It makes sense. People that make a lot of money are expected to look like they make a lot of money. That means having the house, clothes, and cars. It's hard for people to believe someone makes over 100k if they drive a Toyota Corolla and shop at Walmart. When someone doesn't look the part, people don't have faith they can do the job.
That's a valid point as the article doesn't say where most of those income earners are getting that money. A small business owner would naturally incur more costs and debt over someone who makes the same amount of money at a corporate entity.
I think a big point is missed here. We're not talking 100K income, we're talking 100K (to <200K) in net worth.
Net Worth = Net Assets - Net Debts = 100K-~199K in the black.
Anyone that's holding 2500 in high interest credit card debt (half of those people polled) or the additional 39% with over 5K that has that level of assets lying around with the current rates is just doing it wrong. Trust me when I say there are plenty of people who are not doing that well financially even within walking distance and this article is not a good one in my opinion as a result. Sloppy title on the article.
Actually from a source I actually read, more than half of all Americans are doing worse than what's listed:
https://www.marketwatch.com/story/whats-your-net-worth-and-how-do-you-compare-to-others-2018-09-24
@GApeachy wrote:
@Brian_Earl_Spilner wrote:It makes sense. People that make a lot of money are expected to look like they make a lot of money. That means having the house, clothes, and cars. It's hard for people to believe someone makes over 100k if they drive a Toyota Corolla and shop at Walmart. When someone doesn't look the part, people don't have faith they can do the job.
Yeah, you're right, sometimes it is all about the presentation. But not all ppl are high-faluter's in that $ bracket. For some, particularly the Construction sector, 100k puts you in a bracket that's sucks the life-blood out of you. Health Ins, $ amt. on revenue means more $ towards workman's comp/liability Ins., audits of all sorts left and right; taxes, etc. There are just a lot of hard hits that you'd not take in the gut with lower reported income....stuck between Scylla and Charybdis. More $ comes more responsibility up to a certain point, it is draining if you're having to rely on yourself for income and not employed making that jack through corp.
So that's where I think it gives pause to lending decisions. I know self employed is viewed differently depending on the line/trade as well. We are all bucketed by profession and that $$$$.
Old Business read was the book "Dress for Success" ...
@Anonymous wrote:
Old Business read was the book "Dress for Success" ...
Lol! I think that book came out right before I graduated hs.