Today, fiance and I discovered there is an entire "OBAMA" TV channel high in the cable digits. That's right, an entire channel that plays Obama infomercials all day. This is Texas; I can't even imagine aggressive ads in battleground states.We tuned in to see. Sure enough, Obama infomercials. The footage/sound bites/zippy statements I've seen in other media, and I'm no newshound. (I think I could have made about half his Democratic convention montage with the hour we half-watched.)
The number he kept repeating was $250,000. People like you and me who make less that $250,000. You know, normal people.
We have finally gotten close to $250 this year; next year we will hopefully be above it. But I don't feel "rich." I don't feel like I have all the money in the world. We can afford to eat out, I guess, but we can't afford a house.
I spent over 200K on my education. Fiance took huge risks and huge business loans. He started a new, clever business. We weren't magically given $250K income; we worked our butts off and spent a lot of money we didn't have yet.
It feels very strange to out-earn your social class, to no longer belong to it, and to be an evil rich person. If I'm rich now, I just wish I didn't feel so poor all the time.
14 comments:
I'm not sure you're taking Obama's message correctly. He isn't calling anyone making over $250k rich; he's acknowledging that someone has to pickup the price tag for the government's spending and you can't get water out of a turnip. There are plenty of people out here making $25k a year or less and can barely afford to eat everyday and eating out isn't an option. I tend to agree with you as far as taxation goes; why should I pay more taxes just because I earn more money? Just the way it is I guess. Lastly, you speak often about being working class, but it doesn't seem like you realize that most people can't afford to drop $20k on a fancy wedding or drive 2 expensive vehicles. I'm not knocking your choices; to each his own. However, I think you really need to uplift your consciousness regarding people making <$35k/year.
If you can't afford to buy a home with a $250,000 income, then there is something wrong with the way you are spending your money.
Thanks Barb! We just got to $250 after fiance built his own business this year. Good to know school, business, paying cash for our wedding, and paying down our debt were "wrong."
But you overlook the fact that the money you've spending on luxury vehicles could have been spent on or saved for the downpayment on a home.
Sorry, but for a household of two people with an income of $250,000, you fall into the top 1% of households in this country. No one is going to get out their violin and feel sorry for you.
When the rich pay less taxes percentage wise than the poor, something is wrong. Just look at Buffet who followed all tax laws and only had to pay 17% in taxes. Meanwhile his secretary is paying 30%? How is this fair?
There is a marginal value to income and the lower income brackets definitely feel it much more than the middle class and above.
So, if you do not feel wealthy, reevaluate your decisions and look at opportunities that were afforded to you that not everyone has available. You will see that you are much wealthier than MOST people.
I'm no Warren Buffet. Sadly, I don't have any capital gains. We just have terrifying payroll taxes, and even more terrifying small business taxes plus payroll taxes plus local and state sales taxes.
We are one of the most heavily taxed possibilities (no capital gains, with small business, no kids/house).
Has your fiance looked into a different business structures (perhaps a C or subchapter S corporation?) that would allow him to reduce his tax burden? It could get complicated, and I don't have enough details about his business to make definite suggestion, but I figured I'd throw it out there.
That's what being middle class is all about unfortunately. We are taxed to death and although have good finances on paper, it often doesn't feel like that in reality. There are many people worse off though who have no option to improve their lives through the opportunities you have created for yourselves. You should be proud of everything you have accomplished.
Dog, here's the deal. You just got into the upper echelons of earning power. BUT imagine how you'll feel in 10 years? Or even 5 years from now?
Also realize that $250k is A LOT more than most people make in 2 years! I know we are well off, my DH and I and I cannot imagine what it's like to raise a family on $48k/year, the median salary.
So yes people will find it hard to play the violin for you.
Hey. I don't think you were expecting to have people yell at you about your income. I think the point you were trying to make is that people who make a lot don't necessarily feel 'rich' when there are richer people out there who make a lot more.
But the thing is, do you know when you will feel rich? Because otherwise, it will always about beating the AGI number you reported the year before. When does it end? Will $500K be enough and make you feel rich?
I know I don't feel nervous anymore about being poor now that I make double what I made in 2002. But doubling my income in 5 years took a lot of hard work, and I have earned it. But I certainly don't feel 'rich'. I feel 'richer' and deservedly so. I worked to attain what I have by improving my skills and I am less nervous because I don't live paycheck-to-paycheck anymore and that is a very satisfying feeling.
Don't let the naysayers bring you down, but know what you are doing by making >$250k as a couple. If you are happy, then that's ok. If you're not happy, then ask yourself why.
Good luck! (And only taking up knitting to relax. That's what it's for.)
Maybe people/commenters are just jealous because you can make that kind of cash. Just a thought.
Then again, maybe I am just being more sympathetic because I know I can make that kind of cash if I worked full-time the entire year...
C'est la vie. We play with the hand we are dealt.
As for living below my means, I do that really well, but it's only because I didn't have as many debts and obligations as you do/did and $250k may not go a long way after seeing how much you have to spend in getting a business to take off.
You are lucky to be in a state without income tax. Property tax to fund the Houston schools will blow your mind if you buy a house.
I don't think you are either. But I do agree with Barb - albiet in a nicer way.
Just compared to me you make 6x what I do in a year. I live in the DC/Metro area which is a pretty expensive area of the country and I am raising a child.
I'm not trying to put you down but just trying to put things in perspective a little.
And though I don't feel rich either, I'm sure to those making minimum wage or even double minimum wage would love to be in my shoes.
I think really looking at where your money is going and what you are spending it on will show you how much extra you have. Especially if you look at cheaper alternatives for spending your funds.
dude i live in NYC the most expensive damn city in the country and i make about 60k. I don't feel rich either but it sure does feel better than 2 yrs ago b4 i got my masters n was earn 33k.
Sometimes, it seems like you want a pity party....and to the commenter that said we were all jealous.
I am not. Just getting a little tired of the whining and "woe is me" for someone that earns more than the average FAMILY and has no kids and no mortgage!
the reason you say you can't "Afford" a house is because you want a 750k house. YOU ARE IN TEXAS. housing is cheap (relative to most of the east coast) 300-400k should be enough house for you now in you MID TWENTIES WITH NO KIDS.
you are not paris hilton
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