I often hear people describing someone as making 'good money.' What exactly is 'good money'?

Question

I guess ultimately this will evolve into a question about adequate income levels. Certainly a person in Boston or San Francisco needs much more income to sustain a certain standard of living than one in Boise or Charlestown. So, the question is how much money *(annual net income) would you feel is adequate in 2006 for a family of four??

Answer 1

It is somewhat subjective. It depends on the person's point of view. If someone grew up during the Depression, I would think their idea of "good money" would be drastically different than a person who grew up during a different time period. Also, your idea of adequate and my idea of adequate could be two very different things. I guess I think good money is when you are making more than everyone around you like someone said AND you have money to spend after expenses. That person would not be buying and creating more debt, but would be able to satisfy the basic needs of the family and satisfy many of the wants without straining your wallet.

Answer 2

Well, it really depends on your style of living. I would say a good idea would be to live below your means, so you don't end up in a financial crisis.

To be a family of four, making mortgage payments on a $300,000 house with 20% down, you would need about $70-$100,000 per year income.

Basically, unless one of the adults is making some serious bread, both adults will have to be working to afford this kind of lifestyle (ie: lower(?)/middle-class)

Obviously having kids is a big expense, but sense I don't have any, I would hope that the joy of having a kid would be worth the extra expenses.

Some people believe that "good money" means that you will have some money left over after the bills are paid to take a vacation every year or buy some nice car.

Others believe that "good money" means that they are not in debt and they are able to sustain a modest way of life with food and a modest home.

'Good money' can be made, and people can still be in debt. I made what many would consider 'good money' at one time, and it ended up that the only reason I didn't have any money left over because I was paying too much for rent to have extra cash. It all depends on your priorities, I guess.

Maybe people like to be eating ramen for dinner in a 5-bedroom 3-bath 2100 sq ft home in Malibu. People are crazy.

Answer 3

good money is living the style you like and still having some left over.
Good money is different to everyone. I am happy driving a used car and I can do most things I want to do. My sister wants new cars and newer clothes and she could only live maybe 6 months on what I make a year.
It is all the way you live your life.
My others sisters kids do not have any xbox, nintendo or such and the TV is in the front room and not in every bed room. They say they have a good life (they travel 3 times a year) but most their friends would say their family does not make good money.

Answer 4

Well, you sort of answered your own question by saying it depends on the metro area in which one lives. A home in Phoenix will cost more than in Mentor, Ohio; a home in Atlanta will cost less than a home in Los Angeles (average; speaking to a family of 4). Therefore, your standard of living is dictated by not only the money you make, but by how much it costs to live where you live. Where I live, there is a very good cost of living. For 250,000, you can buy a very nice home that would be comfortable for a family of 4. You would need to make around 70k at least to afford this home, but possibly a little more because of higher energy costs. That eats up a lot of peoples' salaries - the gas, the energy and food costs.

Answer 5

I agree that where you live determines how much income you need I feel that the term "good money" refers to an amount of income that a person makes in order to let them live the type of life they desire examples- have the kind of car and house that they want and still have money left over to pay bills and have some fun

Answer 6

It depends on several factors: lifestyle, area, expenses, cost of living for that area. For some an annual net income of $54,000 a year is adequate yet for others even an income of $108,000 is not enough. "Adequate" of course is a relative term. For my family, with family expenses (including a kid in college) "adequate" would be $100K.

Answer 7

I think "good money" is making enough to take care of yourself and your family. When you make "good money" you are able to take care of basic needs, but also afford yourself some luxuries also. I wouldn't know what this is like, since I barely live over the poverty level, making about 14,000 a year for three people is NOT good money. Making good money in my state, for a family of four, is considered to be in the $50,000+ a year!!! Wow, I don't know what I'd do with that much money............

Answer 8

this answer can only be answered by knowing all the facts I am in Australia and our wage system over here is diffrent to the States, we have award wages over here for most positions but if you are a highly trained in your area of expertise you can normally negotiate your package that you work for. So depending on what are you are in what standards you set for yourself, where you work weather you are a one or two income family depends on how much you earn, is depending on how much you find is a good income for you and your family.

I look at it htis way, Your bills are paid, you have a roof over you head, food in your mouth, and clothes on your back you are earning enough to get by, if you have all the above with savings you are doing well if you have all of the above with savings and investments you are doing very well.
If you have the above with property as well as investments you are in the millionaires league, moeny dosn't make you happy it what you are comfortable in living with and without, and family that makes it a good place to be.

Answer 9

Median income or higher for the area. For example, my family's current income, 40k/yr-ish, is above the median income of El Paso, TX of 30k/yr for a family of four. However, in San Antonio, the median income is 52k/yr. So if we lived in El Paso we'd be making good money. Right now, we're just barely scraping above the poverty income level to qualify for HUD, CHIP, Medicaid, & Food Stamps.

Answer 10

We live in CT and we are a family of four and we are just under six figures with one of us working. We have a five-fig mortgage on a 100+ yr old house with 7 acres. We are able to save money for the kids' education and our retirements. We have life insurance, car insurance on 2 regular older cars and two older fixed-up sports cars and two half-week driving vacations per year. We donate to our church and one other charity. I consider this "good money". Does this help?