With the exception of the most obvious extremes, the perceptions of being rich or poor can sometimes be subjective. This has a lot to do with the neighbors. An upper middle class family may view themselves as average, while someone making half of their income may view themselves as well off. It all depends.
In this country, we very often feel that we are more poor than rich compared to our neighbors, which is odd, considering that most of the rest of the world would probably consider all of us on the rich side.
In contrast, I was talking with someone whose neighbor has put her house on the market for sale because of a divorce situation. The house had not been upgraded since it was built, and there was some concern that the home for sale might bring down the property values if a poor family moved in. I asked how much the owner was asking for the home. The reply was $425,000. I personally don’t know many poor people who could afford that price. In fact, it would be undoubtedly out of my own price range, and I would hardly consider us poor. So, you can see how perceptions change. Perhaps in that neighborhood homes normally go for much more money.
What affects this perception of us, or our neighbors, being rich or poor? It is important to understand, because we often compare ourselves to our neighbors. Sometimes it is all of the entertainment, gadgets, after school activities, and other things that everyone seems to need. Things that were once consider luxuries are now considered the norm. But are those neighbors with the new finished basement, the new cars, the media room and the new pool actually able to afford all of it, or will their house soon be in foreclosure? Are they rich, average, or really poor?
Envy or even just keeping up with what appears to be the norm can cloud our perceptions. We consider ourselves poor if we can’t afford the premium cable channels, the latest smart phone or the cost of sending our kids to Little League. We forget about the fact that we have free schooling available (yes, I know, taxes), food on the table and running water. We forget that we have television and the ability to easily wash our clothes or drive to a grocery store. These thing mays seem normal to us, but are dreams in the clouds to others.
When $425,00 equals ghetto, I think there is some re-evaluation needed on whether our neighbors are rich or poor.