Does earning $180,000 make you rich? Let's not pretend about who's rich and who's poor

Discussion in 'Property Market Economics' started by wombat777, 30th Mar, 2017.

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What level is your income and are you rich or poor?

  1. Yes, my income is greater than $180k gross and I think I am rich

    12 vote(s)
    8.8%

  2. Yes, my income is greater than $180k gross and I think I am poor

    15 vote(s)
    10.9%

  3. No, my income is less than $180k gross and I think I am rich

    15 vote(s)
    10.9%

  4. No, my income is less than $180k gross and I think I am poor

    22 vote(s)
    16.1%

  5. Yes, my income is greater than $180k and feel I am neither rich nor poor, but comfortable

    29 vote(s)
    21.2%

  6. No, my income is less than $180k and feel I am neither rich nor poor, but comfortable

    44 vote(s)
    32.1%
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  1. wombat777

    wombat777 Well-Known Member

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    wombat777, 30th Mar, 2017
    #1
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  2. EN710

    EN710 Well-Known Member

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    I earn less than that and think I'm neither poor or rich.... but I'll round it down to I think I'm poor ;)
     
    EN710, 30th Mar, 2017
    #2
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  3. Propertunity

    Propertunity Well-Known Member

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    It's not how much you earn but how much you keep.
     
    Propertunity, 30th Mar, 2017
    #3
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    I don't really think earnings from a wage are any indication either way.

    Earnings from investments or a business might. In the event you become unable to work, how much of that would you still be earning?
     
    D.T., 30th Mar, 2017
    #4
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  5. Perthguy

    Perthguy Well-Known Member

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    Perthguy, 30th Mar, 2017
    #5
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  6. Indifference

    Indifference Well-Known Member

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    What a disastrous discussion in the article..... continually flipping from gross - net - gross..... & consistently comparing them against each other. OMG....

    180k for tax purposes is gross so in reality, is only ~122k..... big difference! So when comparing to "disposable income" stats, its all very skewed.

    Perhaps the question should be "Does earning 180k net make you rich?"

    Additionally, the family income split can make a considerable difference to disposable income.... especially if only one income earner & you breach 180k....

    I didn't answer the poll as I can't relate to the binary options of just rich or poor for a given income level.
     
    Indifference, 30th Mar, 2017
    #6
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  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    $180k is just above the average income for a couple (I think the average is about $80k working full time). You could argue that $180k household income is a little above average, but wouldn't make you 'rich'.

    It does give you potential however. It's what you do with the money you earn that makes you rich. There's people who have well below average incomes but have built huge portfolios and are quite wealthy by any measure. I've seen people make $500k per annum and whilst they might live in a nice house, they've got no other assets of significance (the BMW isn't an appreciating asset).
     
    Peter_Tersteeg, 30th Mar, 2017
    #7
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  8. Phase2

    Phase2 Well-Known Member

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    We all generally compare ourselves to those around us.. so it stands to reason that most on $180k+ wouldn't necessarily see themselves as being rich, if for example their social network was all earning $300k+. If they lived in an area where everyone else was earning $60k/year, then they might see themselves as being rich.
     
    Phase2, 30th Mar, 2017
    #8
  9. Phase2

    Phase2 Well-Known Member

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    Agree, this reduced the article to virtual drivel. Then again, "The Guardian" has successfully lowered the bar year on year.
     
    Phase2, 30th Mar, 2017
    #9
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  10. larrylarry

    larrylarry Well-Known Member

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    I'm poor. said it.
     
    larrylarry, 30th Mar, 2017
    #10
  11. Cimbom

    Cimbom Well-Known Member

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    The average (median, not mean) household income in Australia is about 80k
     
    Cimbom, 30th Mar, 2017
    #11
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  12. Wukong

    Wukong Well-Known Member

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    Always find it hard to believe it's that low. There are a lot of good jobs out there.
     
    Wukong, 30th Mar, 2017
    #12
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  13. Perthguy

    Perthguy Well-Known Member

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    Perhaps the question should be "Does earning 180k net make you rich?"

    Wouldn't that depend on what you do with the money. Once person could live frugally on $30k per year and invest the rest, retiring after 10 years on a decent income. Another could live lavishly buying wine, eating out every night, gambling at the casino, renting a million dollar house and investing nothing. At the end of 10 years, who is richer?
     
    Perthguy, 30th Mar, 2017
    #13
  14. Ross Forrester

    Ross Forrester Well-Known Member

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    If your passive investment income exceeds 180k you are rich.
     
    Ross Forrester, 30th Mar, 2017
    #14
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  15. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Ask all the miners making $150k+ in the boom how rich they are now without a job
     
    Joshwaaaa, 30th Mar, 2017
    #15
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  16. Indifference

    Indifference Well-Known Member

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    Yes however the premise of the article is about tax levy imposed above 180k, over and above the tax threshold jump.

    For those not aware, currently the effective tax rate is 49% above 180k ( 45% + 2% Medicare + 2% budget levy) without accounting for the Medicare Levy Surcharge..... the 2% budget levy is due to expire end of current FY.

    180k single income family of 5 versus a single person is not quite the same... unless you're the ATO...
     
    Indifference, 30th Mar, 2017
    #16
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  17. Cimbom

    Cimbom Well-Known Member

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    And there are lots of low paying ones too
     
    Cimbom, 30th Mar, 2017
    #17
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  18. Phase2

    Phase2 Well-Known Member

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    For me, being rich is really determined by not needing to use your time to earn an income that covers all of your living expenses for the area you choose to live (otherwise: needs, not wants).

    Therefore, I am not rich, not even close.
     
    Phase2, 30th Mar, 2017
    #18
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  19. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Not at the point where I would feel comfortable only ever travelling business/first class.
    When I can without even caring about the economical feasibility, I'll feel rich.
     
    Ace in the Hole, 30th Mar, 2017
    #19
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  20. chylld

    chylld Well-Known Member

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    Poll needs options for "I think I am rich/poor based on reasons totally unrelated to my gross income."

    Asset balance, cashflow, safety buffer, passive income, control over debt (and only having good debt) etc etc are all much more important than one simple gross income figure.

    Voted anyway :)
     
    chylld, 30th Mar, 2017
    #20
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