Being a millionaire just isn't the same these days

[onehandle]

Source: AP/CNN

NEW YORK (AP) -- Renee Weese has reached an enviable goal -- she's become a millionaire. But like many others whose net worth has risen in recent years to seven figures, she doesn't feel particularly wealthy.

Not that long ago, the word "millionaire" conjured up visions of chauffeured limousines and extravagant shopping trips and elegant yachts. These days, a millionaire is more likely to be the guy or gal next door who saved carefully -- and perhaps benefited from the sharp run-up in housing prices -- but still worries about covering the exploding costs of children's educations, caring for aging parents and funding their own retirements.

Weese, 51, of Atlanta, Georgia, credits her good financial fortune to good-paying jobs and windfalls when her startup insurance company went public and, later, when it was taken over by a bigger insurer. Still, Weese worries about how far the money will go.

As she puts it: "I know I have more money than a lot of people do. But I don't feel I can sit back on my heels. I have lots of years ahead of me, and elderly parents I help financially a bit, and kids and grandkids."

Read more: http://www.cnn.com/2007/US/03/20/businessoflife.million.ap/index.html

---

Waaaaaaaah! Pity the poor millionaires!

[OhioChick]

1. Oh, Cry Me a River, Renee. n/t

[Digit]

15. Tell me about it!

People go on shopping trips spending more than I friggin make in a year (25K) when I am now 55 years old!
The media touts how we should SAVE more, but how in the hell can you on that kind of salary. Not only that, I am LUCKY to even HAVE a job! I have been unemployed more than employed for the last two years I will have you know!

I am partially disabled, but receive no disability income...so it limits the kinds of jobs I can do.

It really burns me when I hear millionaires complaining about not having enough money to do yada yada yada.

But you know, you can't take it with you. When we are put in the ground, or cremated according to your personal wishes, you will not have your millions, your possessions, or your credentials.

My personal beliefs are such as you will be judged by how you have treated others, and how you have evolved.


Myself, I am still working on it.

[Deja Q]

2. What next, somebody will write an article on how to scrape by on $150k/yr?

Oh shit. CNN already did.

[Liberal Veteran]

12. Something is definitely wrong with that story.....

Ah ha! I found it. They have two rental properties they can't rent out.

I was perplexed at how anyone with that income in Nebraska (where the average household income is 8 percent below the national average) living in a modest house on three acres, with no savings and no college funds for their kids could possibly be living paycheck to paycheck.

Either way, I have a strong feeling there is more to THAT story.....like maybe mom has closet full of Prada shoes and Gucci handbags or dad is at the casino every week.

[Blue_Tires]

27. hell, i'd trade places with them...

if they think life is rough WITH money, i'd be happy to show them what it's like without...

[otherlander]

68. "...they live in a nice but definitely not luxurious home

on a three-acre plot"!!! NOT LUXURIOUS!?!?! THEY OWN THREE FUCKING ACRES OF LAND AND A MOTHERFUCKING HORSE!!!

THREE ENTIRE ACRES!!!

I'm trying not to hate these people because the mom's a psychiatrist, and they actually work, but...

[tammywammy]

71. Ahhh, I remember that story

They just could barely afford the horse for their kids. :cry:

What maroons!

[fishwax]

81. wow

:wow:
:puke:

[CatholicEdHead]

3. "If I had a million dollars.... I'd be rich"

[flaliberal]

4. Those poor people . .

:sarcasm:

[Ignacio Upton]

5. While being a millionaire might not be as significant as it was before

It still means that you are rich...just not as relatively wealthy as in previous generations, thanks to inflation. Being a millionaire today would be like having $100,000-$300,000 net worth in 1907 (just guessing on that.)

[DaveJ]

9. It's about a 7 to 1 ratio

According to the article, "someone who bought $1 million worth of goods in 1957 would need $7.3 million to buy the same goods today, according to Federal Reserve figures." That's within your range.

[Warren Stupidity]

16. It is more like 10-1 but I won't quibble.

Lots of people who live in the urban zones of the northeast and westcoast have, on paper, net worth of 1,000,000 or more.

[raccoon]

52. I'd agree with that, overall, "It is more like 10-1."

For some things the ratio would be even higher. For rent/housing. And medical expenses.

[roamer65]

24. Yup , today's dollars are about 1/10th the value of 1940 dollars.

To be a 1940's or 1950's style millionaire you need at least $10 million in the bank.

[Ignacio Upton]

25. Random exchange rate question: Has the Dollar ever been worth more than

the British Pound? Or has $1 always been less than £1? It find it hard to believe that the dollar was worth less during World War II, for example.

[northzax]

35. not in the past century

at the height of WWII (1944) the rate was .24 pounds to the Dollar. remember, that was Gold Standard.

[muriel_volestrangler]

37. The closest was 1985, when the pound was worth $1.05

Under continuing economic pressure, and despite months of denials that it would do so, on September 19, 1949, the government devalued the pound by 30%, from US$4.03 to US$2.80. The move prompted several other governments to devalue against the dollar too, including Australia, Denmark, Ireland, Egypt, India, Israel, New Zealand, Norway and South Africa.

In the mid-1960s the pound came under renewed pressure since the exchange rate against the dollar was considered too high. In the summer of 1966, with the value of the pound falling in the currency markets, exchange controls were tightened by the Wilson government. Among the measures, tourists were banned from taking more than £50 out of the country, until the restriction was lifted in 1970. The pound was eventually devalued by 14.3% to US$2.41 in November 1967.

With the break down of the Bretton Woods system — not least because mainly British currency dealers had created a substantial Eurodollar market which made the U.S. dollar's gold standard harder for its government to maintain — the pound was floated in the early 1970s and so subject to a market valuation. The Sterling Area effectively ended at this time when the majority of its members also chose to float freely against the pound and the dollar.

A further crisis followed in 1976, when it was apparently leaked that the International Monetary Fund (IMF) thought that the pound should be set at US$1.50, and as a result the pound fell to $1.57, and the government decided it had to borrow £2.3 billion from the IMF. In the early 1980s the pound moved above the $2 level as interest rates rose in response to the monetarist policy of targeting money supply and a high exchange rate was widely blamed for the deep recession of 1981. At its lowest, the pound stood at just US$1.05 in February 1985, before returning to US$1.66 during the 1990s. As of August, 2006 it had risen back to $1.91.

http://en.allexperts.com/e/p/po/pound_sterling.htm

[nealmhughes]

54. I bought 2000 pounds when it was at $1.08 and falling when I was living in Scotland,

came back to the US after 3 months and it was waay up and used my $1.08 pounds as local currency...lived like a king, just thinking "$1.08!" every time I spent a pound!

[Psephos]

83. So that's what it's like to have a ton of money :-) n/t

[Liberal Veteran]

6. Gee, life must be tough in the top 8 percent.

I'm glad that some people are doing so very well, but I'm more concerned with the much larger percentage of Americans who are one paycheck away from losing everything.

[DaveJ]

7. I would feel bad for her...

If she had done anything to deserve it, such as benefit the world around her. As it stands, it looks like she was just in the insurance business and had landed some high paying jobs. Not that spectacular, so I'd say her financial status is what an average boring workaholic should expect. And she was lucky that she got that, since most people get much less than they deserve.

[unblock]

8. she's right, 1mm is NOT what it used to be

there are two classes in america, and fundamentally, you need a LOT more than 1mm to be in the upper class.

people with a "mere" 1mm are certainly better off than those with a lot less (duh) but they fundamentally have a lot more in common with people who live paycheck-to-paycheck than with people who buy and sell corporations.

i've posted this sentiment before, and gotten scoffed, and i expect i will again, but it's true. anyone who says otherwise is missing the forest for the trees.

[Kagemusha]

11. It's true but I don't blame people who see it as besides the point.

Just a matter of perspective.

Incidentally, I'm not rich, far from it.

[DaveJ]

13. At least one can retire on $1m

That's the main distinction. Granted, you'd have to move to an obscure place where cost of living is cheap and live on like $30/yr, which is not hard if your home is paid off.

[northzax]

36. but for most people worth $1m on paper

most of that wealth is in their homes.

[TomInTib]

17. Thank you for this reply, unblock.

I happen to be one of the "Bad Guys".

But I support a lot of people and I pour any remaining energy into our community.

Difference in having a lot and not having a lot is that when I was poor (and I have been too poor to eat), my potential collapse would have affected only me and my little family.

If I should fail today, I would drag a lot of fine people into the slipstream.

That is pressure. Even though I am in no danger of failure (I hope), I fall asleep and wake up thinking about it.

Every day.

[DaveJ]

18. What do you mean by you're a bay guy?

And what do you mean by dragging fine people into the slipstream? If I understand correctly you have plenty of money and employees? But do the employees have a chance of obtaining the future you have?? Maybe I misinterpreted.

[TomInTib]

19. What I meant was...

If I should fail, my people would be out of jobs in a hard economy.

We all have a chance.

And I do not have a whole hell of a lot of money. I give most of it away and keep only what it takes to live.

But I am reasonably comfortable.

But I work my ass off.

[DaveJ]

20. I hope you can keep it up

I'm planning on starting my own business one day soon and think about how I can benefit society so I was just wondering what you're attitude is about your situation. Obviously you're not a bad guy but when you are the 'boss' it's a delicate line one which to to balance. I guess you're saying that people who 'do' are keeping the economy running. And everyone has a chance at that.

[TomInTib]

21. Here's the trick...

If you are planning a start-up.

Make a list of what your competition is doing wrong, pissing off their customers, etc.

Then don't do whatever it is they are doing wrong.

And become involved within your community.

Good will beget Good.

Every time.

Good luck.

Just take a deep breath and do it as soon as you can.

[DaveJ]

23. I'm still trying to finish my product...

As of yet I'm not familiar with any competition since my product is fairly unique, so I'd actually have to do some research on that front. I do understand the relevance of your concept though, so thanks. In terms of getting it done fast, I'm trying, hoping to get something to sell before the holiday season. I think we are on the same wavelength so it's making me optimistic about it all.

In terms of the subject of the OP I think she was just a fortunate workaholic who, as far was explained, did nothing unique to deserve a fortune, so she has no reason to complain.

[TomInTib]

26. Here is my most recent adventure...

http://www.fitniks.com/news/

click on the ABC News thing. They came unannounced. Nothing was scripted.

We are rolling this out nationwide.

Check out the other interviews, too.

[w4rma]

40. That looks like it has the potential to be very successful. My compliments. (nt)

[Carni]

55. What a clever idea!

Good for you! Congrats! :)

[sandnsea]

30. It's the top 99%

What the hell would you call being one of only 2.5 million in a country of 300 million?? Be one of only 8.7 million in the entire world??

I swear to god I am baffled at what it will take to get people to understand how few people are actually rich.

[redqueen]

88. It really is amazing...

:shrug:

[proud2BlibKansan]

32. My mom died a millionaire

She just worked her ass off and saved every dime she could. She played the stock market and was good at it. But she and my dad basically lived paycheck to paycheck. They were certainly not considered wealthy.

[PittPoliSci]

50. you're right.

there's a huge difference between people who work hard and are successful than the inherited upper class such the likes of the rockefellers, mellons, et al.

[Kagemusha]

10. They should just quote Patrick Ewing and Latrell Spreewell

That'd settle things darn quick

[truthisfreedom]

14. A net worth of $1M certainly doesn't guarantee an income of $1M/year. In fact, it doesn't guarantee

an income of even $100K/year. My friend owns a coffee import business which is so competetive that at over $12M/yr in sales, he's still never gotten paid more than $120k/year. The net worth of the company is a fraction of the yearly sales. Some businesses simply don't deliver when it comes to profit, because there are way too many competitors.

[DaveJ]

22. True, but the lady in the OP is not so ambitious

I would say that she is semi-intelligent and a massive workaholic and made the best of her situation. But I don't see how she did anything 'great' for the world deserving of being a member of the financial elite. Starting a coffee house probably is on the same scale. People who start average businesses should be better off than average but to expect much more should require some unique effort, IMHO.

[sandnsea]

29. This is a million in independent wealth

Its more than having a business. And, btw, an income of $120,000 a year is better than 90% of the country so your friend is doing very very well.

[AJ9000]

31. "an income of $120,000 a year is better than 90% of the country"

I wonder how much of that is taxed? Probly quite a bit. And much of it going to sustain a gigantic military - very discouraging.

[sandnsea]

28. Only 8.7 million globally

The US has 2.67 million.

44 million uninsured.

And we keep worrying more about the obvious delusion of becoming rich rather than the necessity of seeing a doctor.

http://www.cnn.com/2006/BUSINESS/06/21/btn.globalrich/index.html?eref=sitesearch

[Mechatanketra]

33. Eh. Problematic definition, methinks.

(Geek Warning ...) In the Dungeons & Dragons game, several spells characters may cast require ingredients (usually gems) of a certain monetary value; this has led to a common "ha ha only serious" joking that one can easily obtain a "1000 gold piece diamond" by visiting a jewelcutter shop and paying 1000 gold pieces for any unsettable shard or dust fragment. It'll never be jewelry, but you can't deny that it was valued (by you) at 1000 gold pieces ...

A real life example of the same problems: real estate depreciation. The hotel my brother works at counts the estimated devaluation of its building due to age as a "loss" in calculating profits. But it also counts money spent on upgrades and repairs, which presumably offset that devaluation, as another loss. The real "loss" though, ultimately, was buying the building in the first place — while theoretically some portion of that money might be recouped in the future, it doesn't change the fact that right now, it's been spent. Spending money on a hard resalable asset leaves you in a better position than, say, just giving it away, but it's still gone; grouping its estimated resale value with flat money as if they were the same thing is a self-misleading fallacy.

The point here being, it's not surprising that net worth valuations would conflict with lifestyle expectations, because "sale value" of material assets is an utterly arbitrary distinction; an appraiser's optimism can inflate your taxes but it won't buy eggs.

Because of this, to me "millionaire" does not mean someone with total material assets estimated greater than $1M sale value; I suspect to a lot of people share the sense, at least unconsciously, that a more intuitive definition would be either someone with more than $1M annual income, or someone with more than $1M right now in liquid currency exceeding their collective debts. As the Aesop goes, money has no value until it is spent — and by extension, no value until it can be spent.

[Uben]

34. retiring on a million

I did it! At age 45! And I tell ya, from the viewpoint of a guy who was a blue-collar worker for 30 yrs, it doesn't suck! I inherited about 1.5 mil 7 yrs ago, and I decided that was plenty to retire on....and it is! A million certainly is not what it used to be, for sure, but being able to manage your own time....priceless!

I'm not a greedy person. I always said if I got a million, no more alarm clocks, no more time clocks to punch, no more making other people rich!

I purchased a few older homes, fixed them up and rented them out. Now, I work a few weeks out of the year repairing them, and that's it. I give at least 10 hrs a week of my time to charitable causes, mostly for kids. The rest of my time is spent here on DU, out in the yard manicuring the lawn, or on the lake fishing! Since the males in my familly for the last three generations have not lived past age 63, I am taking advantage of being able to have at least some retirement! I am 52.

I used the income from the rental properties to put my oldest child thru college. She graduates in May with her MBA, and a 4.0 GPA! I have another that is 14 yrs old, and I am now looking to sell those properties, and put that money away for her college.

I have never owned a new car, and probably never will. I get nothing from the distinction of owning a bright shiny new car. I had rather let someone else pay the $10,000 for that priviledge, and I'll buy it a couple of years old, and drive it for five or six years.

Friends call me frugal. Well.....yeah! I am a simple man, and all I want is a simple life where I am in control of MY TIME!

[muriel_volestrangler]

38. 2 definitions being used in the CNN piece - with and without primary residence

which will make a lot of difference, especially in some areas.

According to research from Merrill Lynch & Co. and the consulting firm Capgemini, some 2.9 million people in the United States and Canada have net worths of $1 million. The New York-based companies count all of an individual's financial assets except a primary residence.
...
He notes that many baby boomers -- those born between 1946 and 1964 -- have been contributing to company-sponsored 401(k) retirement plans and similar employer-backed programs for 25 years "and those account balances have mushroomed."

In addition, many of these people also own homes that appreciated greatly in the boom market of recent years.

"I think if boomers look at the numbers, between your 401(k) and your home equity, you may be a millionaire -- or pretty close," he said.

A house worth half a million dollars isn't that extravagant in many areas.

And whether you 'own' the money that will provide for your retirement makes a difference too. Say you want an income of $20,000 from it - that would need perhaps $300,000 in a fund to provide as an annuity. Do you count that too?

[Raven]

39. Disaster just a few years away!

I agree that you don't need 1m$ to have a decent retirement but you sure are going to need more that $50k or $100k in savings (which is all the article said most boomers have). What happens when these folks can't work anymore? Social Security isn't going to go very far.

[MadHound]

41. Let's see what a million means

It should mean that your house is paid off. No debts. And that you can invest that cool mil into accounts that, if you're a bit more on the risky side, net you $100,000/yr. If you're a bit more conservative, and don't want the tax hassle, $50,000/yr from tax free muni bonds.

Now while $50,000/yr doesn't sound like much, especially in large cities, to most of the country that's a nice salary, one that enables you to live comfortably for the rest of your life.

I have little sympathy for this woman. She's in the top of the wealth bracket, yet she's whining that it's really not enough. Another sign of what's wrong with much of our population. Greed, greed and more greed. Hey lady, at least you're in a position to help your parents, kids and grandkids "a bit" The vast majority of Americans have serious problems doing just that.

[AnneD]

47. I really am not jealous of her good fortune....

but it is just that-good fortune. In a few places, she did the right thing and she has a good job to boot. Good on ya mate.
I know countless folks that were in the same position, BUT, the company went belly up, they are in debt and can't find a decent job now, had an unforeseen disaster like an accident or health care crisis. Hell, even a nasty divorce is a disaster and can put you in a hole that you could take years to recover from. Folks in NOLA that HAD insurance may never recover-so what did they do wrong-nothing. And yet do you think those folks are doing well-hardly.
What is missing form the piece is humility and thankfulness for her blessings and the gratitude that she can provide for herself and her family. There are many that can't even do that-and are they any less deserving? I think not. Life happens and be thankful if it is good news.
I have found that sometimes those with the least to give are the first to give-and give for the right reasons. what was that saying about it being easier for a camel to go through the eye of a needle.........
I am happy for her but she needs to stop crying about what she can't do and be thankful for what she can do.

[mainer]

48. How do you get 10% a year from your investments?

I'd like to know the secret to that. Stocks aren't that reliable, and munis are only paying 3-4%.

[melm00se]

59. judicious selection of mutual funds

Symbol...Name...............return since inception

TRRDX Retirement 2040 ....17.98.......09/2002
TRRCX Retirement 2030.....17.88 09/2002
PRMTX Media & Telecomm....17.44 10/1993
TRRKX Retirement 2045.....16.41 05/2005
TRRBX Retirement 2020.....16.28 09/2002
TRREX Real Estate.........16.22 10/1997
TRMCX Mid-Cap Value.......14.18 06/1996
TRRAX Retirement 2010.....14.06 09/2002
PRISX Financial Services..13.57 09/1996
PRSVX Small-Cap Value.....13.42 06/1988
PRNEX New Era.............13.16 01/1969
PRHSX Health Sciences.....12.45 12/1995
PRWCX Capital Appreciation12.18 06/1986
TRRJX Retirement 2035.....12.14 02/2004
RPMGX Mid-Cap Growth......11.63 06/1992
TRRHX Retirement 2025.....11.59 02/2004
OTCFX Small-Cap Stock.....11.34 06/1956

[mainer]

60. I guess it depends which period of time you choose

I've been invested in various mutual funds (mostly from the American Funds group) and while I did great during the Cinton years, lately things haven't looked good at all. My son, who invested in his very first IRA a few years ago, has seen his investment go down -- not very encouraging for a kid who was taught all his life that one should invest for the future! I would be thrilled to get a guaranteed 10% a year.

[melm00se]

42. the demographics of a "millionaire"

Fifty-seven-year-old male, married with three children.
About one in five is retired.
Self employed
Own/operate a "dull/normal" business
about 50% of the wives are stay at home mom's
Household median income is $130k
Median net worth is $1.6 million
Homeowners (~50% have been in the same house of 20+ years)
80% are self made millionaires (no inheritance for them)
now here are the biggies and things to emulate (IMO):
Live well below their means (very few have this year model cars...most drive American cars and off the rack suits)
the household money manager (usually the wife) are meticulous budgeters
Education is important (80% hold a bachelors degree or higher)
Investors (80% save 15% or better of their annual income)
Tightwad

http://www.nytimes.com/books/first/s/stanley-millionaire.html

it is a very interesting and suprising portrait.

[Javaman]

44. I emulate the "biggies" and I'm not a millionaire. :(

where did I go right? LOL

[melm00se]

45. without knowing you?

I would speculate: time.

[Javaman]

46. Dang, you got me. LOL nt

[sandnsea]

65. Median income - $130,000

Which is the top 5% of all income earners in the country. Anybody can become a millionaire on a $130,000 income. The problem is that 95% of the country will never even get to that income bracket to have an opportunity to join the 8 million millionaires.

[AllieB]

67. Not if you live in an area with a high cost of living

have children, and significant college loan debt. I'm not saying that 130K is poor, but in certain geographic areas and certain financial circumstances, it's a lot tougher to become a millionaire.

[melm00se]

84. that is not necessarily true

as most people, regardless of income level, spend right up to their income level. Most do not live below their means.

[qwlauren35]

43. Actually, I do.

It shows how strange our cost of living is.

I'm sorry that others don't understand, but I sense that this woman worked her *ss off to achieve this, and to find that it no longer means what it used to is probably painful.

It's like hitting 753 home runs, and finding out that the record inched up while you weren't looking.

Additionally, if she has her own business, her money probably isn't liquid anyway.

"Waaaaaaaaah! Pity the poor millionaires!" was uncalled for. The woman wasn't asking for pity. She was just expressing some disappointment, and some realistic projections about what would be done with the money. She's going to support her parents.

Some of you folks are really annoying. Every candidate in our party has money. Heck, look at Kerry and Edwards. Just be glad if this woman stays a Democrat. With the "Waaaaaaaaaah" attitude, it's small wonder some folks decide that they AND THEIR MONEY are better off with "The Other Party".

[callous taoboy]

56. Yeah, you know what else is disappointing?

I'll be teaching for the rest of my life (no problem with that) yet won't in any way be able to help my parents out. Hell, not that I really want for much, but just about every item of clothing I own is second hand, frayed and a poor fit. I hit a deer last month, a devastating $3,000 in damages so I won't be going anywhere this summer. She needs to cut the whining. Like I said in my other post, I don't begrudge people their millions, just spare me any whining about your poor plight.

[mainer]

49. My dad died a millionaire. And he was just a fish cook.

He earned at the most $45,000 a year, working 16 hour days. But he saved every penny and put it into stocks which he bought and held, and automatically reinvested the dividends. He never went anywhere and he drove his cars into the ground. He paid for his 2 kids' college educations 100%, and he worried all his life about his retirement. Yet when he died, at 83, he was worth million -- not including his junky old house.

So yes, the average person CAN do it. But it takes discipline and, I'm sad to say, a lot of workaholic behavior.

[raccoon]

53. It also takes a lot of luck, including not acquiring a disability or

running up enormous medical bills.

[Toucano]

61. That's very sad.

It sounds like your father didn't get to live much of a life.

I hope it made him feel happy anyway.

[mainer]

63. Yes, it is sad. I wish he'd spent it.

He always talked about the things he was going to do "someday" like buy a Winnebago and drive around the country. But he never got around to it. I'd much rather he'd enjoyed life than left us kids a big inheritance.

[Toucano]

74. Maybe providing for his family is what he most enjoyed.

Still, I hate to think about leaving any "somedays" when I'm gone.

[sandnsea]

64. It's different today

Half the households today don't bring in $45,000 and a lot of those are two earner households. The income disparity wasn't as great during your dad's working years. Although he must have gotten pretty lucky to have not lost everything during the '87 crash and 9/11 sell-off.

[callous taoboy]

51. This teacher is reaching for kleenex....

I don't begrudge her for her millions. She just needs to watch the whining.

[wordpix]

57. this one, too. Boo hoo for the whiny millionaires..

[earth mom]

58. I know a married couple like this.

They have done very well in life but it's just never enough! It gets old listening to them worry and fret. I'd like to have seen them live on what my husband and I lived on for years and years-they would have freaked! :eyes:

[slackmaster]

62. File this under "No shit, Sherlock!"

And the fact is, $1 million doesn't go as far these days as it used to. For one thing, it's vulnerable to inflation -- someone who bought $1 million worth of goods in 1957 would need $7.3 million to buy the same goods today, according to Federal Reserve figures.

Even at a low rate of inflation, the cost of things goes up over the long haul.

:dunce:

[outofbounds]

66. Wow, I guess I'm the richest guy in here.

I have a wonderful family, an average sized home, I have decent health. I have just enough money to get by and I do waste a little to much. Money doesn't make one rich, it makes one wealthy. Huge difference. A million dollars doesn't go as far as we all thought it would, but what does that mean? Do we really need a 23'000 sq ft house? A hummer a Benz and 3 or 4 more lavish rides? A plane or a yacht? Would that make you happy? The answer is no. You make you happy, money just makes it easier to pay bills and and stick your nose in the air.

[Sapere aude]

69. I'm learning that lesson after 61 years. I think that I don't care anymore what people think of my

position financially. Every time I go to a party where I am not known and someone introduces me, the first question anyone asks is what do you do for a living or where do you work. It is a way to get an idea what people earn. Basically they are measuring you up to themselves or others at the party. Many times I was the one earning the most but now that is not important to me.

My wife and I are downsizing. We are selling our home to buy a much less costly one and are going to pay off debts and not owe anyone anything. The house we want to buy is not impressive and like the song says, if you don't happen to like me, pass me by!

Many here would say I am fortunate to be able to do what I am doing but fortune had a little to do with it. I worked hard and earned the chance to downsize.

[outofbounds]

73. Exactly!

Wants and needs. People confuse the two far to often. If you want to impress people impress with character and ethics, and then the money will probably come. You don't need $150.00 sneakers you want them. If you buy a $40.00 pair, your feet are still covered and have some money for a rainy day.

[sandnsea]

76. I can't afford a $10 pair

Some people just don't get what 1/3 of the country earning less than $11 hr means.

[outofbounds]

78. I do.

And my wife does. I'm fortunate to live in an area that prices are relatively low. But I chose to live here. A single person or parent its just about impossible. But it is possible, its just not nice. Its existing not living. The best thing I ever did was go to a job placement company they landed me a job that I enjoy doing and the pay jumped half again what I was making before.

[sandnsea]

80. $45,000 median income

Median household income - lots of them with 2 incomes. The only real difference between $10,000 and $45,000 are the govt programs you qualify for. The people at $45,000 are struggling just as much to make ends meet as the $10,000 who makes ends meet with govt programs. That's half the country. And that's what the other half doesn't get. It's just not economically feasible to believe half the country is going to be able to change the dynamics of our economy by getting an education. Our economy is dependent on there being a lower class. So be it. But it would be nice if people would quit pretending that half the country can become millionaires if they just budget and save enough money.

[outofbounds]

82. I believe you

That is about what my wife and I earn a year. That will get you a small home and a couple of used cars. By the time you eat going to a Dr. or Dentist is a hard thing to pay for. I try to put money back but there is always something that breaks or someone gets sick or hurt. If we had children that lived with us it would be even tighter. But the bills seem to get paid, just can't build enough of a savings acct to take a vacation let alone retire.
As far as education is concerned we spend more and more money yet get less results. Our schools graduate people that can't read to keep from giving them a complex. I think our kids deserve to be taught the essential material to be a productive member of society to have a chance to make a living wage. I feel like teachers are teaching social ideas, current events, intelligent design / evolution and not spending enough time on the three r's.

[sendero]

70. If you are a middle class couple..

... with kids to put through college, expensive health issues, and about a decade from retirement, well, a net worth of a million is better than being broke but you are by no means rich.

[Zywiec]

72. My father was a civil servant and died a millionaire

He was very frugal and always stashed away his money. We used to joke about him "driving 100 miles to save a nickel". We laughed then, but it taught us the power of saving every way you could. Of course he grew up after the depression, so that might have had some influence on how he lived his life. My mom now is luckily set.

[ProudDad]

75. Here in California

we have a lot of paper millionaires. Especially elderly people who've paid off a home in a "desirable" area.

They're just one major illness away from the street.

I pity THOSE millionaires...

They're like me, one major illness and I'm totally broke -- can't afford "health insurance" and can't work. The repukes and conservative Dems would say, "tough shit, Sherlock. You should have thought of that before being born into the harshest capitalist economy on Earth."

[sandnsea]

77. Houses don't count

In the statistics I looked at, the millionaire classification is separate of house wealth. Although I do think it is incredibly sad to work your whole life, pay off your house, and then turn it over to a catastrophic hospital bill or nursing home at the end of your life. Makes the whole thing seem pretty futile to me and I know a good 70% of the country will do this exact thing. Well, except for the very wealthy who tie their money up in trusts and foundations and corporations.

[fujiyama]

79. I don't really begrudge anyone for doing well financially

but anyone with a net worth of over a million dollars isn't getting sympathy for whining about it not being enough. The only area I can sympathize with anyone is health care costs, but even there, with that sort of money, you can fall back on something. The poor and working middle class are stuck paying off debt for much of their remaining lives (especially considering the recent bankruptcy legislation) if some devastating health problem occurs.

After all, we have over forty million people in this country with no health insurance. We can imagine that many of those people are also in poverty.

It's not great for the middle class either (especially in certain parts of the country), and I worry about my own family's financial well being (especially regarding health care costs), but I understand that there are people in more difficult financial situations.

If a lot of these wealthy people would put things into perspective, they'd realize as tough as it is for them, they're still better off than some 90% of the country. If you have that much money, and you're feeling financially tight, it may be an indication that you need to cut back your lifestyle. Yes, I understand that it's often dependent on cost of living, but hey no one ever said San Francisco or New York City were cheap....And as for inflation, the rate has been very slow for the past fifty years. Granted, with ever increasing energy costs, that will definitely increase.

[raccoon]

85. What planet are you living on?

"And as for inflation, the rate has been very slow for the past fifty years"

It was low in the '50's, picked up in the '60's, went into passing gear in the '70's and early '80's.

[Sapere aude]

86. Remember 12% inflation after the Vietnam war? It even made a republican put on wage and price

controls.

President Nixon Imposes Wage and Price Controls

August 15, 1971. In a move widely applauded by the public and a fair number of (but by no means all) economists, President Nixon imposed wage and price controls. The 90 day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. Inflation had been raging, exceeding 6% briefly in 1970 and persisting above 4% in 1971. By the prevailing historical standards, such inflation rates were thought to be completely intolerable.

The 90 day freeze turned into nearly 1,000 days of measures known as Phases One, Two, Three, and Four. The initial attempt to dampen inflation by calming inflationary expectations was a monumental failure.

[raccoon]

87. I remember the wage-price controls. nt

[redqueen]

89. Unbelievable...

These people should be the most aware of what those earning MUCH less than they do are dealing with... if they, with all they have, are still worried... well then... hello?

But instead, it seems that far too often the main focus is on how to get more for themselves, instead of how to make things better for all of us (devoting more time/attention to politics, I mean). I wish these people would look at healthcare, taxation, corporate tax laws, etc... and start getting politically active. I wonder how many do that, versus how many are just too busy working their asses off to get more for them / their families.

[file83]

90. This article is bullshit because of this ONE sentence:

"On top of that, we have a pretty expensive lifestyle, living as we do in Southern California," she said.

Alas, which brings us to the "bullshit" part of this story. This isn't about how $1 million isn't going as far as it use to. This article is about whiny, materialistic, egotistical, selfish, spoiled Americans caught up in their own self pity of how the Jones' next door have better stuff than them. They WANT MORE. That's what RICH people always want: MORE.

They never know when to stop and will crush anyone they can to get it. Which brings us to some of the motives for this Iraq war, abandoning the citizens of New Orleans during Katrina, and a whole other slew of Republican caused disasters:

GREED.

Furthermore, this woman claims that she's concerned for the future of her children with rising education costs and what not. BULLSHIT. If she really was concerned about that, her family would change their "lifestyle" by selling their home, moving to a cheaper part of the country, and stop being so fucking materialistic.

Then she would discover just how far her $1 million could really go.