Join our investing community

(Rant) What the heck does "wealthy" really mean.

Discussion in 'Off Topic' started by SubUmbra19, 19th Jul, 2019.

  1. SubUmbra19

    SubUmbra19 New Member

    Joined:
    9th May, 2019
    Posts:
    2
    Location:
    Sydney
    (Rant begins). It really grinds my gears that people on salaries of around $180,000 are called "wealthy" in media articles. That's not wealthy. In Sydney, that's just about managing. The words "wealthy" and "rich" are bandied about by politicians and media but never defined. There's far more to "wealth" than just income. Someone on a gross salary of $180,000 isn't "wealthy" if they're paying off a mortgage of $800,000. What about household income, what about other assets, and debts? Are they at the beginning of their career, or are they about to retire? Politics of envy of those on lower salaries means anyone earning more than themselves, is called rich, with the implication of envy and resentment.

    Also grinds my gears that gross salary figures are always used, everywhere. Virtually no-one earning $180,000 will manage to bring home $180,000. After tax and medicare it's $122,000, which doesn't sound so much as $180,000. Aggressive tax planning like setting up trusts etc isn't worthwhile until salaries hit the $400,000 plus level.

    Today I learned that the ATO categorise ‘Wealthy Individuals’ as those who control a net wealth of $5M or more. That means excluding the family home.

    So no, people earning salaries of one or two hundred thousand are not "wealthy", certainly not just by looking at their gross salary.

    (Rant ends)
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    1,217
    Location:
    QLD
    welcome to InvestChat ,

    the government has a tax-addiction ( but do their best to minimize paying it while in the government system ) so 'wealthy' is just a useful excuse to gouge more from some legally

    to me 'wealthy ' means probably never being forced to work again to support my lifestyle ,( in my life-time )

    now i am comfortable living a relatively frugal style what is 'wealthy for me might be abject poverty for say James Packer ( but i am happy with what i have , although a big market downtuen in the stock market or property market might cause a frown or two .)

    BTW Bill Shorten when deputy Prime Minister complained he couldn't live on $300,000 a year

    so what the government calls 'wealthy' is poverty for an ex-deputy PM ( and he would have been eligible for extra benefits )


     
  3. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    309
    Location:
    hodor
    Depends how you define wealth, income or assets or other. The media is obviously about creating outrage and gross income fits this purpose.

    However.
    If someone is earning that much they are in the top 10% of workers (household might be top 20%).

    So the vast majority have to make do with much less, to complain about your situation if you are in the top quintile is pretty self absorbed IMO.

    Debt/mortgage etc are lifestyle choices you make. Maybe people complaining on those sorts of income should take a good hard look at themselves.
     
    RS Gumby and twisted strategies like this.
  4. RS Gumby

    RS Gumby Well-Known Member

    Joined:
    24th Jan, 2018
    Posts:
    57
    Location:
    Australia
    At the moment I earn 75k a year, my highest paying job. I'm very happy and consider myself wealthy. I go without a lot but was brought up poor and I mean really poor. It's all relative. I know people on a lot more than me and they're always striving for more - that's fine I don't have a problem with that but what irks me is when they start whingeing they don't have enough. Just be comfortable in your own skin.
     
    Terryw and twisted strategies like this.
  5. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    943
    Location:
    Sydney
    I think being wealthy is having enough to do what you want when you want.
     
    twisted strategies and RS Gumby like this.