Am I Rich?

There has been a lot of chatter this week in the blawgosphere about what makes one rich. Of course, there's no easy answer. It all depends on experience, perspective, where you've been, where you want to go and where you live.

The short answer to "am I rich?" is no. But that's based on my current perspective. When I was a kid, I would have thought that someone in my position was "rich." Of course, when I was a kid, anyone who lived in a brick house was rich. I lived in an 1000 sq. ft. asbestos-sided house with a swamp cooler (no central air).

In 1993--the year I graduated from high school--my mom earned $17,000 per year. According to this calculator, that's about $26,000 in today's dollars.

We never had any government assistance, but there were plenty of times we were "charging" our school lunches until the next payday, or digging in the couch cushions to find enough change for milk (or mixing up powdered milk-ewwwww!), or eating pancakes for dinner (with powdered sugar because we didn't have syrup) because that's all we had in the house.

So compared to when I was a kid, yeah, we're pretty darn rich. And there are plenty of people in this country who still live the lifestyle I had as a kid, and I guarantee that they would view us as rich.

And compared to them, we are rich. Our annual income is many multiples of what my mom was making back then. We've never had a utility turned off or not had enough food in the house. My kids don't even know what powdered milk is. They've never been told that they can't participate in a school activity because we can't afford it.

And more than that, they have all the right "stuff." The clothes the other kids are wearing, the gadgets the other kids have. I'll admit that PS got a cell phone when she turned 10 not because she needed one, but because everyone else had one. I remember being the only kid who didn't have the new "in" thing,or the right shoes, or the Guess jeans. I don't want my kids to be those kids--but I also want them to appreciate what they have. (PS bought her iPod touch with her own money--I won't spend $200 on a gadget for a kid. And she won't be getting a iPhone until she has a job and can pay for the data plan, even though many of her classmates have them.)

But in the great grand scheme, no we aren't rich. I don't work in Big Law and don't earn the corresponding salary--but I'm also well above government and public service salaries. DH also earns a professional salary. But of course, we have the massive debt associated with putting ourselves through school. Our student loan payments exceed our mortgage. Right now we are comfortable--without the student loan debt we would be very comfortable.

Our mortgage payment is small fraction of our monthly income. Our house is a 2800 sq. ft. two-story brick home. I know that is massive in some parts of the country, but it is pretty average here. We live in an average middle-class neighborhood.

Our splurges are two-new cars. Mine was a necessity because the tranny went out on my 9-year old Suburban. I drive a Nissan Armada with plenty of bells and whistles and I LOVE it. I have no desire to ever have a luxury vehicle. DH drives a Honda CRV which neither of us love, but it gets great gas mileage and he has a long commute.

Our other splurge is a nanny/housekeeper. The nanny because I want my kids to be in their own home after school, and so that they have someone to drive them to ther after-school activities. (I'm not sure this is really a splurge--with 3 kids, the nanny/housekeeper costs less than day care.) The housekeeper because I hate cleaning house, and I'd rather spend my weekends playing with my kids than scrubbing toilets.

We do not own a flat screen TV, a second house, or a boat. (All of which we would like one day.)

I never had vacations as a kid, so we try to take some kind of vacation every year, but usually it involves renting a cabin somewhere. Neither DH nor I have ever left the country. Our Disney trip last year was a big splurge. Our upcoming cruise is a much-smaller splurge.

We've started saving for retirement and our kids' college, but we have a long way to go. I don't want my kids to start out their lives in debt like we have.

So I guess, to consider myself rich at this point, we would have to pay off our student loan debt. Have the kids' college funds funded. Be able to take a big vacation every year without considering it a splurge. Get the flat-screen TV, the second home and the boat.

And being able to walk into Barnes and Noble and buy anything that I want without even thinking about it. That, to me, is the greatest luxury.