<p>My folks have a net worth a little under $2 million. They aren’t rich. My dad has dementia and they can end up spending all that money over the rest of their lives. </p>
<p>However, Most people don’t have their net worth either.</p>
<p>Funny. Though I’d like that house on the top of Tiburon and would feel that I’m rich with that net worth, I guess it depends. If he has a bunch of debt, expensive items, medical expenses, some ex wives to pay for, and still feels like he needs to work to pay the bills, that could make a difference. Perhaps he has a sneaking feeling that he could lose it all and still can’t do what he’d really like. But I’ll bet he doesn’t consider himself poor.</p>
<p>I always consider that money doesn’t make you happy, but not having enough can make you very unhappy. Though I think if I had your friends house, I’d be happy.</p>
<p>Earning more than one spends can make people feel comfortable and even rich, if that is where their head is at. Spending time and resources on others who have less can cultivate an attitude of gratitude. </p>
<p>Spending more than one earns is a good way to feel poor. Comparing yourself with others who have more and always wanting more is how to cultivate envy and the constant feeling of not having enough. </p>
<p>Net worth is one yardstick that has its uses and abuses as well. Last night, I sat beside someone who moaned how he has loans of $5m. I acknowledged that but pointed out he had assets over 10m, and that his income exceeded the monthly payments, which he conceded. I didn’t buy into his “poor me” positioning. </p>
<p>Things that were luxuries (or did not exist) when I was growing up are now middle class “necessities.” Two cars, private education, vacation , music lessons, sports camps, smart phones, internet, laptops, etc. My family was comfortably middle class growing up, but my mom still made many of my clothes and I wore hand-me-downs. None of the kids got cars until we got jobs and bought them ourselves. Vacations were trips to Grandma’s or camping. Lifestyle expectations have really changed. My H came from an even lower-income background. We worked very hard to raise our children to understand necessities v. luxuries. And to appreciate how much they had in comparison to others. </p>
<p>Yeah…I am talking net worth… After deducting any debt. </p>
<p>It is mental. He is just going to be poor. He does feel worried that he can lose what he has. By worrying about losing what he has, he has kind of already lost what he has.</p>
<p>He doesn’t feel comfortable unless there are problems. Sometimes, he has to make problems when there are none. It is a very nice house.</p>
<p>Reminds me of when our kids came home from preschool observing and semi-whining about how they haven’t had a ski vacation like their peers. They still haven’t had a family one with us 20+ years later, tho both had opportunities to ski in college. </p>
<p>When D’s preschool class was allowed to tour an airplane and sit in first class, they all buckled their seat belts and seriously wanted to know where they were flying. They were surprised and disappointed to be herded out for cookies, juice and back to preschool. </p>
<p>Yes, for many, expectations have risen tho incomes haven’t, making increasing #s of folks feeling “poor.”</p>
<p>This morning’s paper had a story of another house fire that burned two houses–one with less than 700 square feet that had 3 families living in it with 15 people and the next equally modest home that housed 2 families (10 people). These 25 people now only have the clothing they were wearing. I believe all were uninsured renters and unlikely to find a landlord willing to allow such high density that they can afford. </p>
<p>Multi family living is sadly very common in our community as the lesser of unpleasant options. </p>
<p>Some people have to make problems where there are none, and that will never change. We are all a little bit crazy in some way.</p>
<p>Paying last mortgage and tuition payments helped us feel a lot more comfortable. Also having H feel he could retire after working hard for 45 years was a great feeling. I’d say we are comfortable and more comfortable without the two massive monthly bills any more!</p>
<p>I think perhaps it’s not politically correct to be or consider oneself “rich”'as opposed to comfortable. I have a loved one who whines about her poverty but is a county club member, takes many fancy vacations all over the world, doesn’t hold a full time job, and lives in a $2+M 4000 square foot home in a gated community. She doesn’t fit my view of poverty, even tho she and her H have not saved much for retirement. </p>
<p>The 25 people who lost everything to the fire are those I consider poor and have no idea what they will wnd up doing. </p>
<p>I’m surprised that it was legal to have that many people in such a small place. It probably wasn’t. Hopefully the owners of the house that the fire started in has some sort of coverage that pays out to others who have been affected by their fire, but that’s unlikely. They’d probably have to sue for damages. I don’t know how people who aren’t pretty well off live in Hawaii (maybe by living 25 to a house), most people would have to live elsewhere. It’s just too expensive there, but I guess you pay for perfection.</p>
<p>My cousin who completed only 6th grade believes that the more we spend the more money we make and if we don’t spend we will be poor. I think there is some truth in it.</p>
<p>Lots of folks who live in HI have retail and food service jobs that pay poorly, so many live together and hope not to be caught. Of course the zoning codes would not allow 15 people to live in less than 700 square feet. Most insurers a would only protect handlers did liability they incur. </p>
<p>I occassionally wonder how people with low paying jobs live in expensive areas. 15 people living in 700 sq ft is a little beyond my imagination.</p>
<p>Not handlers, owners or landlords. Tenants need renters insurance or equivalent to recover folr these types of losses. </p>
<p>Here’s the article, for anyone interested. It’s an upper middle class neighborhood, where homes generally sell for $750k and up. </p>
<p><a href=“Hawaii Photo Galleries and Videos | Honolulu Star-Advertiser”>Hawaii Photo Galleries and Videos | Honolulu Star-Advertiser;
<p>Paying your monthly smartphone data plan bill will make anyone feel not rich…</p>
<p>This article is about a year old, but I found it interesting. Based on his tables, the average net worth of the “above average” couple in their 50’s is about $3 million. Rather than use data for the entire population for his calculations he assumes a certain education level and other factors that probably apply to the CC crowd. If his averages are correct, it’s easy to understand why many people feel below average relative to their peers.</p>
<p><a href=“The Average Net Worth For The Above Average Married Couple”>http://www.financialsamurai.com/the-average-net-worth-for-the-above-average-married-couple/</a></p>
<p>Momsquad, I find you link interesting. </p>
<p><a href=“You are being redirected...”>You are being redirected...;
<p>My wife is above average and I am now a bum. Please don’t tell her. :)</p>
<p>^ How many people could have a good career-track job at the age of 22? How many people could work in their career for 43 years</p>
<p>Also, it assumes that not only they start working right after college (i.e., at 22 yo.), but also they do not have any student loans to pay back.</p>
<p>Funny chart. Assuming his 23 year old couple will have 25K saved, and over 300K by the time they’re 30. Hilarious! I guess he’s assuming this couple will never have kids, lose a job, both be in a high paying career field, and both save a lot of money. I think I’d call them a rare couple, indeed.</p>
<p>Those 2 links make me feel I am a ■■■■■■■■.</p>