Why do people who make $100,000 a year feel poor

Why do people who make $100,000 a year feel poor? Below is some of the most expensive cities in the world for rent:

It is a world anyway from some towns and cities, where you can rent a decent place for a few hundred. The point is that gross income isn’t important. What is important is how much you can save after tax and cost of living. If you earn $100,000 in the UAE, or many other tax free places, you are left with $100,000 net. In some low tax places in Eastern Europe and beyond, you are left with $80,000-$90,000 net. In some places, you are left with $60,000 net after taxes and not much else after. If you are earning $100,000 in some parts of the US, or somewhere like London, at least half (or more) will go on spending, and 30% or more on taxes. $65,000 net of taxes isn’t a lot for a family of four to live on in Central London. It is a lot of money if you are living in some parts of the world. I was speaking about this to an expat friend of mine. He made 350k a year in Singapore but saved and invested about 35k due to all the distractions and costs. He saved 70k a year living off 130k in Vietnam a few years ago, having moved from Singapore. Yet few people are as concerned by the purchasing power parity of their money, as the prestige of earning more. This is one reason why in many high-tax countries, business owners don’t make much money on paper. In some countries the name of the game is to reduce your taxable income, and use more for expenses and business expansion. Another reason is perspective. People tend to judge themselves by the company they keep. If you are surrounding yourself with people who are earning much more than you, you can feel poor even if you are earning $1M. Likewise, many people in some parts of the world feel “rich” or at least well off earning 3k a month. I remember when I lived in China many years ago. In a third tier city, one of my Chinese acquittances thought 10,000RMB a month (about $1.700 a month) was very well-off. 30,000RMB (about $5,000 a month) was really considered to be quite excellent. Yet if the same people went to first tier cities or Hong Kong, they often felt poor, because of the cost of living but also the law of comparison. Now, that was 10 years ago, and things have changed, but the point remains the same. Finally, you have spending habits. Many studies have shown that people earning between $35,000 and $100,000, are much more likely to spend on luxury items than people earning much more than that. This is especially the case with consumer goods which are dead money, but it is also the case with purchases of watches and other items. People earning between $6,000-$9,000 a month are more likely to own them than people earning more. The keeping up with the Jones’ mentality also can affect the issue you allude too.

Why do people who make $100,000 a year feel poor