How rich is 500k a year and what lifestyle it buys?
It’s more-than-enough rich.Over a sustained period of time, with proper investment, it’s a shitton - in the US it will put you in the 1% for wealth (currently at about $8mm), as well as income (currently at about $429K in the US per the IRS*), if managed properly.Problem is, how you measure and invest all that.With respect to “lifestyle” - that depends on the family. Some people spend a lot and live large. Some millionaires and billionaires aren’t particularly flashy, and tend to give a lot away. Donald Trump, a billionaire, has lots of gold-plated plumbing. Bill Gates has many times the billions that Donald Trump has, but stays away from gold faucets and still lives very very well - but he’s given most of his funds away.Here are a few rankings for you to help you figure out rank. But don’t confuse money and lifestyle - what money does is give you more choices as to how you want to live, but there is no one “millionaire lifestyle.”Net Worth in the United States: The Top Centiles, Charted - DQYDJNet Worth by Age Percentile Calculator (United States) - DQYDJWhat it takes to get into the Top 1% (2015)How Much Money It Takes to Be in the Top 1% In Every State (2015–2016)
What lifestyle can a family of 4 with a household income of $1.5 million a year afford?
The answer is….It DEPENDS!But seriously, it depends on where you want to live. In New York City you might even struggle, possibly in San Francisco, too. But in some parts of the US you could live a really nice life.And then there are the many other COUNTRIES where you could go….I guess what I am saying is, there isn't enough information about you and your goals and what you are looking for to know enough to answer this question.
What is the lifestyle of a person like with an income of about 2.5 lakhs per month in India?
Going anonymous for obvious reasons (I do not want to come off as a show-off to my friends).I believe I am the right person to answer this question because during my last 6 months in India, I am earning 2.499L per month in India. It was a sudden jump from 1.7L per month (post tax) so for the first 2 months, it seemed like I was getting a windfall. My wife is also working so in terms of life-style, we didn’t notice any change when I moved from 1.7 to 2.5 (aggregate household income moved from 2.9 to 3.7 L per month). We were however, able to pay-off our outstanding home loan relatively quickly. I did notice that taking flights seemed less stressful (because now it costs lot less as a percentage of your salary). I was also able to easily fulfill my social responsibility towards my extended family (cousins’ admissions to FIITJEE) without a second thought about disturbing monthly budget.Frankly, in a city like Noida, you can live a good life in 60–70k (monthly average over an year). If you are getting 1L per month (post tax, aggregate), or if you are getting 4L per month, your life style will be more or less similar (unless you have some big budget expenses from your extended family). However, I must highlight that neither of us drinks or smokes, we don’t have kids (I’m the situation will change with kids) and we are not shopaholics (especially if someone is into jewellery, it can take a toll). I still drive the same car (i20) because this is my first car (feeling attached) and it has very few kms on it.One more thing I must highlight which does not change our present but may change our future. With the kinds of salary and savings we are generating, my wife has started thinking about early retirement. It is still a thought but a few years back (when we just started our home loan) even this thought gave me chills :D.
My household income is around 300k for a family of 4. Are we middle class?
Likely upper middle class if you are in a high-cost-of-living area or urban area. If you're in rural Florida, it's definitely upper class. Upper class usually starts at 3x the median income for your family size and location. In San Francisco, the median income is $106,000 for a household, giving $318,000 for an average household (making you upper middle class for an average household size with your income). Adjusted up for 4 people, you'd have a slightly higher number (probably ~$350,000). If you're in Gainesville, FL, the median income is $39,000, giving $117,000 as the cut-off for an average household size. Adjusted for 4 people gives probably around $130,000 as a cut-off.
Is a household (family of 4) income of $740k a year after taxes good? What lifestyle does that income provide?
$740K per year, puts you in the top 0.3% of incomes in the US and top 0.1% in the world. That means 99.7% of the people in the US are getting by on less.Granted I have had clients who made more and could not seem to live within their means, but they were idiots just like anyone who would think this is a serious question.
Is $140K/year income for a two-person household a lot?
If two adults (married/living together, etc.) in a home collectively made $140K a year, would that be a comfortable income for them? Or would it be considered upper-class?
How rich is a salary of $800k a year? What lifestyle can someone afford on that income? For instance, what type of clothing, cars, homes, vacations, etc.?
Hella lot rich!According to this measurer How close are you to the top 1%? - CNNMoney, $450,000 annually is more than enough to put you in the 1% richest persons in the US. While in the whole world it will come out to be a even smaller percentage.So now you know that with around $ 800k annual salary ( Rs. 5 Crore) you can afford things which the top 1% get to use. You are roughly earning $70k per month which is well above the average annual income of a family in USA. Even after tax its around 50k a month.Buying 2 or 3 new cars like these wouldn't be a problem, thanks to affordable EMI and lease options. Maintaining these beasts would surely cost you significantly.Bentley Continental GT($250k) and BMW M6 Gran Coupe ($130k)Besides these you can buy a house of worth around 3 million with 20% down payment and EMI around 13k at 3% interest rate. Not including prior savings which might enable you to consider a house even more expensive.While talking about vacations you can easily travel business class on a regular basis and first class for a memorable experience. Luxury cruises will also be considerable.Basically, your problems shift from "How am I going to pay for rent/mortgage/car/food/tuition/life" to "What am I going to do about my investments/business/housing market/children/business/social life/spouse/in-laws/business/taxes/lawyers/useless family/over-leveraging myself/maintaining and growing my income?I personally with that kind of salary would first of all think about investing it somewhere where I can earn even while doing nothing ( Business ofcourse). Getting a salary even that high wouldn’t excite me as much as compared to a business profit made by my company even if its half of that amount.At the end of the day its up to you how you spend your money. You have the privilege to luxury things which most of us don't, but you have to be wise enough to choose what is essential or what is waste of money. It doesn't take long even for billionaires to be nearly bankrupt due to unnecessary spending and bad decisions.I hope now you have a brief idea what's its like to earn something close to $800k a year :)