I was having an interesting debate with some friends over the weekend about what is considered being “well off” these days? Especially, what do you consider to be well off at 30? What about 40 or 50?
While there were a variety of answers, I think that having $150,000 in cash and investments (not including a house) would be considered well off at thirty. By 40, I felt that one should have around $400,000 in cash and investments, and by 50, it should be $750,000.
Why does this matter? At 30, it doesn't really, but I think that people really want to know if they are “well off” or not. Just like reading how people make money or how much they have can be fascinating, it is nice to know how you are doing compared to others. Also, there was a lot of talk about what assets you consider: cash, investments, a house, what about other property or a business maybe?
So, readers, what do you consider “well off” at 30, 40, or 50? What to you consider to be part of the “pie” to be included in this. I would love to hear your responses.