strangers and be away from my home time for the sake of it. What's the point?

I could go anywhere in the world if I wanted to every single month.

I would consider myself rich but as soon as i can retire I will.

nice first post and username:D

BorneTobyWilde · 30-12-2019 11:23pm

You can get 150k per year and still not have a dime .

anewme · 30-12-2019 11:24pm

Muller1966 wrote: »

I have turned 50 . Paid my mortgage off a few months ago. Feel a great sense of security after a 30 year slog of repayments . However the stress of having a very large debt for such a long time takes its toll and at the end most people are burned out by long hours , stress etc etc . Hopefully I will enjoy the future years knowing nobody can take my home from me .

Congrats.

I turned 50 recently as well. While I haven't paid mine off yet because it's a tracker, when I got my statement this year, I realised that my savings now well pass my mortgage, so whatever happens, I'm home and dry. Really such a turning point and relief.

themouthpiece · 30-12-2019 11:25pm

iamtony wrote: »

nice first post and username:D

Thanks, I'm a long time reader. Just reading some threads on living at home at a certain age and had to laugh at the stupidity of some people who are probably just angry at having feck all to spend every month.

BorneTobyWilde · 30-12-2019 11:25pm

Wildly Boaring wrote: »

Each to their own I suppose

They've got it down in all fairness. You see people win 150m on lotto that are broke in two years.
Good to save, good to put money away for a rainy day.

themouthpiece · 30-12-2019 11:29pm

BorneTobyWilde wrote: »

They've got it down in all fairness. You see people win 150m on lotto that are broke in two years.
Good to save, good to put money away for a rainy day.

Thanks, Just to add my parents are far from broke either but that's the arrangement we came up with. I think my Dad wanted me to take some responsibility but is over the moon that i'm still in the house along with my mother.

There's a house in my area for rent for 1100 a month. Not a hope i'm paying that on my own when I have a perfectly good bed in my parents.

iamtony · 30-12-2019 11:33pm

themouthpiece wrote: »

Thanks, Just to add my parents are far from broke either but that's the arrangement we came up with. I think my Dad wanted me to take some responsibility but is over the moon that i'm still in the house along with my mother.

There's a house in my area for rent for 1100 a month. Not a hope i'm paying that on my own when I have a perfectly good bed in my parents.

Your dead right, build your wealth and buy a house cash if you ever need to my friend. A family support network is very important and goes both ways and the whole irish stigma over living with your parents is ridiculous especially since you've got your own floor.

dartboardio · 30-12-2019 11:34pm

themouthpiece wrote: »

Currently 32 earning 58K a year with a 10% bonus and living at home with the parents. I am not living in Dublin. I am single and have no intention of ever getting a mortgage unless I get married. Definitely not falling into that mortgage trap as a single person. I don't drive a flashy new car. I have a 2010 1.6 TDI and its flying. Hasn't given me one ounce of trouble. Fools and their money are soon parted.

I have 3700 euro going into my bank account every month(Including Bonus). I have more money than I know what to do with. No loans, No bills etc. (Bar paying the elec, phone, oil, 50% of food bill for the parents, 50% property tax, 50% insurance).

I'm lucky at home as my parents have the down stairs and I have the upstairs so separate bathroom, separate living room. I did live with friends for about five years paying 350 a month for a room but we soon went our separate ways, women etc. I'm not going to travel 30 miles away to live with strangers and be away from my home time for the sake of it. What's the point?

I could go anywhere in the world if I wanted to every single month.

I would consider myself rich but as soon as i can retire I will.

Youre not on a huge salary, but because you barely have any of the regular outgoings, if I was in your shoes I'd class myself as rich too. Most people earning upwards of 3k per month have huge mortgages /insurance/childcare costs.

I would be happy on that salary if I was in your shoes too, but if I had many outgoings and children it wouldn't stretch very far

For me to ever consider myself rich, it would mean being able to do or go wherever I wanted whenever I wanted, not to a major extent, but being able to go away for the weekend every weekend if I wanted to.. Etc! I don't need to be a millionaire for that!

iamtony · 30-12-2019 11:34pm

BorneTobyWilde wrote: »

They've got it down in all fairness. You see people win 150m on lotto that are broke in two years.
Good to save, good to put money away for a rainy day.

Ah now come on 150 mil people dont go broke, your thinking of normal lotto winners, that's easily spend.

Muller1966 · 30-12-2019 11:42pm

anewme wrote: »

Congrats.

I turned 50 recently as well. While I haven't paid mine off yet because it's a tracker, when I got my statement this year, I realised that my savings now well pass my mortgage, so whatever happens, I'm home and dry. Really such a turning point and relief.

Let me tell you what being rich is ,

1) good health

manageable stress,
C) having your kids off your books and still having a good relationship with them
D) appreciation of what you have above and not trying to keep up a false image that you can’t afford .

Sadly like many other people it takes years to realize what is really important. A good health scare is a good kick up the behind to make you wake up and realize you have one life so go live it . Simple and basic rules that work for me .

iamtony · 30-12-2019 11:46pm

Muller1966 wrote: »

Let me tell you what being rich is ,

1) good health
manageable stress,
C) having your kids off your books and still having a good relationship with them
D) appreciation of what you have above and not trying to keep up a false image that you can’t afford .

Sadly like many other people it takes years to realize what is really important. A good health scare is a good kick up the behind to make you wake up and realize you have one life so go live it . Simple and basic rules that work for me .

1)

C) D) hahaha. Someone's on the sauce:D

Muller1966 · 30-12-2019 11:48pm

Well observed . Haven’t drank in ten years. &#55357;&#56832;

iamtony · 30-12-2019 11:54pm

Muller1966 wrote: »

Well observed . Haven’t drank in ten years. ��

No harm:pac:

Edit: oh sorry drink isn't involved. Would of been funnier if it was ha.

lainey_d_123 · 30-12-2019 11:55pm

nullzero wrote: »

You think 75-90k per annum is an average income?

It most definitely is if it's household income. Two adults each making 40-45K a year most definitely aren't rich, especially if they have kids.

themouthpiece · 31-12-2019 12:03am

Muller1966 wrote: »

I have turned 50 . Paid my mortgage off a few months ago. Feel a great sense of security after a 30 year slog of repayments . However the stress of having a very large debt for such a long time takes its toll and at the end most people are burned out by long hours , stress etc etc . Hopefully I will enjoy the future years knowing nobody can take my home from me .

And this is what I hate about this country. You a hard working man all your life, paying off your 30 year mortgage and Sally at 21 down the road pops out a kid and has a house for life.

There is something seriously seriously wrong with this country. It rewards the people who don't work.

People getting a social house are better off than a couple earning 90K a year between them.

iamtony · 31-12-2019 12:08am

lainey_d_123 wrote: »

It most definitely is if it's household income. Two adults each making 40-45K a year most definitely aren't rich, especially if they have kids.

No maybe not but thats because of their life style choices to live in a "nice" area and drive a "nice" car. That's enough money to make any family well off if they dont fold under the societal pressures of keeping up with the Jones.

Seriously break it down. Mortgage 1200-1500 a month vs salary 7000 a month anything extra is just showing off. The normal way is to buy a starter home, maybe it of the city of in an area not classified as "posh"
.
Food about 600 a month if kids involved.

Utilities 150 a month again with kids.

Car 500 a month.

So that's the necessities and leaves €4250 a month. Actually I never accounted for tax so maybe take 1000 a month off that so round it off to 3k excess a month. That's a well off family unless the parents are morons.

themouthpiece · 31-12-2019 12:15am

Unless your getting a Ferrari, Lamborghini or Porsche (only expensive cars i can think of at the top of my head), I don't see why anyone would spend more than 7K on a car.

Its utterly pointless.

Stheno · 31-12-2019 12:20am

iamtony wrote: »

No maybe not but thats because of their life style choices to live in a "nice" area and drive a "nice" car. That's enough money to make any family well off if they dont fold under the societal pressures of keeping up with the Jones.

Seriously break it down. Mortgage 1200-1500 a month vs salary 7000 a month anything extra is just showing off. The normal way is to buy a starter home, maybe it of the city of in an area not classified as "posh"
.
Food about 600 a month if kids involved.

Utilities 150 a month again with kids.

Car 500 a month.

So that's the necessities and leaves €4250 a month. Actually I never accounted for tax so maybe take 1000 a month off that so round it off to 3k excess a month. That's a well off family unless the parents are morons.

Two adults on 45k each would pay more than 1k in tax?

griffin100 · 31-12-2019 12:21am

iamtony wrote: »

No maybe not but thats because of their life style choices to live in a "nice" area and drive a "nice" car. That's enough money to make any family well off if they dont fold under the societal pressures of keeping up with the Jones.

Seriously break it down. Mortgage 1200-1500 a month vs salary 7000 a month anything extra is just showing off. The normal way is to buy a starter home, maybe it of the city of in an area not classified as "posh"
.
Food about 600 a month if kids involved.

Utilities 150 a month again with kids.

Car 500 a month.

So that's the necessities and leaves €4250 a month. Actually I never accounted for tax so maybe take 1000 a month off that so round it off to 3k excess a month. That's a well off family unless the parents are morons.

Do you actually think that you only pay €1,000 tax a month on €7,000 of earnings? Do you have a job?

lainey_d_123 · 31-12-2019 12:22am

themouthpiece wrote: »

And this is what I hate about this country. You a hard working man, paying off your 30 year mortgage and Sally at 21 down the road pops out a kid and has a house for life.

There is something seriously seriously wrong with this country.

I semi agree with this. I've slogged my absolute guts out for years and years, working through illness and other serious problems, underemployed and living in poverty, sharing flats with people I hated and only now in my mid thirties am I anywhere near getting on my feet. It's galling to see girls I went to school with who have literally never worked a day in their lives in 3-bed houses with gardens and plenty of money to spend in the pub, all because they popped out kids, when I'm still flat sharing and hoping to buy sometime in the next 5-7 years if I save every penny I have and get a few promotions. It feels so desperately unfair.

But then you have to think, life isn't fair. I already have it far easier than most in the world being born in Ireland and not Syria or somewhere, I got a good education for free, I have opportunities. And ultimately I believe I'm better off than the people with their social housing and child benefit, because I have lots of opportunities and they don't. If I want to feck off to work in Dubai or London or New York, I can. They're stuck where they are, chained to the welfare state, at the mercy of future policy changes or cuts (look at how the UK is now).

Ultimately, would you want to live like that? I don't think I would.

Stheno · 31-12-2019 12:22am

Stheno wrote: »

Two adults on 45k each would pay more than 1k in tax?

Checked on 45k its approx 900 each a month on tax

iamtony · 31-12-2019 12:22am

themouthpiece wrote: »

Unless your getting a Ferrari, Lamborghini or Porsche (only expensive cars i can think of at the top of my head), I don't see why anyone would spend more than 7K on a car.

Its utterly pointless.

Cause they are jealous of their neighbours new car in a lot of cases. We have a new SUV in the garden and I can feel the neighbours jealousy when i drive past in them in it some will probably go into debt shortly to keep up appearances but they dont realise we pay for things with cash. I did have one neighbour say to me paying for it now will be something, I cant remember but he tried to justify it to himself that we got it on pcp or something. Sad really.

iamtony · 31-12-2019 12:23am

griffin100 wrote: »

Do you actually think that you only pay €1,000 tax a month on €7,000 of earnings? Do you have a job?

I'm a taxi driver so dont pay much tax:pac:

Stheno · 31-12-2019 12:24am

iamtony wrote: »

I'm a taxi driver so dont pay much tax:pac:

Which is why cash should be outlawed for taxi fares

iamtony · 31-12-2019 12:24am

Stheno wrote: »

Checked on 45k its approx 900 each a month on tax

So maybe 1500 a month when combined and family tax credits applied. Not far off. Still a lot of cash left.

iamtony · 31-12-2019 12:25am

Stheno wrote: »

Which is why cash should be outlawed for taxi fares

Dont be jealous now. It's not even the cash thing it's being self employed and being able to write off 40% of the value of the car each year and fuel etc.

Stheno · 31-12-2019 12:27am

iamtony wrote: »

So maybe 1500 a month when combined and family tax credits applied. Not far off. Still a lot of cash left.

Nope closer to 1800 and more if civil servants.

And your figures for utilities are way off. 150 a month is my gas and electricity add internet,bins, TV and its twice that

themouthpiece · 31-12-2019 12:28am

iamtony wrote: »

Cause they are jealous of their neighbours new car in a lot of cases. We have a new SUV in the garden and I can feel the neighbours jealousy when i drive past in them in it some will probably go into debt shortly to keep up appearances but they dont realise we pay for things with cash. I did have one neighbour say to me paying for it now will be something, I cant remember but he tried to justify it to himself that we got it on pcp or something. Sad really.

No problem when people can genuinely pay for them and its not crippling them whatsoever, but some families are living pay check to pay check with two new cars and might get out once a month for a meal and a few drinks. Basically their life is work, home. Rinse and repeat.

Reminds me of Mrs Bucket.

lainey_d_123 · 31-12-2019 12:28am

iamtony wrote: »

No maybe not but thats because of their life style choices to live in a "nice" area and drive a "nice" car. That's enough money to make any family well off if they dont fold under the societal pressures of keeping up with the Jones.

Seriously break it down. Mortgage 1200-1500 a month vs salary 7000 a month anything extra is just showing off. The normal way is to buy a starter home, maybe it of the city of in an area not classified as "posh"
.
Food about 600 a month if kids involved.

Utilities 150 a month again with kids.

Car 500 a month.

So that's the necessities and leaves €4250 a month. Actually I never accounted for tax so maybe take 1000 a month off that so round it off to 3k excess a month. That's a well off family unless the parents are morons.

You are living in Fantasyland.

Very unlikely they'd have such a high salary and such a low mortgage. Most high earners also live in expensive, high cost of living areas...unsurprisingly. 1200 to 1500 a month gets you a modest 1 or 2-bedroom apartment in Dublin, certainly not a family home.

Utilities 150 a month for a family with kids? You have to be kidding me. I pay nearly 2/3 of that for my share of all the household bills, in a household of 2 adults in a small flat.

You think a family with a household income of 7K is paying 1K in tax?

Have you ever actually had a job or lived as an adult on your own? A family earning 90K with 2 kids and a mortgage would be just getting by in many areas (esp Dublin)...if you think this means living in a fancy area and driving a fancy car, you're very wrong.

iamtony · 31-12-2019 12:30am

Stheno wrote: »

Nope closer to 1800 and more if civil servants.

And your figures for utilities are way off. 150 a month is my gas and electricity add internet,bins, TV and its twice that

you would want to upgrade your home with solar or something. Anyway still a lot of spare cash in my opinion.

Why dont you give a full breakdown of a couple on 90k a year and show me how they are cash poor if they have one car and a house worth 300k.

themouthpiece · 31-12-2019 12:33am

A married couple earning 45K each will take home 5700 euro a month.

Stheno · 31-12-2019 12:33am

iamtony wrote: »

you would want to upgrade your home with solar or something. Anyway still a lot of spare cash in my opinion.

Why dont you give a full breakdown of a couple on 90k a year and show me how they are cash poor if they have one car and a house worth 300k.

I couldn't give you that breakdown as I don't know such a couple.

On the Bill's that's what I pay for all utilities for the four bed house I rent

My partner and I have one car

iamtony · 31-12-2019 12:34am

lainey_d_123 wrote: »

You are living in Fantasyland.

Very unlikely they'd have such a high salary and such a low mortgage. Most high earners also live in expensive, high cost of living areas...unsurprisingly. 1200 to 1500 a month gets you a modest 1 or 2-bedroom apartment in Dublin, certainly not a family home.

Utilities 150 a month for a family with kids? You have to be kidding me. I pay nearly 2/3 of that for my share of all the household bills, in a household of 2 adults in a small flat.

You think a family with a household income of 7K is paying 1K in tax?

Have you ever actually had a job or lived as an adult on your own? A family earning 90K with 2 kids and a mortgage would be just getting by in many areas (esp Dublin)...if you think this means living in a fancy area and driving a fancy car, you're very wrong.

I've 2 kids, a paid for house that I knock out in 10 years worth about 350k, 2 newish cars, pay all the utilities, pay 115 month for sky, have a teenager and a wife who spend a half hour each in the shower each day and my household income is probably about 80 this year with me full time and the missus working part time.

And you pointed out the problem yourself, most high earners live in expensive places and have big cars aswell.

iamtony · 31-12-2019 12:35am

themouthpiece wrote: »

A married couple earning 45K each will take home 5700 euro a month.

With kids?

Stheno · 31-12-2019 12:36am

iamtony wrote: »

I've 2 kids, a paid for house that I knock out in 10 years worth about 350k, 2 newish cars, pay all the utilities, pay 115 month for sky, have a teenager and a wife who spend a half hour each in the shower each day and my household income is probably about 80 this year with me full time and the missus working part time.

And you pointed out the problem yourself, most high earners live in expensive places and have big cars aswell.

So what do you class as utilities? Gas and electric?

themouthpiece · 31-12-2019 12:36am

If you are outside of Dublin and take home 5700 a month you are well off.

Lets say a semi d is 200k and you pay the min deposit of 20K and want a 10 year mortgage of 1749 a month that still leaves you with 4,000 euro a month.

A modest car of 280 a month each leaves you with 3440.

Bills and food at 800 a month leaves 2600 a month.

themouthpiece · 31-12-2019 12:37am

iamtony wrote: »

With kids?

Sorry not sure about the kids part, i excluded that. Lets just say a couple starting out.

iamtony · 31-12-2019 12:39am

Stheno wrote: »

So what do you class as utilities? Gas and electric?

Yes pretty much. Anything else like sky, Netflix, internet etc are luxurious. I pay internet but I often wonder why because the phone internet is what is used the most and tethering to the TV is easy and fast enough to run Netflix etc.

What do you have to earn to be rich?

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