Free Ebook.

Enter your email address:

Delivered by FeedBurner

« Star Money Articles for the Week of April 17 | Main | Benjamin Davis and the Journey of a CFS-sufferer towards Early Retirement »

April 24, 2017


Feed You can follow this conversation by subscribing to the comment feed for this post.

Ayuuup. This is how someone who brings in $100k a year can still be considered poor. In my view, a person isn't genuinely rich unless they can live beneath their means. That means you can be rich regardless of income, as long as you live below the money you bring in.

I don't see a link to the original survey in the article, but if their raw data includes zip code, it should be able to tell how much is related to local cost of living. In silicon valley there's over a million "households that brought home a combined income of $75,000 or more" because median household income is >90K here, and due to high housing costs, those at the low end of this range are very likely unable to save. The question would be whether this subset has about the same paycheck-to-paycheck rate as the >75K in zipcodes in flyover, and I would guess the answer is it's much higher. I think this distinction is important because if a family is living paycheck-to-paycheck while building up home equity, that's really savings as opposed to consumption which is gone forever.

Amen FMF! It's amazing how many people don't get that it's not income or net worth alone but the RATIO of Net Worth to Living Expenses that determine your financial independence. Even mainstream media misses this often. Also, it is important to translate the high income to corresponding net worth if anyone is interested in FIRE.

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.