This introduces an interesting time vector.
I don’t consider the “if you lost your job” factor as much. One factor, to me, that can go into being rich is having a large inbound income stream.
If that disappears, you might stop being rich, in my book. You also might not, depending on what you have saved up.
I worry less about the "if you lost your job" factor. Given the industry I work in and current economic conditions, you'd better believe that I've been thinking mentally about the various levers I could pull to survive until getting another job. First things first, a severe cutback on spending, partly on discretionary things, but also on things such as our food budget to economize what we eat. Then for money, 60 day WARN act where I'd still be earning, then severance, then my existing savings, then the ability to sell my paid-for Jeep if it got desparate, and finally dipping into 401K if it got severe. I'd venture I'd easily have a year+. And to be honest, with severance and industry connections, there's a non-zero possibility that I could be employed quickly and the severance would go straight into my bank account. (There's also a non-zero possibility that it would take a while and I'd get a new job at a lower income level than today).
No, the other aspect is "what if I had a stroke (or other medical issue / injury / etc) and couldn't work any longer?" In that case, even assuming that I could earn some level of income from disability insurance, I'd have to factor in a MASSIVE change in standard of living. That's what I mean about income "disappearing." A job loss is temporary. A disability might not be.
I think this hits on two points.
1. A person could argue that the ability to afford a three bedroom home in that part of the world is in itself a sign of being somewhat rich. I had a friend who bought a place at a number that made me nauseous. Part of the reason was that they wanted to live in a specific couple of cities that are extremely in demand. In a sense, they are kind of house poor. In another, their level of wealth gave them access to a certain option that most people don’t have. (The child support and such, certainly a curveball)
2. I think the last part is very interesting, because we imagine being “rich” should feel a certain way. And maybe it doesn’t. maybe it just feels like being able to send your kids to college without borrowing money and also being able to pay for newer cars while maintaining a couple of non-cheap hobbies.
Per the first point, IMHO it's a sign of being upper middle class, which I think is a different question than rich. Upper middle class is a question of income and lifestyle. Rich is the ability to survive if that income isn't there.
Per the second point, I wasn't trying to complain BTW. I recognize how wonderful my life is. Whether we use the term "rich" or not, I consider myself both successful and fortunate to be where I am, and certainly well-off. It was more about you referring to spending money on cool things, and some of the things I have to spend money on not being all that cool... I'm looking forward especially to when the child support falls off--and if the ex can find someone, the alimony as well--because that would be a HUGE increase in discretionary income.
Bear in mind that we do spend money on cool things. My daily driver is paid off, and so is my toy, the Jeep. My wife's daily driver is a luxury CUV, and will be fully paid off in July--and BTW we have no plans to replace any of those cars, so car payments should be $0 for at least the next 4-5 years. We have a standing theater subscription, and the seats don't suck. Our
overnight trip to Vegas to see Adele will cost an amount that I try not to think about lest it make my eyes bleed, but at the same time we're doing it
because we can. I love my life. But I'm a LONG damn way from rich.
