On a previous post I note that it’s easier to spend money on things when you’re making say, 300K per year compared to 100K per year, not that I would know about the 300K from personal experience.
In the comments this got into a discussion of how life would be different at different levels of income. And something I said was that although I have a good idea of how our lives would change were we making 250K/year, I don’t actually have any idea how life would be different between 250K and 300K. Based on our current income, I can’t really fathom how life would change past like 250K.
Of course, in graduate school, I couldn’t fathom a joint income of 100K/year or more. At like 90K, all our money would be accounted for and we’d have no worries. Anything higher than that just didn’t register. But within a few years after getting real jobs (and a house and kids) it became pretty obvious what more we would do if we were making a combined say, 200K/year. These days I can understand 250K/year (even if we’re not making it), but I’m not sure how much more than that we would need to make for our lives to change.
Obviously at some point we’d have enough to buy a house in Paradise and we might move there. (In fact, with 250K/year, we’d be able to buy a house in paradise so long as we either had job security or savings after we sold our current place.) At some point we could have a highly paid personal assistant to just deal with life details. And at some point we’d have so much it would be irresponsible not to set up a charitable foundation. But when does that happen? At what income? At what wealth level?
Completely unfathomable to me. I get upper middle class now. But I don’t get “rich”. (But I’m willing to accept funding to try it out!)
What’s the infimum in the set of money that’s more than you understand? (Or do I mean maximum in the set of money that you do understand? Help me miser-mom! … I think they’re the same.) That is to say, what’s the inflection point in money where you’re like, well, I know how my life would change with $X, but how would $X + Y be different from just X, I have no idea. Or more concretely, what’s the number for you that you would say, well I know how my life would change if I were making $250K, but I don’t have any idea how $300K is different from $250K. Do you have multiple of these inflection points or are you short sighted like I am? Are they based on income or wealth or both?