What salary makes one wealthy in Iowa?

[ericlambi]

Somewhat of a tangent, but I moved to Boston 3 years ago and have come to realize how punitive tax policy is towards high cost of living cities. $100k in Boston gets you the same quality of living as maybe $40k in Des Moines (my estimate), but the $100k earner in Boston pays more than 2.5x the tax of the $40k earner in Des Moines. Besides the cost of housing, I think this is the second most important factor in cost of living analysis, but I don't think most calculators figure it in.

[Tre4ISU]

yaman3, If you can set yourself up to own 500 acres free and clear by the time you are 45 or 50, you will be very happy. I would consider this a very solid position, keep your eye on the prize.

Yes, I realize this but in all likelihood this will become my one and only career within the next 10-15 years. I would like that to be profitable. It also isn't likely that I will own 500 acres in that time span therefor I will not have said land for a large portion of my career. Sure, you can live off that 500 acres if you own it free and clear or you gave an amount that still leaves it profitable. My family, fortunately got into the position they are in right now because of the fact that my grandfather had been a very smart and efficient man going into the 80s and my father had started off well by working his *** off when he was younger. My grandpa had the ability to buy land well below it's value because of the farm crisis and the fact that when everyone was going nuts spending he was not.

I think the farm crisis of the 80s relates very well to what we have seen in the general economy over the past few years. When things were great people went wild and left themselves very vulnerable to tough times. You always have to keep in mind that the economy is usually cyclical. There will be good times and bad times. The key is knowing how to manage for both when you are on the other end of the cycle.

[cloneluke80]

My only comment is live cheap and you can be rich.

examples:
5 year old cell phone and 5 year old basic contract $60/month for 2 phones
no cable or satellite
drive old cars till they die
stop going out to eat
pay down all debt

I figure the average family pays upwards of $1000-$2000 in interest servicing debt per month.

Minimize or eliminate items above will could save a family $2500 per month. That's cash money!

Like my dad always says, "figure out how to get people to write checks to you, not the other way around"

[Cato2handjam]

This turned out to be a very good thread. Most posters on here get it, I've noticed that people that are interested and comment in Thread topics like Investing, Household Income, Wealth, etc. are already keenly aware of what it takes to make ends meet and prepare financially.

As most have pointed out, Salary does not equal Wealth. Income generation is an important factor in accumulating wealth. But, its hard to save if too little is coming in.

1. Make more than you spend.
2. Eliminate all debt. That includes tax deductible debt.
3. Save 15% of your income for retirement.
4. Enjoy being healthy.


Never ever have a car loan, buy used and move up over time. Paying +5% annually on $25K on a depreciating asset drives me crazy. Car dealerships make far more on financing than they do on the actual sale of the car.

[Tre4ISU]

This turned out to be a very good thread. Most posters on here get it, I've noticed that people that are interested and comment in Thread topics like Investing, Household Income, Wealth, etc. are already keenly aware of what it takes to make ends meet and prepare financially.

As most have pointed out, Salary does not equal Wealth. Income generation is an important factor in accumulating wealth. But, its hard to save if too little is coming in.

1. Make more than you spend.
2. Eliminate all debt. That includes tax deductible debt.
3. Save 15% of your income for retirement.
4. Enjoy being healthy.


Never ever have a car loan, buy used and move up over time. Paying +5% annually on $25K on a depreciating asset drives me crazy. Car dealerships make far more on financing than they do on the actual sale of the car.

I somewhat disagree with this. If you can buy that asset correctly, you will be just fine with a car loan. The problem is that far too many people don't push hard enough when buying these new cars. The last one I bought, I paid 71% of sticker. I can live with that. When penciled out, I cannot see myself ever getting upside down on that vehicle.

[MNCYWX]

Even though money is a essential, and more makes it easier to live (if you are smart with your money). The thing that I think makes me wealthy is my family. Nothing makes me happier.

[CyPride]

While I agree that Rich Dad, Poor Dad does a good job of explaining the importance of passive income, I would also say it is one of the most unethical things I've ever read. Just my $0.02.

What is unethical about RDPD??

[dmclone]

I somewhat disagree with this. If you can buy that asset correctly, you will be just fine with a car loan. The problem is that far too many people don't push hard enough when buying these new cars. The last one I bought, I paid 71% of sticker. I can live with that. When penciled out, I cannot see myself ever getting upside down on that vehicle.

Even though I've bought a ton of new cars in my life, I have to disagree. It sounds like you got a heck of a deal on a car but I'd be willing to bet that any car that can be discounted by 30% off sticker is going to have lousy resale value. I could be wrong but you don't see too many $20K cars being sold for $14K. The other question I have is could you sell it today for what you bought it for when new? Just because you're not upside down doesn't mean that it's not a bad investment. If I paid cash for a $60K corvette I would never be upside down but you can bet that I would lose $15K as soon as I drove off the lot. Once again, nothing wrong with it but I've yet to see a new car that's a good investment.

[Tre4ISU]

Even though I've bought a ton of new cars in my life, I have to disagree. It sounds like you got a heck of a deal on a car but I'd be willing to bet that any car that can be discounted by 30% off sticker is going to have lousy resale value. I could be wrong but you don't see too many $20K cars being sold for $14K. The other question I have is could you sell it today for what you bought it for when new? Just because you're not upside down doesn't mean that it's not a bad investment. If I paid cash for a $60K corvette I would never be upside down but you can bet that I would lose $15K as soon as I drove off the lot. Once again, nothing wrong with it but I've yet to see a new car that's a good investment.

I bought my pickup six months ago and I would bet I could very close to what I paid. I have heard of two people who bought a year older used pickup like mine for about a thousand dollars less. I have no idea how I got the deal I did, honestly, I am sure I won't ever get that kind of deal again. I don't buy the whole blue book thing. What you have is worth what someone will give you. That's it. I get sick of trying to buy something and someone telling me what it books for. What some book says is really irrelevant.

Typically, any vehicle that is more than something that will only get you to and from where you need to go is a bad investment. Vehicles are always that way.

I was hell bent the next vehicle I owned was going to be brand new and exactly what I wanted. It wasn't that I thought it was a better deal.

Here's something else I think about this argument. I will spend money now. I am young, I want to do things and I want to be able to do it now. I don't have a huge interest in traveling the world or doing a lot of the same things normal retired people do when I get older. In fact, I will likely never really retire. I want to be able to have my motorcycle, nice snowmobile and go on my snowmobile trips while I can. I actually see myself really living cheaper later in life. I have worked hard since I was in high school to get where I am now and while I have the opportunities I will take them rather than have a **** ton of money when I am old and don't have the ability. In the end, it depends on what you want to do and when you want to do it. After all, money means nothing if you don't use it to enjoy it. How you enjoy it is your prerogative.

[capitalcityguy]

The premise of the thread is set up incorrectly by asking what salary makes one wealthy. Salary is only a small part of what it means to be wealthy (and if you're truly wealthy....are you really needing to earn a salary?)

[4429 mcc]

My only comment is live cheap and you can be rich.

examples:
5 year old cell phone and 5 year old basic contract $60/month for 2 phones
no cable or satellite
drive old cars till they die
stop going out to eat
pay down all debt

I figure the average family pays upwards of $1000-$2000 in interest servicing debt per month.

Minimize or eliminate items above will could save a family $2500 per month. That's cash money!

Like my dad always says, "figure out how to get people to write checks to you, not the other way around"

Live boring life but you're debt free. Get hit by bus tomorrow say to self, "Self why didnt we do more fun things in life?" Costs too much

[Mr Janny]

Live boring life but you're debt free. Get hit by bus tomorrow say to self, "Self why didnt we do more fun things in life?" Costs too much

This is a good point.

Frugality for frugality's sake is just as pointless as extravagance for extravagance's sake.

[Royalclone]

When you can pay cash for everything (except your house) and still have plenty of money in the bank, I consider you wealthy. How much money you make doesn't mean much in my book with regards to wealth.

I do think having a happy, healthy family is better than any kind of wealth one could have no matter the number.

Agree, it isn't salary, its net worth that makes one fiscally wealthy. Salary is just a means to acquire the money to build your wealth. If you squander it trying to look weathy to others, it just becomes fool's gold.

[RandomFan]

What is unethical about RDPD??

Just the parts where he advocates insider trading and fraud. Otherwise it's all good.

[jamesfnb]

Find a happy medium. Save/invest some, pay down debt with some, and spend some doing what you love. Focus on distributing evenly in those 3 categories and don't get too crazy focusing on any 1 of the 3 and you'll be fine.