Comments on: What Is A Lot Of Money To You?

By: Mr X

Mr X — Wed, 14 Oct 2009 05:54:08 +0000

Wow great article. I am at the point in my life where I question what is a lot of money. I am single and live in the SF bay area and I make about 62,000 a year and it does not seem like a whole lot of money at all. I am a decent saver but even so it seems like an eternity before my bank shows any worthwhile increase in savings. Could be that I’m almost 30 and realize 62k a year isn’t going to get me a house and what not that’s for sure. If I leave the bay area my salary is going to be tough to get since I work in the high tech industry, though living here I just don’t see a happy fulfilling living in the long run. Wish I knew what to do? Money makes me feel pretty blah and I have about 40k saved in the bank. What a joke, 40k, lol. Takes years to save and could be gone in a flash. There must be more to this life, I really hope so.

By: Yatouhi

Yatouhi — Wed, 08 Oct 2008 13:14:08 +0000

Well….I am a farmer, I am 28 and have just over $3000 in the bank. No 401k or IRA. But I eat some of the best and freshest food on earth. I breath fresh air and get plenty of exercise. I dirve a truck from the 1980s and don’t own a TV. To me, getting a computer and being able to connect to the internet was ALOM. Granted if I made 125K a year I would retire in two years. I think there are checks and balances for everyone. Love all the comments!

By: Schwamie

Schwamie — Wed, 27 Aug 2008 21:18:26 +0000

This is seriously an individual’s decision and is relative to their own situation. I fully agree that net worth is driven by age (with the exception of having received a large inheritance), a lot of money is something that cannot be nailed down to even a group of individuals in the same situation. If you ask a group of 20 somethings what a lot of money is and what is a lot of money to a group of 30 somethings (even with them being in the same “group” of friends), I can guarantee that their response will be varied. From a personal level, I would say that as time has passed, my figure for “a lot of money” has definitely increased. That said, I recently resigned from a well paying position to take a job that pays less but gives me more time with my family. That to me is significantly mroe important than having “a lot of money”!

By: LC

LC — Mon, 19 Nov 2007 14:50:12 +0000

In terms of salary, I think somewhere around $80,000 is a lot of money.

In terms of everyday purchases, anything over $50 is a lot of money (i.e. a single item that costs that much, a grocery trip that exceeds that amount)

In terms of net worth, I think that $500,000 is a lot of money. That approaches the point of financial independence.

By: E.D.

E.D. — Wed, 05 Sep 2007 20:09:57 +0000

I think ALOM is whatever it would take to

1. pay all bills, including credit card bills OTIF
2. save 10-15% for retirement
3. have mortgage as your only debt
4. be able to pay for large, planned expenses (used car, renovations) in cash

Right now, my husband and I have #1 and #2 taken care of. We’re almost there on #3, but #4 will take some doing since saving up for a decent used car takes time.

Once he gets a job and leaves his postdoc, we should be able to do all four easily, at least until we have kids.

By: Will

Will — Sun, 17 Jun 2007 19:53:23 +0000

I have been told that the smaller the figure you see as a lot of money, the less money you will actually make. I’m not sure if this is true, but the idea is that someone like me that lives fairly simply and does not have a passion to make as much as possible, will always be less financially secure than someone who is more motivated by the dollars.

On the other hand, we have all heard what people facing the final chapter of their lives say about what was important in the end…..

By: Rob in Madrid

Rob in Madrid — Sat, 16 Jun 2007 10:33:01 +0000

I still remember (some 20 years ago now) when I went from part time non union to full time union gettting and getting my first paycheque. It was almost double the previouis weeks pay. it was very unexpected because I hadn’t expected to join the unionized payroll for a week or two. Of course it didn’t take long before the new pay cheque wasn’t enough.

Earning big bucks is meanless if you don’t manage your money well.

By: MC

MC — Sat, 16 Jun 2007 04:17:37 +0000

I agree with many of the posters who say it is relative. For example, a lot of people mentioned that ALOM is 50% or 100% more than what they are making now. The problem is that when you are making that much, it doesn’t seem like ALOM anymore.

I have been extremely fortunate, getting more than 100% in raises in the last 4 years since graduating form college without increasing my costs much. It was great, I am maxing out my 401k, bought a condo, but then….

I got a girlfriend, and it is no longer ALOM :).

By: beloml

beloml — Fri, 15 Jun 2007 21:24:52 +0000

The richest I’ve ever felt was in 1989, five years out of college, when a job change meant my salary went from $16K to $24K.

By: Dan

Dan — Fri, 15 Jun 2007 20:00:13 +0000

Also, for those who mention cost of living…bear in mind that standard of living is not only a related factor but is always a choice. I can’t tell you how many people I know who complain about how they’re struggling to pay the bills each month despite how much they’re making, yet they have two expensive leased cars in the garage of their overly large house in one of the most expensive neighborhoods in town, filled with all the latest electronic gadgets.

By: Dan

Dan — Fri, 15 Jun 2007 19:55:52 +0000

It all depends on whether you define it according to gross income or net income. To me, the schoolteacher who makes $40K a year yet manages to live frugally and invest $5K a year is a lot wealthier than the lawyer who makes $200K yet manages to increase his credit card debt by $5K each year.

By: Ted Valentine

Ted Valentine — Fri, 15 Jun 2007 18:32:39 +0000

Sounds to me like Mark also knows a lot of Yertle the Turtles.

By: Mikko

Mikko — Fri, 15 Jun 2007 14:14:39 +0000

I have to agree with people who mention the ‘cost/quality of living’ factor in this. For example, I live in a very expensive city, Washington DC. Average rent is easily

By: A Tentative Personal Finance Blog

A Tentative Personal Finance Blog — Fri, 15 Jun 2007 13:11:09 +0000

My wife and I are in our mid 20s and we’re surrounded by people of mostly the same age. Most everyone makes around 60K a year. My wife and I make 120K a year. Our salaries are way above the norm of our group. Whoopppie!

But, if you look at our networth, it’s -145K. Waaaaay below the norm of our friends who have maybe 10K in debt. Our low net is due to school loans. I’m estimating it’ll be at 0 within 2 to 3 years.

My point is that it’s all relative like many of the posters said.

By: Tyler

Tyler — Fri, 15 Jun 2007 12:51:39 +0000

If you chase money, you’ll end up drowning. The pursuit of money is a path that will doom us all if we are not careful with it.

By: Matt

Matt — Fri, 15 Jun 2007 12:07:26 +0000

I’ve always felt like I make a lot of money because my salary has always been high enough that I couldn’t spend all of it even if I tried. Even when I was making $33,000 at my first job out of college, I was living on far less than that so it seemed like a fortune. My salary has gone up significantly since then and it has always exceeded my expenses, so I feel like I make a lot of money even though many of the people I work with make quite a bit more than I do.

Because I’ve always been able to save, my net worth is high for someone my age. However, I don’t feel like it’s high enough. I won’t think my net worth is high enough until I can live off of it. So, even though my net worth is high for my age and income and is probably higher than many people who make more than I do, I’m not satisfied yet.

By: Lisa

Lisa — Fri, 15 Jun 2007 10:56:56 +0000

Reading Your Money or Your Life was life defining for me. Living with The Tightwad Gazette and the bible also are what keep me grounded in a society full of want (and percieved scarcity) and peer pressure to acquire those wants. Whats enough? When do you have it? Thinking your next degree or doodad is going to make you happy long term may end up disappointing you. ALOM is all in your expectations. I feel like I have plenty of money but probably not alot for my area.

By: plonkee

plonkee — Fri, 15 Jun 2007 09:00:58 +0000

I consider a lot of money to be more than about twice what I make now.
On the other hand, if I got a new job, I would be earning a lot more money if I was being paid greater than 20% more than what I earn now.

By: miguel

miguel — Fri, 15 Jun 2007 05:11:15 +0000

I see ALOM as a moving window. It’s strictly a matter of perception. For example, I one year I managed to increase my income by about $30K. I was really happy. We were putting lots of money away for savings, and retirement. Now, I am looking at how to increase my yearly income again, including side projects, by another $20K. I know I should be happy with what I make, but I’m always hungry.

By: Mike

Mike — Fri, 15 Jun 2007 03:01:37 +0000

perspective is the key word here,

With most people, No mater what your net worth or station in life, you can figure there are at least two people in the world, who if they could change places with you, the one would think ‘they had died and gone to heaven, life is so good now!’ , the other would be considering ‘suicide’ because their station in life had sunk so low………….:)