The amount of money I have left over at the end of the month makes a much bigger difference in whether I feel rich than the number on my paycheck. But, we're trained and encouraged by our culture to spend up to and beyond our means no matter what our income. Even the "responsible" rules of thumb like buying a house for 3x annual income or having debt payments of 40% of income encourage us to increase our expenses as our incomes increase.
It's easy to see why somebody making $200,000 wouldn't feel rich if they own a $600,000 house. Their mortgage costs almost $50,000/year! Design your life to maximize the money in your pocket and you'll feel much richer.
It's easy to see why somebody making $200,000 wouldn't feel rich if they own a $600,000 house. Their mortgage costs almost $50,000/year! Design your life to maximize the money in your pocket and you'll feel much richer.