Levels of wealth

July 12, 2023 9:52 AM

I once read or heard about different levels of wealth defined by the things someone could afford to buy without worrying about the price. I can't remember the levels and would really like to find the list again. Can you help?

I think I read about this in an article referencing a study but that could be totally off. What I do remember is the following:

- I think there were about 7 levels; at least 5
- I think the 3rd level was something like 'being able to order at a restaurant without looking at/worrying about the prices'
- I think the 4th might have been something like 'being able to buy a car without worrying about the price'
- it went up from there - I think the other categories might have been vacations and houses?

I think of this list frequently and would love to see it in its entirety again, but when I google I get tons of wealth-building advice instead of the list. Any ideas?

Thank you!

posted by widdershins to Work & Money (8 answers total)

Is this it?
posted by justkevin at 10:01 AM on July 12, 2023

Thank you, justkevin! It isn't exactly what I remember, but this list from your link:

Level 1. Paycheck-to-paycheck: You are conscious of every dollar you spend. This includes people with crippling debt.
Level 2. Grocery freedom: How much specific grocery items cost don’t impact your finances.
Level 3. Restaurant freedom: You eat what you want at restaurants regardless of the cost.
Level 4. Travel freedom: You travel when you want, how you want, and stay where you want.
Level 5. House freedom: You can afford your dream home.
Level 6. Philanthropic freedom: You can give away money that has a profound impact on others.

... is close enough that it satisfies my itch. Thank you again!!
posted by widdershins at 10:57 AM on July 12, 2023

I remember seeing a similar list (can't find it) that was sorted by what amount of money would drastically change your life. $10? $100? $1,000? $10,000? $100,000? For someone sinking a few dollars deeper in debt every paycheck, $100 might be a game-changer; for someone with no debts, house paid off, plenty of savings built up, $10k might not make a whole lot of difference.
posted by xedrik at 12:20 PM on July 12, 2023

On the very low end, as people moving from college-poor into the working world we measured it by how much money you would ever accidentally leave in your jeans for the laundry. Most of us started out counting quarters. The day you lost track of a $20 bill you were declared rich and moved to a new system of measurement.
posted by Tell Me No Lies at 5:23 PM on July 12, 2023

Jon Ronson's 2012 article Amber Waves of Green covers this subject and might interest you. He interviewed somebody who makes $200 per week about their life and financial affairs - then went on to talk to those who make successive multiples of 5 of that figure: $900, $5,000 (Ronson himself), $25,000, $125,000 and $625,000. Again, it makes clear how strata of wealth utterly change the things people at that level decide is important -for example certain levels of wealth take you to a point where you could just have your own doctor team of doctors on staff. The overall goal changes from survival at the bottom to philanthropy and gaining influence at the top.
posted by rongorongo at 11:07 PM on July 12, 2023

That reddit comment is silly, at least at the low end. Most of the things listed in the $10-30m range are things people who make ~$150-$200k working do. It's not applicable to those living off invested net worth, unless the writer is implying no bump. But that is silly.
posted by The_Vegetables at 7:15 AM on July 13, 2023

Wait, what people who make $150-200k are spending 1% of their annual income on a single night hotel room stay and are not worried about healthcare costs? I agree that the minimum level of wealth to hit those metrics is less than $10MM net worth, but it's way more than $200k annual income unless you're also an heiress.
posted by decathecting at 8:28 AM on July 13, 2023

Level 6. Philanthropic freedom: You can give away money that has a profound impact on others.

That's some dark irony there.
posted by Lesser Shrew at 2:19 PM on July 15, 2023