Posted by Tim Stobbs on September 13, 2013
I’m rich! But no one told me until I read the latest information in the National Household Survey results this week. If I may quote the information release:
According to the 2011 NHS, 10% of Canadians had total income of more than $80,400 in 2010 — almost triple the national median income of $27,800. To be in the top 5%, Canadians needed to have a total income of $102,300 and to be in the top 1% required $191,100, nearly seven times the national median income.
Since my current income (including employment, the small business and investments) is right around the $102,300 threshold I apparently make more than 95% of the population in Canada (give or take a a percent or two). So that makes me rich right?
While as I look around my house and talked with my wife, we both had to agree if what we are living is rich, then I want a refund. I live in a middle class house, in a mixed income neighborhood and we have a few toys, but I don’t own or do much which I would consider being a luxury lifestyle.
Being rich in my mind assumes that you are actually spending all that money in a given year, which granted if I did spend it all would improve our standard of living, but not that much. We currently spend between $35K to $45K per year (the spread has to do with how many extras we do in a given year like our $7.5K month long trip this year to the East Coast this year).
So yes I can afford a second car, second home (or a much bigger primary house), a cleaning staff and the high life….just one problem: I don’t want it.
Instead I want more time to play with my boys, more time to read and write, the freedom to take a random Friday off to just wash the car and goof around. I want to be independently wealthy with a modest lifestyle, screw being rich.
So do you agree that measuring your income is a poor way to determine if you are rich? Or how do you define being rich?