Would that income be enough for you?

I know someone who makes that, and still thinks she is poor (or middle-class) 

It is upper middle class. 

Sounds out of touch with reality. What line of work is she in? 

After taxes its not that much. certainly not rich. 

I think that the more you make, the more you spend. Not neccessarily on junk, but you can afford a nicer house, car, vacations, so even tho you make more money, it doesn't go further than when you made less. 

Income is only half the equation. The other half is spending. Federal income tax will take $60k of that $240k/year, and FICA will take another $8k or so. That takes you down to $170k take-home pay. That leaves $15k of spending per month, or about $500/day.

Lease a new Luxury SUV every year ($600+mo, maybe?), buy a $1M house ($2500/mo taxes), eat out 3x/day ($150?), drink a few Starbucks fancypants drinks each day ($20), wear designer clothes purchased at full retail (the sky's the limit), go on expensive vacations to Europe/Asia/Caribbean, weekly (or more often) trips to the salon/spa, hire a nanny, housekeeper, and lawn service, put in a pool (maintenance!), get the biggest cable package you can find plus all the cable boxes and DVRs and TVs...I'm sure we can easily come up with $500/day of spending.

Not that it would necessarily make you any happier, but it's easy to find ways to spend the money. 

Income is only half the equation. The other half is spending. Federal income tax will take $60k of that $240k/year, and FICA will take another $8k or so. That takes you down to $170k take-home pay. That leaves $15k of spending per month, or about $500/day

Very true. Add to it that many deductions go away at upper income levels. 

I hear some people make that amount daily with their super secret stock trading algorithm... 

Lease a new Luxury SUV every year ($600+mo, maybe?), buy a $1M house ($2500/mo taxes), eat out 3x/day ($150?), drink a few Starbucks fancypants drinks each day ($20), wear designer clothes purchased at full retail (the sky's the limit), go on expensive vacations to Europe/Asia/Caribbean, weekly (or more often) trips to the salon/spa, hire a nanny, housekeeper, and lawn service, put in a pool (maintenance!), get the biggest cable package you can find plus all the cable boxes and DVRs and TVs...I'm sure we can easily come up with $500/day of spending.

In my way of thinking thats a dumb way to manage money.

1. Live well below your income
2. Cash is King
3. Invest in a balanced portfolio, mutual funds, real estate, offshore investments, etc. 

Normal or Nuts?


Seriously NUTS!

Only a NUTS person would think she was poor at $20k a month. I bet she somehow thinks she "deserves" the luxury life items and is living beyond her WAY MORE THAN POOR means.

Look around - there are plenty of poor people living off the taxes coming from people making $20k a month.

A reasonably intelligent and rational person would not consider themselves poor if they were earning $20k a month.



. 

I made an average of $2k/day last year. It's really not that much money 

I bet the actual poor would disagree with your stupid comment.

$20K a month is a LONG WAY from POOR.

Unless you are NUTS! 

Nobody said it wasn't a long way from poor.

It's middle class, which has a huge disparity from poor, and wealthy class. 

After taxes its not that much. certainly not rich.

Upper middle class? Try top 5% in the US. Top 1% in the world. 

Anything below top 1% is considered middle class.

Think of it in logarithmic terms.

Let it sink in for a second that someone making just $35k/year makes more than 60% of Americans. 

someone making just $35k/year makes more than 60% of Americans

That includes most of the Americans on Social Security... 

Lets be clear about this. SS was never intended to be a retirement program. 

Lets be clear abut this. SS was never intended to be a retirement program.


Absolutely true. Retirement is a do it yourself program. 

Retirement is a do it yourself program.

Absolutely ... and the sooner you realize it and start saving for retirement, the better off you will be. 

I made an average of $2k/day last year. It's really not that much money

I think we have a habitual liar on the board 

I think this OP made up the story... 

I think this OP made up the story...

you are probably right. 

I think this OP made up the story...

I think so, also. 

$20K a month!!! Are you kidding me! I can't even imagine making that much money. But I just teach children how to read and write...so why would I? lol 

The person I was talking about is my dentist friend. She think she's only made it if she's a millionaire. 

20k is not that much seriously taxes eat up a lot when you reach that 200k income Bracket

The more you make the more they steal! 

The person I was talking about is my dentist friend. She think she's only made it if she's a millionaire.

Accrued wealth and income are not the same animal.

With that income over a few years, if you're not a millionaire, there's something seriously wrong with you. 

20k is not that much seriously taxes eat up a lot when you reach that 200k income Bracket

The more you make the more they steal!

That's a fact. 

But I just teach children how to read and write...so why would I? lol

But you knew that you weren't going to make much money when you went into teaching, right? 

But you knew that you weren't going to make much money when you went into teaching, right??

Absolutely. But, as a young adult choosing that major, I don't think I really had any idea of what people made. I had always heard that teachers don't make much money, but that wasn't what was important to me. I wanted to be an educator...simple as that.

It still isn't what is important to me, but as I got older and started a family and then started hearing what some people make....then looking at what educators make....it is simply unbelievable.

I am very thankful that since I have been teaching (almost 20 years) my salary has almost doubled. That's a great thing. But I guess also sad. Even doubling my salary....we are NOWHERE close to 20k a month.

I will end with this...I am not complaining. I love my job...I love my schedule...and we live a nice life. But DANG....I could sure have fun with 20k a month. My classroom would be AWESOME!!!!

And for those that love the phrase, "But you get summers off!". You are so right and that is one thing that makes this job so wonderful. I get to be a stay at home mom for 2.5 months. But even if we worked year round....teacher salaries would still be nowhere near 20k a month.

Thanks for the question. Most people just like to jump to the "summers off" slam.

Enjoy this beautiful weekend. 

I wanted to be an educator...simple as that.

Well done. 

But, as a young adult choosing that major, I don't think I really had any idea of what people made.

Interesting point. It seems like a matter of perspective at that age. It sounds like you have no idea what "much money" meant. Me either. 

Interesting point. It seems like a matter of perspective at that age. It sounds like you have no idea what "much money" meant. Me either.?

I had no clue!!! Right or wrong, that is the truth. But I don't think it would have changed my choice. Hard to say now, but I'd like to think I would have taken the same route. I have been blessed to teach some pretty amazing kids. 

I came from nothing, spent the majority of every waking moment working, learning, researching, and eventually made a name for myself in a highly skilled industry.

All that I've discovered at the end of it all, is that the money didn't make me happy :) I've changed my outlook a bit after that experience, and slowed down.

"More money, more problems" as they say.

I could only imagine the personal satisfaction from teaching children. 

Fuzz - I can relate, I now say that I was very lucky to have been raised literally dirt poor. But I do say that now with the luxury of being comfortable. I do believe the stress of poverty took it toll on my father, and was partially responsible for him dying young.

What I have come to believe in my old age is it is a large measure being greatful for what you have, keeping it in perspective with others, and keeping control of your wants.

When we first came into some significant money, we went a touch crazy. Thankfully it did not take us all that long to realize that all the stuff did not matter all that much.

We splurge on the things that give us real pleasure, but in the main they are little things. Better quality food, quality sheets, etc, less but better clothes.

Early on we learned to understand what we wanted for us, and what we wanted to impress others. 

Im still poor 

I could only imagine the personal satisfaction from teaching children.

I believe that a similar feeling can be acquired when you become of service to others. It is a fleeting thing; it must be constantly renewed. 

I could only imagine the personal satisfaction from teaching children.


That part is rewarding. Dealing with the parents and the administrators is a deal breaker. Just look at the turnover at Riverwood. 

$20K a month!!! Are you kidding me! I can't even imagine making that much money. But I just teach children how to read and write...so why would I? lol



Dentists make that much because it's very difficult work. Can you imagine extracting people's teeth on a daily basis, especially the ones in the back of the mouth, and trying to not damage their nerve endings? Also, sedation has the potential of killing someone if not administered properly (dosage/weight ratio), not to mention people don't mention what their complete medical history is, not to mention working with KIDS.

I'd say dentists earn every cent of that $20K/month income. 

With that income over a few years, if you're not a millionaire, there's something seriously wrong with you.


If you put aside $100K per year, it would take you 10 years to be a millionaire. Not just "a few years"