In recent times, $250,000 and above income households in US have been marked as ‘rich’ families by economists, financial experts and even politicians who make decisions about taxes and other benefits. So financial analysts of The Washington Post actually sat down and worked out what it means to be $250,000 income household in US in present times (see pic). According to them, even with this kind of income rich families can only maintain modest above average comfortable lifestyle. They cannot afford to splurge without cutting down their other important expenses like retirement and children’s education plans.
It is indeed shocking that what we perceive and project as ‘rich’ family are hardly rich anymore thanks to the high income tax, house tax, health care insurance, retirement plans, educational loans, mortgages, utility bills and increasing daily existential expenses. So a hard working couple earning $250,000 will still long for more earnings to be able to afford family holidays and luxuries.
It is an important and interesting study which actually breaks down the earnings of the so called ‘rich’ household and proves that thanks to increasing taxes and modern life style demands they aren’t rich enough with loads of money to spare to splurge. Maybe one must re-define ‘rich’ income household on the basis of luxuries they can afford.