Last week, I asked everyone, What is considered well-off? Well, here is what you said.
First, there was a major overall theme that I didn't even mention to start off: being debt free! I at least six individuals commented on how being debt free was essential to be considered well off. Along those same lines, several individuals said that having a positive net worth was important – you can have $100,000, but if you have $150,000 in student loans, what's the point?
A second major theme was passive income. Several readers said that generating a passive income was a necessity of being considered well off. The amount of income varied, but it was still a factor for some, and there were some great passive income ideas.
Another theme brought up was housing. Most excluded home value from the net worth calculation. Also, many said that it was reasonable to have mortgage debt at 40, but it should be paid off by 50.
Finally, several readers commented on how there was no true number. So said cover all expenses plus 20%, others said it varies by life style.
So, what numbers do The College Investor readers' consider well off?
Well Off At 30:
– No Debt
– Average Net Worth was $207,000
– The Most Common Response was $150,000
Well Off at 40:
– No Debt
– Average Net Worth was $585,000
– The Most Common Response was actually a tie: $500,000 or $1,000,000. Big range.
Well Off at 50:
– No Debt, including mortgage debt
– Average Net Worth was $1,214,000
– The Most Common Response was $1,000,000. Interesting that it was the same at 40.
So, are you well-off? Are you working on getting there? Do you agree or disagree?