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

Well one of them has definitely lived a rich life.

 

Might not be too healthy to enjoy the rest of it though

 

Lots of cheap cars for sale in WA i've noticed, definitely some opportunities there.

 

Its all been said before, but its relative. In 13/14 I was supporting 3 students, an unemployed son & his partner, a mate going through a horrid divorce and a wife. I am earning same money now, but with wife working and mate & kids gone the money goes much further.

Currently in North Vietnam and comparing to local villiagers Centrelink recipients are wealthy...oh hang on...someone already said you're wealthy if you don't have to work to sustain your income

 

Correct. Makes transport trucking a couple at a time to QLD a worthwhile expense.

 

How about one individual earning $180k, stay at home mother and 2 young children

Different to both parents working earning $90k each, 2 young children

Throw in investments (+/-) on each scenario and then there's always tax

 

@Redwing - massive difference between 2 $90k salaries (paying about $44k tax between the two plus childcare benefits ie $136k nett) & one $180k income with $54k or $126k and no benefits as spouse is not working.

 

I think being rich is about having optionality. So it'll come down to how much assets you have for most people.

Eg someone with two $1.5m houses (60% LVR) but minimal income (say $40k from a job), is potentially richer than someone with $100k savings and earning $180k pre-tax from a job.

Even then it's hard to compare the two, but I think the first person has more options in life. This may change if your income is not from a job, but say from a family trust.

 

$2m of property does make someone rich either.

Many self funded retirees and pensioners live in million dollar properties and earn little. You cant eat the bricks and sandstone.

 

Massive difference!

 

I'd say comfortable... and provides options to not be weighed down by a J.O.B.

 

As mentioned, it's all relative. However, in the context of a typical Australian household I would say earning $180k gross is comfortable cash flow wise. Depending on how you manage the rest of your affairs is another story.

 

I find it staggering that a couple each pulling $90k ($180k total) can still recieve some kind of welfare?

Dear Australia... You have it wrong!

Blacky

 

Usually cheaper and in terrible condition. They don't need a roadworthy when purchasing so examples with suspension issues, worn out tires, illegally modified etc are sold easily. Been testing a few lately whilst in Perth and the costs of repairs on some of the cars are more than buying a cleaner example from east cost.

 

I assume you meant "does not"

To that I'd say you can reverse mortgage it to live off equity.

Get real. The idea that you can have a net worth of $2m and not be considered rich or wealthy is ridiculous. Old people do it deliberately - take their super as a lump sum, upgrade and buy as much house as possible and cry "poor woe is me I have no income, gimme the pension". Then when they die they pass on millions to their children.

There's an entire subset of the financial planning industry devoted to assisting old people do this.

Of course they are wealthy, you should call them out as such rather than enabling this mentality that the entire country is made up of "battlers".

 

Why not ? A lady earning $90k goes on mat leave for 6 months and loses half her pay. She should be getting something from the gov. There are no other benefits she/couple can get anyway.

I reckon if the gov develops some smarts, instead of income testing dole, they should tax test it. You get certain payments only if you have paid x amount of tax (salaried/business) in the last three years.

 

Why?
Welfare is a safety net. Not a lifestyle choice.

 

Are you in touch with reality ?
Paid parental leave is not a safety net. Btw, all of welfare is not a safety net. Other than medicare and some senior care, I can almost challenge you to show me which welfare qualifies as safety net. This is your choice of words. I find your blanket statement about couples earning 180k not to receive any kind of benefit, unreasonable, at the very least.

 

I agree entirely that this is what welfare "should be".....

Unfortunately our sense of entitlement runs deeper than the Grand Canyon in this country and rewards those who procreate or are indolent. This topic will surely strike a very raw nerve with many... on both sides of the fence.

 

Thank you for supporting me in demonstraiting the entire issue with Australia's welfare system.
I think we are on the same page here.

Welfare, is indeed, designed to be a safety net. However, Australia has lost touch with it, and it has become a right - for every Australian - to recieve a govy hand out... cos you know.... we deserve it right!
I pay tax, I should get it back so I can fund my choices. The govy doesnt do anything for me...

Explain to me why on earth, should a couple who earn $180k deserve any kind of welfare?

From the dictionary - welfare - receiving financial aid from the government or from a private organization because of hardship and need.

Am I in touch with reality? I thought I was, but maybe I dont really want to be.

Blacky