At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
You could be earning $500,000 a year but still feel broke. How? Blowing it all on fast cars, luxury handbags, and champagne baths. Seriously, who does that? Let’s dive into what really determines if someone is rich, middle class, or poor. Spoiler alert: it’s not just about money.
It’s All About Perspective
Ever wondered what truly defines whether someone is rich, middle class, or poor? Is it the size of their bank account, the brand of their shoes, or how many avocado toasts they can afford? Let’s take a light-hearted look at this age-old question. It’s not just about money; it’s also about perspective.
1 Income: The Obvious One
When people think about who’s rich, middle class, or poor, income is usually the first thing that comes to mind. If you’re earning six or seven figures, you might be labeled as rich. If your paycheck covers the bills, an occasional vacation, and a nice dinner every now and then, welcome to the middle class. If you’re making ends meet but it feels like those ends are playing hard to get, you might feel closer to poor. But here’s the thing: income is just the start of the story, not the full picture.
2 Spending Habits: The Sneaky Determiner
You could be earning $500,000 a year, but if you’re blowing it all on fast cars, luxury handbags, and indulgent champagne baths, you might still feel broke. On the other hand, someone with a modest income who budgets carefully, invests wisely, and avoids lifestyle inflation could feel financially stable and comfortable. The takeaway? It’s not what you earn, it’s how you spend it.
3 Assets: The Wealth Builder
Assets like property, stocks, and savings are the true builders of wealth. Having a fancy car might look nice, but owning a home or investing in the stock market builds long-term security. If you’ve got assets working for you, chances are you’re on the road to being wealthy. If your main asset is a half-used gift card, well… you might have a little ways to go.
4 Debt: The Unwanted Companion
Debt can pull you down the financial ladder faster than you can say “credit card interest rate.” If your debt outweighs your assets, it can make you feel poorer, no matter how much money you make. The trick is to manage debt wisely—keep it low and under control to maintain that middle-class or wealthy status.
5 Social Circle: The Comparison Trap
Where you feel you stand financially often depends on who you’re comparing yourself to. If you’re hanging out with people who frequent designer stores and jet off on exotic vacations, you might feel poor by comparison. But spend a week living in a basement, and suddenly, the comparison makes you feel rich. It’s all relative, folks.
6 Priorities: What Matters to You
If you value experiences over things and have time to spend with loved ones or pursue your passions, you might feel rich regardless of your income. If, however, you’re all about the luxury lifestyle, you might not feel satisfied until you’re rolling in dough. Wealth is personal, and sometimes being rich means living a life that makes you happy, regardless of your net worth.
That’s a wrap
At the end of the day, it’s not just about the numbers in your bank account. It’s about how you handle your money, how you see yourself, and what you value most in life. Whether you’re sipping lattes at your favorite café or saving up for your next big goal, remember: wealth is as much a state of mind as it is a bank balance.
If you need any financial help or advice please get in touch with us at Super-Advice.
