Is a perosn who earns salary of $400,000 a year technically rich?

Answer 1

No. Upper middle class. Rich is defined as the top .5% of the population and that cut-off according to the IRS is 500K a year (adjusted gross income - meaning after deductions). It was in Time this week at my dentist's office:-))

Practical terms, 400K does not go far in very expensive urban areas like SF, London, Boston, NYC, etc. where the average apartment is over 1 MM. When I was younger (in my 30s now) and you told me I would be making over 200K, I would have thought I was rich. I do and I am not. I drive a 15 year old Toyota, shop at Kohls in the 'burbs for clothes and love the dollar store for bargains on everything else:-)

Perception, perception, perception.

Answer 2

It really depends on how the income is put to work. If, for example the person who makes $400k/yr (we'll refer to that person as you from this point on) lives a lifestyle where you pay more than three-fourths 3/4ths of that income just for living arrangements, then maybe not. Of course I'm saying if you spend $300k per year just to pay for your household expenses; not if the overall house cost is $300k at purchase. On the other hand, if you did buy that $300k household and are capable of paying it off in 1year then by all means, do so! Essentially, if you have at least $100,000 per year that you can invest without worry, then I would consider you to be fairly rich. If not, then you need to move or be very comfortable with your extravagent, small New York appartment. As a last note, always take into account that even if you work for yourself and feel secure that your market will sustain its level of activity, times are always changing and it might be nice to have a piggy bank to fall back on.

That's my take on the issue,
Greed

Answer 3

No. Much depends upon the balance sheet between income, expenses and debt. Also, how much savings and investment been accumulated. If you are depending upon your monthly income to get by, you are still a member of the 'working class'. You really require substantial capital reserves that are self sustaining and growing to be a member of the wealthy class.

Answer 4

The salary/remuneration for a particular job is the market value for a particular profession and designation at the city/town where the office is located. Job postings at websites like Monster,Yahoo HotJobs and Careerbuilder carry information about salaries. The Govt Dept of Labor,(www.bls.gov) Bureau of statistics has information about median salaries for different professions and details of additional compensation offered. Other online resources are salary.com and payscale.
Your salary will also depend on your educational qualification and how you handle your career.More details and links to relevant websites available at
http://tinyurl.com/rndxq

Answer 5

Technically yes

Answer 6

They would be in the 99.99th percentile of income in the world. I believe this would qualify a person as having a rich income. But if they piss it all away on booze and drugs, they wouldn't be rich for long.

Answer 7

If one cannot manage that stream of revenue to become rich, then he/she is not smart enough to receive it.

Answer 8

Rich is what you HAVE. If you spend everything you make, you do not become rich

Answer 9

technically, it is not a lot of money any more, but is good income !
keep plugging away at it !

Answer 10

depends on what you owe you may just be breaking even financing dosent mean it yours, not till its paid for.