What is considered a lot of money to have saved up?

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Jesteroftheswamp
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What is considered a lot of money to have saved up?

Post by Jesteroftheswamp » Fri Jan 17, 2020 10:46 pm

This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up

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Re: What is considered a lot of money to have saved up?

Post by Jack FFR1846 » Fri Jan 17, 2020 10:49 pm

100 times your annual total spending would likely be considered a lot of money to have saved up.
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Re: What is considered a lot of money to have saved up?

Post by HawkeyePierce » Fri Jan 17, 2020 10:50 pm

Who cares what anyone else thinks? Whatever consensus might exist (and I don't think it does) has no impact on your financial life.

Pick savings goals relevant to your own life and work towards them. Best of luck.

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firebirdparts
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Re: What is considered a lot of money to have saved up?

Post by firebirdparts » Fri Jan 17, 2020 11:02 pm

If you really saved it up, then I would say anything more than 1 years salary is a lot of saving. Eventually some of us are trying to get to about 20 or 30 years salary.
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Re: What is considered a lot of money to have saved up?

Post by brad.clarkston » Fri Jan 17, 2020 11:45 pm

I live in a low cost area so it depends.

My emergency fund is $10k plus I have most of my FI in mid to short term bank CD's, EE's, T-Bills. The CD's would be very easy to cash out quickly if needed. My wife has another $10k EF account (we separate our finances but have total access to each).

That doesn't include our two checking accounts, the joint account, my HY account or my Fidelity Sweep account that's all in cash which isn't really considered part of the EF but is probably around another $10k.

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Re: What is considered a lot of money to have saved up?

Post by Financologist » Fri Jan 17, 2020 11:48 pm

A lot is more than you need.

Good luck

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Re: What is considered a lot of money to have saved up?

Post by JDDS » Fri Jan 17, 2020 11:59 pm

It's all relative. I think I have a lot saved because this is the most I have ever had saved. I have friends who have saved a lot in their minds but it may be half of what I have saved. Others on this board may be able to say they have 2x-many times what I have, so my savings is not a lot to them.

The most obvious comparisons of the amount saved is to:
- the amount you earn (in a year)
- the amount you spend (in a year)

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Re: What is considered a lot of money to have saved up?

Post by ohai » Sat Jan 18, 2020 1:34 am

Since you asked what is "considered" to be rich, the best answer is what does a survey of people say. Fortunately, there are many such surveys.

For instance, this survey provides the numbers below.
https://www.cnbc.com/2019/07/18/how-muc ... -rich.html
Millennials: It takes $2.2 million to be considered rich
Gen X: It takes $2.6 million to be considered rich
Boomers: It takes $2.6 million to be considered rich

I've seen other surveys by geography, and I think generally they get to $3 million something in expensive places.

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Re: What is considered a lot of money to have saved up?

Post by BusterMcTaco » Sat Jan 18, 2020 1:43 am

The book The Millionaire Next Door defined it, IIRC, your annual income* your age / 10. Or at least that was the pivot between under accumulator and over accumulator of wealth. But that's just one author's opinion and of course one size doesn't fit all.

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Re: What is considered a lot of money to have saved up?

Post by Godot » Sat Jan 18, 2020 2:10 am

ohai wrote:
Sat Jan 18, 2020 1:34 am
Since you asked what is "considered" to be rich, the best answer is what does a survey of people say. Fortunately, there are many such surveys.

For instance, this survey provides the numbers below.
https://www.cnbc.com/2019/07/18/how-muc ... -rich.html
Millennials: It takes $2.2 million to be considered rich
Gen X: It takes $2.6 million to be considered rich
Boomers: It takes $2.6 million to be considered rich

I've seen other surveys by geography, and I think generally they get to $3 million something in expensive places.
OP did not ask what is "considered to be rich." He asked, "What is considered to be a lot of money to have saved up?" A much different question.
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Re: What is considered a lot of money to have saved up?

Post by watchnerd » Sat Jan 18, 2020 2:19 am

ohai wrote:
Sat Jan 18, 2020 1:34 am
Since you asked what is "considered" to be rich, the best answer is what does a survey of people say. Fortunately, there are many such surveys.

For instance, this survey provides the numbers below.
https://www.cnbc.com/2019/07/18/how-muc ... -rich.html
Millennials: It takes $2.2 million to be considered rich
Gen X: It takes $2.6 million to be considered rich
Boomers: It takes $2.6 million to be considered rich

I've seen other surveys by geography, and I think generally they get to $3 million something in expensive places.
Did you see the checking about balance in that article?

That has to be an error, it makes no sense for checking

$250k in checking?
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Re: What is considered a lot of money to have saved up?

Post by Schlabba » Sat Jan 18, 2020 5:08 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
I would say it depends on your age as well. If you are 25 with a 500k net worth you are doing great but if you are 70 with 500k net worth you need to be frugal.

Back when I had nothing I though with a few tens of thousands I would feel that that would be a lot. That number just keep going up the richer I get.
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Re: What is considered a lot of money to have saved up?

Post by MarkBarb » Sat Jan 18, 2020 5:50 am

Someone your age that has saved up twice as much as you has saved a lot of money. Someone your age that has saved half as much as you is being irresponsible.

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Re: What is considered a lot of money to have saved up?

Post by Scooter57 » Sat Jan 18, 2020 9:15 am

Schlabba wrote:
Sat Jan 18, 2020 5:08 am

I would say it depends on your age as well. If you are 25 with a 500k net worth you are doing great but if you are 70 with 500k net worth you need to be frugal.

Back when I had nothing I though with a few tens of thousands I would feel that that would be a lot. That number just keep going up the richer I get.
Your example proves your last statement. The mist optmustic estimate I coulld find, (https://www.synchronybank.com/blog/medi ... gs-by-age/) said the median retirement savings amount of Americans in their 60s is $172,000, which is a third of that $500k. I know very few people in my rural region who have anything close to $500k. Somehow they get by and enjoy their lives.

People who keep raising the bar on how much money they "need" will never be happy, because there will always be some one with more making them feel not-enough.

Part of preparing for retirement should be finding ways to enjoy life that don't require a lot of money. People working full time often substitute stuff they can buy for the time they have to sacrifice. In retirement you have time and freedom. Put yourself in a situation where you can enjoy that time and freedom doing things that don't cost a lot and money will be a lot less important.

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Re: What is considered a lot of money to have saved up?

Post by TheTimeLord » Sat Jan 18, 2020 9:18 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
What's the difference in comfortable, rich and wealthy? Like in driving accidents happen when you are paying attention to what someone else is doing and not what you're doing.
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Re: What is considered a lot of money to have saved up?

Post by KlangFool » Sat Jan 18, 2020 9:24 am

OP,

25 to 50 times your current annual expense.

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snackdog
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Re: What is considered a lot of money to have saved up?

Post by snackdog » Sat Jan 18, 2020 9:33 am

Current salary multiplied by years you have worked is a good rule of thumb after you have been working a few years.

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Re: What is considered a lot of money to have saved up?

Post by Kenkat » Sat Jan 18, 2020 9:46 am

I think a lot is if your boss said to you “jesteroftheswamp, there’s no good way to say this but we’re making some cuts and unfortunately you are one of them”, you would be ok with not needing to replace that income. Sure, it might not be enough to just sit on a beach all day doing nothing, but it would be enough that you’d have many many options. When I got to what I think is this point, it removed a whole bunch of pressure and worry from my life.

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Re: What is considered a lot of money to have saved up?

Post by FI4LIFE » Sat Jan 18, 2020 9:46 am

A hundred if you are homeless. A million if you are middle class. 5 million for upper middle class.

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Re: What is considered a lot of money to have saved up?

Post by meowcat » Sat Jan 18, 2020 9:56 am

If you've never made an annual salary over $50k but you've managed to save $1MM, that's a lot of money.
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Re: What is considered a lot of money to have saved up?

Post by Lee_WSP » Sat Jan 18, 2020 10:44 am

BusterMcTaco wrote:
Sat Jan 18, 2020 1:43 am
The book The Millionaire Next Door defined it, IIRC, your annual income* your age / 10. Or at least that was the pivot between under accumulator and over accumulator of wealth. But that's just one author's opinion and of course one size doesn't fit all.
Is that formula right?

A 30 yr old with 100k would be an accumulator with 300k in wealth?

20 years on that number becomes 500k. That can't be right, considering the book is called the millionaire next door.

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Re: What is considered a lot of money to have saved up?

Post by TheTimeLord » Sat Jan 18, 2020 10:49 am

Lee_WSP wrote:
Sat Jan 18, 2020 10:44 am
BusterMcTaco wrote:
Sat Jan 18, 2020 1:43 am
The book The Millionaire Next Door defined it, IIRC, your annual income* your age / 10. Or at least that was the pivot between under accumulator and over accumulator of wealth. But that's just one author's opinion and of course one size doesn't fit all.
Is that formula right?

A 30 yr old with 100k would be an accumulator with 300k in wealth?

20 years on that number becomes 500k. That can't be right, considering the book is called the millionaire next door.
There is probably an assumption of career advancement and annual raises built in this.
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Re: What is considered a lot of money to have saved up?

Post by dbr » Sat Jan 18, 2020 10:53 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.
I would think that the problem is that there are lots of opinions on this and they come in over a huge range.

When my kids were young having a couple of dimes and a quarter was big. At the same time we knew a guy with $8M and he was worried he didn't have enough. I have a friend who has had lifelong disabilities and another friend who is not very astute with money. For both of them having a few hundred to a few thousand dollars in the bank feels big. Here on the forum you can find people with seven figures in their portfolio who don't think they have saved enough.

What is the purpose of your question? After all if there is one thing where the range is tremendous it is in the wages and wealth of different individuals even in a single economy like the US, let alone around the world.

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Re: What is considered a lot of money to have saved up?

Post by Wanderingwheelz » Sat Jan 18, 2020 10:56 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
The median wealth (net worth) of a 60-64 year old is $225,000. The average wealth is $1.1 million. No matter what age you are that’s the benchmark I’d be shooting for at the typical retirement age- $1.1 million in today’s dollars.

If you’ve got a net worth at least 3x that amount at an age less than 60 then you’ve won. If you’re in a HCOL area you can disregard everything I just wrote.

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Re: What is considered a lot of money to have saved up?

Post by Wanderingwheelz » Sat Jan 18, 2020 10:57 am

firebirdparts wrote:
Fri Jan 17, 2020 11:02 pm
If you really saved it up, then I would say anything more than 1 years salary is a lot of saving. Eventually some of us are trying to get to about 20 or 30 years salary.
I would use expenses, not salary.

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Re: What is considered a lot of money to have saved up?

Post by TheTimeLord » Sat Jan 18, 2020 11:01 am

Wanderingwheelz wrote:
Sat Jan 18, 2020 10:56 am
Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
The median wealth (net worth) of a 60-64 year old is $225,000. The average wealth is $1.1 million. No matter what age you are that’s the benchmark I’d be shooting for at the typical retirement age- $1.1 million in today’s dollars.

If you’ve got a net worth at least 3x that amount at an age less than 60 then you’ve won. If you’re in a HCOL area you can disregard everything I just wrote.
I can see an application of median wealth or reaching some percentile but what would average wealth have to do with anything?
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Re: What is considered a lot of money to have saved up?

Post by Triple digit golfer » Sat Jan 18, 2020 11:08 am

We've hit a point, a month short of my 35th birthday, where I believe if we achieve just a 2.5% real return and never save another dime (or spend any of our portfolio in the next 30 years), we'll be able to retire at 65 on a 4% withdrawal rate. We're invested at 80/20, 3 fund portfolio with 30% of equities in international.

Is that a lot of money at this point? Hard to say. Anything with subjective measures like "a lot" is going to be relative. To me, anything additional we save equates to retiring earlier than 65, excluding things like periods of unemployment or large emergency expenses. But I also know it is very possible, maybe even probably, that I'll be permanently unemployed before I turn 65. So we're keeping our foot firmly on the gas.

To my parents, I assume that what we have is a lot of money. They have less than we do now at age 61 and are retired, but have a corporate pension that covers all of their expenses, and Social Security coming next year when the pension gets cut. My dad said they have enough income to last the rest of their lives, not needing any growth on their own money. To me, they have a lot because they will never need to touch their own investments if they choose not to.

Generally speaking, a lot is maybe twice what I have, at all times. It always works that way. I don't think I'll ever feel rich, but I will be rich if I use what I used to consider rich as my benchmark for "rich."

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Re: What is considered a lot of money to have saved up?

Post by Watty » Sat Jan 18, 2020 11:11 am

I think it was Rockefeller or Vanderbilt that said something like.

"Being well off is being able to live on the interest of your investments. Being wealthy is being able to live on the interest of your interest."

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Re: What is considered a lot of money to have saved up?

Post by chevca » Sat Jan 18, 2020 11:13 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.
Then, you pretty much answered your own question, yes? :happy

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Re: What is considered a lot of money to have saved up?

Post by JoeRetire » Sat Jan 18, 2020 11:16 am

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
What is considered to be a lot of money to have saved up?
A lot is "more than you need".
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Re: What is considered a lot of money to have saved up?

Post by whodidntante » Sat Jan 18, 2020 11:18 am

I guess it depends on what it's for. I think 50 grand is a lot of money, but it's not enough to buy freedom.

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Re: What is considered a lot of money to have saved up?

Post by Grt2bOutdoors » Sat Jan 18, 2020 11:23 am

More than the next guy - but then you’ll never have enough.

When I was 10, if you had $5 I thought you were rich. Today that number has grown to be 5 million. Inflation my boy, inflation!! :greedy

For myself, if you have 3x salary saved at 30 - you’re doing great. But don’t worry if you don’t, anything between 1-3x means you’re on the right track.

Year 50: 4-6x salary, invested properly and you’ll have 10-12x in your 60’s.

While your busy saving, don’t forget to smell those roses and LIVE your life for time waits for no man! Take care of your health so you can spend your money productively. Enjoy it!!
Last edited by Grt2bOutdoors on Sat Jan 18, 2020 11:29 am, edited 1 time in total.
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Re: What is considered a lot of money to have saved up?

Post by Gort » Sat Jan 18, 2020 11:28 am

The amount of money you leave on the table when you finally check out.

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Re: What is considered a lot of money to have saved up?

Post by Grt2bOutdoors » Sat Jan 18, 2020 11:30 am

Gort wrote:
Sat Jan 18, 2020 11:28 am
The amount of money you leave on the table when you finally check out.
Here lies Gort - he died with a lot of money which we will now spend with reckless abandon!! :moneybag
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Re: What is considered a lot of money to have saved up?

Post by Kenkat » Sat Jan 18, 2020 1:21 pm

TheTimeLord wrote:
Sat Jan 18, 2020 11:01 am
Wanderingwheelz wrote:
Sat Jan 18, 2020 10:56 am
Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
The median wealth (net worth) of a 60-64 year old is $225,000. The average wealth is $1.1 million. No matter what age you are that’s the benchmark I’d be shooting for at the typical retirement age- $1.1 million in today’s dollars.

If you’ve got a net worth at least 3x that amount at an age less than 60 then you’ve won. If you’re in a HCOL area you can disregard everything I just wrote.
I can see an application of median wealth or reaching some percentile but what would average wealth have to do with anything?
Average wealth is used to make you feel bad about your own situation :D

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Re: What is considered a lot of money to have saved up?

Post by Dottie57 » Sat Jan 18, 2020 1:40 pm

I have a lot because I think I have a lot. Matter of perception.

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Re: What is considered a lot of money to have saved up?

Post by wrongfunds » Sat Jan 18, 2020 2:17 pm

Triple digit golfer wrote:
Sat Jan 18, 2020 11:08 am
We've hit a point, a month short of my 35th birthday, where I believe if we achieve just a 2.5% real return and never save another dime (or spend any of our portfolio in the next 30 years), we'll be able to retire at 65 on a 4% withdrawal rate.
Can you explain which of the following is true?

- Today my expenses are $40K and today my portfolio is $1M; thus I am all set regardless of what stock market does in next 30 years

Or you are saying that
- Today my expenses are $40K and today my portfolio is $0.476M and with 2.5% real return in to will be $1M in 30 years.

All of the calculations are done in real instead of nominal.

Congratulations either way though!

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Re: What is considered a lot of money to have saved up?

Post by TomatoTomahto » Sat Jan 18, 2020 2:25 pm

If you earn less than us and have saved more than us, you have saved a lot of money. Sounds silly when I say it that way, right?
Okay, I get it; I won't be political or controversial. The Earth is flat.

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Re: What is considered a lot of money to have saved up?

Post by oldzey » Sat Jan 18, 2020 2:40 pm

TheTimeLord wrote:
Sat Jan 18, 2020 10:49 am
Lee_WSP wrote:
Sat Jan 18, 2020 10:44 am
BusterMcTaco wrote:
Sat Jan 18, 2020 1:43 am
The book The Millionaire Next Door defined it, IIRC, your annual income* your age / 10. Or at least that was the pivot between under accumulator and over accumulator of wealth. But that's just one author's opinion and of course one size doesn't fit all.
Is that formula right?

A 30 yr old with 100k would be an accumulator with 300k in wealth?

20 years on that number becomes 500k. That can't be right, considering the book is called the millionaire next door.
There is probably an assumption of career advancement and annual raises built in this.
As BusterMcTaco recalled correctly, my copy (1996) of of Thomas J. Stanley and William D. Danko's book, The Millionaire Next Door, has this information on pages 13 and 14 under the section, "How to Determine If You're Wealthy."

"Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be." Stanley defined someone with this net worth as an average accumulator of wealth (AAW).

Stanley then goes further to define a prodigious accumulator of wealth (PAW) by taking the net worth of an AAW x 2 (or more - the top quartile). He also defined an under accumulator of wealth (UAW) as someone who has one-half net worth (or less - the bottom quartile) of an AAW.
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Re: What is considered a lot of money to have saved up?

Post by Triple digit golfer » Sat Jan 18, 2020 2:55 pm

wrongfunds wrote:
Sat Jan 18, 2020 2:17 pm
Triple digit golfer wrote:
Sat Jan 18, 2020 11:08 am
We've hit a point, a month short of my 35th birthday, where I believe if we achieve just a 2.5% real return and never save another dime (or spend any of our portfolio in the next 30 years), we'll be able to retire at 65 on a 4% withdrawal rate.
Can you explain which of the following is true?

- Today my expenses are $40K and today my portfolio is $1M; thus I am all set regardless of what stock market does in next 30 years

Or you are saying that
- Today my expenses are $40K and today my portfolio is $0.476M and with 2.5% real return in to will be $1M in 30 years.

All of the calculations are done in real instead of nominal.

Congratulations either way though!
The second one. I wish it were the first!

Thank you!

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Re: What is considered a lot of money to have saved up?

Post by Freefun » Sat Jan 18, 2020 3:15 pm

FI4LIFE wrote:
Sat Jan 18, 2020 9:46 am
A hundred if you are homeless. A million if you are middle class. 5 million for upper middle class.
If 5M is still middle class then what would you consider upper class?
Remember when you wanted what you currently have?

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Re: What is considered a lot of money to have saved up?

Post by student » Sat Jan 18, 2020 3:33 pm

Freefun wrote:
Sat Jan 18, 2020 3:15 pm
FI4LIFE wrote:
Sat Jan 18, 2020 9:46 am
A hundred if you are homeless. A million if you are middle class. 5 million for upper middle class.
If 5M is still middle class then what would you consider upper class?
I am interpreting FIELIFE statement differently. I think it meant if one is homeless, then $100 is a lot; if one is middle class, then 1 mil is a lot; if one is upper middle class, then 5 mil is a lot. In other words, upper middle class wants to have 5 mil.

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Re: What is considered a lot of money to have saved up?

Post by JMitchell2020 » Sat Jan 18, 2020 4:02 pm

$4,242,424.24

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Re: What is considered a lot of money to have saved up?

Post by geerhardusvos » Sat Jan 18, 2020 4:17 pm

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
Personally, I think this question is exceedingly a relevant given that everyone has a different age, location they live, standard of living, financial goals, financial risks, life style considerations, etc.

If you have 25X your annual expenses, well then you might just have quite a bit of money and you might just be able to retire
VTSAX and chill

FI4LIFE
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Re: What is considered a lot of money to have saved up?

Post by FI4LIFE » Sat Jan 18, 2020 4:34 pm

Freefun wrote:
Sat Jan 18, 2020 3:15 pm
FI4LIFE wrote:
Sat Jan 18, 2020 9:46 am
A hundred if you are homeless. A million if you are middle class. 5 million for upper middle class.
If 5M is still middle class then what would you consider upper class?
I was referring to income levels. 5 million would be considered a lot of savings for a typical upper middle class couple. So would 1 billion.

wrongfunds
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Re: What is considered a lot of money to have saved up?

Post by wrongfunds » Sat Jan 18, 2020 4:44 pm

No, you are not talking about "income" levels! You are talking about asset levels.

I suppose somebody who makes $5M per year in income probably still consider themselves as "upper middle class" especially when surrounded by other Manhattan Penthouse dwellers.

Unladen_Swallow
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Re: What is considered a lot of money to have saved up?

Post by Unladen_Swallow » Sat Jan 18, 2020 4:47 pm

Jesteroftheswamp wrote:
Fri Jan 17, 2020 10:46 pm
This of course is relative, and I cannot find opinions on this particular question anywhere.

What is considered to be a lot of money to have saved up?

Very curious on a possible consensus in what is relatively considered a lot of money saved up
:D

I laugh because you use the word "consensus" while asking a question that is entirely subjective and open ended. Is this question for a 20yr old or 50yr old? Are you talking of retirement savings or just a point in time? Is this for a middle class person or a multi millionaire. Uh oh. I hope the utterance "middle class" won't self implode this thread.....

A "lot of money" for someone is a number they "think" is a lot of money. Something they are impressed with. For someone with little financial knowledge, they might think a lot of money is $1000 to their name at retirement. For another, a lot might mean no less than $200M. None of this is means anything.
"I think it's much more interesting to live not knowing than to have answers which might be wrong." - Richard Feynman

wrongfunds
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Re: What is considered a lot of money to have saved up?

Post by wrongfunds » Sat Jan 18, 2020 4:52 pm

Watty wrote:
Sat Jan 18, 2020 11:11 am
I think it was Rockefeller or Vanderbilt that said something like.

"Being well off is being able to live on the interest of your investments. Being wealthy is being able to live on the interest of your interest."
Using the accepted research, if you have 625X annual expenses saved up, then you are wealthy. If you have $62.5M in assets and if you can control your expenses to no more than $100K per year, you are now considered wealthy by this definition.

I have a feeling that somebody from BH is going to pipe up and tell us that she does NOT feel wealthy even though she satisfies the above criterion. Mark my words!!

Unladen_Swallow
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Re: What is considered a lot of money to have saved up?

Post by Unladen_Swallow » Sat Jan 18, 2020 4:56 pm

wrongfunds wrote:
Sat Jan 18, 2020 4:52 pm
Watty wrote:
Sat Jan 18, 2020 11:11 am
I think it was Rockefeller or Vanderbilt that said something like.

"Being well off is being able to live on the interest of your investments. Being wealthy is being able to live on the interest of your interest."
Using the accepted research, if you have 625X annual expenses saved up, then you are wealthy. If you have $62.5M in assets and if you can control your expenses to no more than $100K per year, you are now considered wealthy by this definition.

I have a feeling that somebody from BH is going to pipe up and tell us that she does NOT feel wealthy even though she satisfies the above criterion. Mark my words!!
I have $99.0M, but wealth ain't one.

I'm po'.
"I think it's much more interesting to live not knowing than to have answers which might be wrong." - Richard Feynman

FI4LIFE
Posts: 502
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Re: What is considered a lot of money to have saved up?

Post by FI4LIFE » Sat Jan 18, 2020 5:00 pm

wrongfunds wrote:
Sat Jan 18, 2020 4:44 pm
No, you are not talking about "income" levels! You are talking about asset levels.

I suppose somebody who makes $5M per year in income probably still consider themselves as "upper middle class" especially when surrounded by other Manhattan Penthouse dwellers.
Please don't try to tell me what I am talking about. That is my wife's job. I know the difference between asset levels and income levels.

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