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I think I am partly to blame for this thread getting off off topic with a discussion of rich vs. wealthy.. Back to the original query: Rich vs. Middle class.
Since there are so many regional differences, I think a generic description rather than specific dollar amounts would be in order.
Middle class would be someone who has to work to support their lifestyle and living expenses. HH income would be above the median for the region where they live. Their largest "investment" would be their home which would be mortgaged for a reasonable amount (no more than 25% of their take home pay). They would have car(s), motorcycles, boats, etc (i.e., assets that are depreciating generally) worth no more than 1/2of their annual income. At least 20% of their net income is available for discretionary spending.
Rich,,,probably no debt, or if there is debt they have liquid assets that could retire all debt at any time they choose. Net worth not counting home at least 25-50 times the median HH income for their region. Passive income sufficient to sustain their lifestyle for the forseeable future without working.
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