Would you classify yourself as rich if you were earning $250,000/year, driving an Infiniti, and taking vacations on the beach? While some of you may think that's a large sum of money, others may think differently.
A recent WSJ article tries to clarify the "wealth effect" and states that "depending on where they live and the lifestyle choices they have made, they don't necessarily feel rich".
This is where the idea of buying what you can't live without and saving for things you really want comes into play. While these families are making $250K salaries, they don't feel rich because they are not able to consume what they want. Yes, they can buy food and clothes, but miss out on their normal fine dining experiences.
Others may consider $40,000/year to be a large sum of money. If budgeted properly, even this amount can lead to a very healthy lifestyle.
While the dollar amount does make a difference in this society, it no longer defines who we are.
Here's an example: I have 2 friends who earn practically the same salary.
Friend 1 - Dave
Dave is 26 years old and lives at home with his parents. His monthly expenditures include extravagant vacations and payments on his convertible.
Friend 2 - Jamie
Jamie is 25 years old and lives in New York City. She has a spacious 2 bedroom apartment that she shares with another friend. Jamie spends her time venturing around town with socialites and drinking champagne.
Among our circle, Jamie is known as "the wealthy one" while Dave is "the guy that lives at home". Why such the difference? Don't let your salary define who you are.
Does this happen in your circle as well?
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