What Income Level Is Considered Rich Obama considers single people making over 2. He has specifically called for raising taxes on singles making over 2. Yet, hes been unable to pass any tax increases because I dont believe most people agree with him that 2. Image/httpImage/image.jpg_gen/derivatives/original_940/mila-kunis-forbes-list-of-highest-paid-actresses.jpg' alt='Watch Cry-Baby Online Forbes' title='Watch Cry-Baby Online Forbes' />Thank goodness there was at least a compromise with Congress at the end of 2. Why 4. 00,0. 00 4. Im not sure. The government still harkens back to its old days of believing one spouse should stay at home. There are two aspects of monetary wealth we can focus on Income and Capital. Some make a lot of income, but have only a little amount of capital since they are either starting off in their careers, or havent saved and invested an appropriate amount. Thats not going to happen to you because you read Financial Samurai and will follow my savings guide to ensure capital accumulation. Meanwhile, there are those with a tremendous amount of Capital, with little income given they may have inherited their wealth but have no income generating skills. Capital heavy people may have invested skillfully over the years, built great companies, or were incredibly disciplined in their savings. There are many different types of folks in the Capital heavy category. Its not a bad place to be at all. Ideally, its best to have both high income and a large capital base. Watch Cry-Baby Online Forbes' title='Watch Cry-Baby Online Forbes' />This is my goal, and therefore my goal for all of you as well. In this post, well focus on the income side of the equation and what to strive for just in case we dont have a trust fund from mom and dad. HOW MUCH INCOME DO YOU NEED TO BE CONSIDERED RICH Instead of just saying what I think, Im going to share my thoughts on various income levels per person for populations living in coastal cities such as San Francisco, New York City, Los Angeles, Boston, and Washington DC and work out the answer. Watch Cry-Baby Online Forbes' title='Watch Cry-Baby Online Forbes' />Obama considers single people making over 200,000 to be rich. He has specifically called for raising taxes on singles making over 200,000 and couples making. Gail Turley, 33, from south Wales, bought her daughter Kayla a Cry Baby doll after she asked for it repeatedly when shed seen the advert but was horrified to find. The idea is to focus on the more expensive parts of America, which can therefore translate into living in other expensive countries in the world such as Paris, Hong Kong, London, Tokyo. Of course, if you move to much cheaper places, youll be considered that much wealthier. Various Income Levels5. Not rich, but lower middle class. After contributing 2. K and IRA, you are left with 2. With an effective tax rate of about 1. Not rich, but middle class. After contributing 1. Notice there is no more 5,0. IRA contribution because you make over 6. Thats right, the government doesnt want you to save money if you make over 6. Hopefully, you are following my savings guide and saving another 2. Youve got around 4. Upper middle class. After retirement contributions, you are left with 1. You boost your after tax savings rate to roughly 3. By the time you are making 2. Kindergartendaycare may run 1. Youre left with 2. Not bad. 3. 50,0. Still upper middle class. After retirement contributions, youre left with 3. With a 3. 0 after tax savings rate, you have 1. Your family has grown to 4, and you seek a bigger home. An average 3 bedroom, 2. San Francisco will run you about 1,3. Were not talking anything super fancy at 1,8. Your mortgage at 3. I choose 1. 1 million because that is the maximum level for mortgage interest deductibility. As a result, youre left with about 1. Youre doing well, and if you are frugal, you can certainly save more than 7. K contribution. 5. You are rich With 4. Thats right, you are paying around 1. Undeterred, you crank up your savings to 3. Subtract 7. 0,0. Then subtract another 4. With around 7,0. You dont have to work for a living You are also considered richIf you have passive income that can cover your desired daily living expenses, then you have all the freedom in the world to do whatever you want. Here is a great post on how to build more passive income for financial freedom. I have a target to make 2. I spend less than that each year and still want to save a good portion of my income. As you can tell from the examples above, the tax bill gets quite onerous the more you make. Can you imagine paying roughly 1. Ive allowed for a larger house for family and some lifestyle inflation. However, Ive stuck to my savings guidelines for every single income level to ensure a strong capital base come retirement. For 2. I use Personal Capitals free financial software to not only methodically track my net worth, but manage my cash flow and run my investment portfolios at least twice a year through their Portfolio Fee Checker. I discovered I was paying 1,7. I had no idea I was paying. Personal Capital also has a great Retirement Calculator where you can run your numbers to see whether you are on course. The above average person takes action and leverages free technology to his or her advantage. Winx Club Dark Sky Full Episode'>Winx Club Dark Sky Full Episode. SO HOW DO WE GET RICHDepend on yourself. Earning a high level of income is a choice, no matter what the naysayers tell you. It is up to each of us to further our education to develop a skill set that enables us to earn more. It is up to us to work longer than our peers, so that after 2 more hours of work a day, well have made over 6. Dont you think you could develop something amazing with 6. You know you can. Get a mentor. If you want to learn how to become wealthy, learn from someone who is already wealthy, not someone who tells you how to get wealthy without being wealthy. Watch The Book Of Esther Hindi Full Movie. Those folks are charlatans, and some do it very well, which is why they are wealthy. Instead, seek out a mentor and do everything possible to ingratiate yourself into their circle. Successful people want to give back. Its the way they are hardwired. Remove disabling beliefs from your mind. Wherever you go, there you are. You mind is either like a power plant of positivity, or a cesspool of negativity. You must believe in yourself, otherwise nobody else will. I am so internetcomputer illiterate that I thought there was no way I could start a website, until one day in 2. I said ,fuck it and got it done. Im only slightly more literate than a doorknob now, but at least things are running and I can just do this full time if so desired. Go the traditional route. Earning six figures and saving millions of dollars is straightforward. It just takes time. When you are incredibly rash, you do stupid things and screw up your financial goals. Save and invest even 1. Be your own boss. Time and time again, you stumble across stupid things that turn out to be big hits. Twitter, for example, was one cockamamie idea that has revolutionized the way we communicate. Airbnb is another idea that has helped lower costs in the hospitality industry.