What income level do you think makes someone “poor” or “rich”?

Question

It seems that everyone likes to call themselves “middle-class,” but distinctions have to be made somewhere.

I’m asking strictly about income, not subjective things like family life, friends, spirit etc...

I’m not sure what other people think, but I’d say that the poverty line is set considerably below what someone who is “poor” would earn.

Answer 1

Yes the poverty line is set so low that if you were at it you would be dead. I think that the people who are poor make about 25000 a year. It depends where you live. IN NYC that income is useless. You could be poor at 40K and in LA 30K is poor. But in Tenesee it might be OK. The national Poverty line is ridiculous. The California minimum wage is 7.50 per hour yet the national minimum wage is 5.25 per hour. No one will work for that. Not even illegals. Because it is so low I can't see why you would waste 8 hours of your day for 40 dollars. Not when you have to give 20% to the government and 10% to ssi.
Even if you got to keep it all there are better things to do that will make more money.
As far as rich I hear rich people say they don't have any money. They are about cash flow. So they could make maybe a million a year but it is in their coorporations and they take a small allowance from that. That is to protect them from taxes. So they run short of pocket change.
To be rich in this country an income of 500,000 a year is rich enough. Anyone making 100K is in good shape.

Answer 2

This is, in a reality level, subjective, but if you look for "poor", just check the state income set for applying for social help even when you are working. This is an indicator of poverty.
Now, for rich.... that's a very subjective definition. A family of 3 on San Francisco can not afford a house even when they make 90,000 a year, but in Nevada that's a lot of money. One million am year of income makes the line for rich, but the lower rich line ... id o not know.

Answer 3

Personally I'd set the bar like this:

If you make enough to afford a house that's twice the nationwide "median priced" home, pay all of your regular bills, and still have more than 40% of your income available as "disposable" income, then you're above-middle-class. Most middle-class families in the US live paycheck to paycheck, with little left over to save or spend as they wish.
Now sure, part of that depends on the person -- you can make a lot of money and live paycheck-to-paycheck if you're a poor budgeter, spend lots of money on things you don't need, run up your credit cards, etc. So my example assumes you're not just being stupid with your income. :)

Answer 4

I think that if you can buy anything you really want without having to look at the price tag you are really rich.

You are really poor if you can't even buy the necessities of life and if each purchase makes you wonder what you can do without to afford this.

One other test for rich that I heard from a friend who knows a lot of rich people is the megayacht question. Do you own a yacht that is more than 150 feet long? If you are rich enough to buy that and afford to keep it up then you are up there in richness.

Answer 5

Even by asking strictly about income, there is still some other factors, specifically location. Someone who makes $50,000 in some small town in Montana, could be considered very rich. Whereas someone making $50,000 in Beverly Hills would probably not survive long. Personally, I'd be happy with $30,000 and would feel like I am living rather large!!

Answer 6

It really depends on what part of the country you are talking about. I believe that poverty and poor are the same financially. I just looked up the domographics of my town and the avg house income is around 45000. shocking to me...that would make me upper class...what a joke!

Answer 7

i would say anything below 30,000 yearly would, or should be considered poor. at that income level your just able to live independently. that doesn't include extra bills. I mean you have a rent pymt., utilities pymnts, car pymnt, food, insurance, and have them paid when they come in. but thats about all your getting. anything below that, and your going without one (or more) of the above. usually it ends up being ins. and food.

Answer 8

You're rich if you earn more than 400,000 a year and you are poor if you are single and earn less than 20/year.

Answer 9

Apply Mr Mcawber's rule. The more you earn, the more you spend. I am actually no "richer" than when my salary was half of what it is now, because I spend more.

Answer 10

I'd guess poor would be earning minumum wage. And rich? Hmm... 70,000?