What is “Good Money”?
photo credit: TheTruthAbout…
Have you ever wondered what “good” money is? Is there a such thing as “bad” money? I don’t think so. I hear the term all the time, in various instances. “He must make good money.” I’ve never heard someone say “He must make bad money.” Unless it was someone talking about a poorly made counterfeit bill. 
It makes me wonder exactly what people view as “good” money. I like to think I make a decent salary, but I don’t know if I’d consider it good money. It pays the bills, and I have enough that I can pay down debt and focus on saving money at the same time.
I know that there are wide salary ranges depending on the certain career path and location. For example, a customer service representative in Milwaukee, Wisconsin may make $12 an hour, while a doctor there makes $100 an hour. In California, the customer service representative may make $20 an hour and the doctor makes $200.
I’m a firm believer in it’s not how much you make, it’s what you do with it, so good money to me may not be good money to someone else.
I think a decent salary is around $45,000-50,000 a year, plus benefits. Where I live, the cost of living is decent, so I could make that go pretty far!
What do you consider “good money” when it comes to salary? Where do you live?
Awhile ago I wrote about it’s not how much you make, but how much you save is much more important. As long as in thee and of the day you’re paying down debt and saving for long term goals, your salary and expenses don’t matter so much.
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Mrs Money Reply:
March 24th, 2010 at 5:10 pm
Daniel- I totally agree! Sometimes I dream about making $100,000+ but don’t have any real plans for it except for traveling and paying off debt/saving.
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I agree it’s not about how much you make but what you do with it. We don’t make much but we have low living expenses so I feel like it’s plenty because we can pay for what we need, have paid off our debt and can save money, even though we make less in a month than a lot of people’s mortgages
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Mrs Money Reply:
March 24th, 2010 at 5:11 pm
Emily- I think that’s the best! I would love to cut our expenses and live somewhere with a very low monthly cost. That’s one of my dreams.
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It ultimately comes down to how much you can grow your net worth. If you make $100,000 and your expenses are $99,000, is that better than making $40,000 with expenses of only $30,000? The lower salary actually has $9,000 extra to save in addition to a lower tax rate.
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Mrs Money Reply:
March 24th, 2010 at 5:11 pm
Bible Debt- I agree! I would much take a lower salary and save more, versus earning more and blowing it!
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Excellent point. I personally know so many people who make much more than we do . . . and spend even more than they earn! It’s just a whole different pace of life when you know how to leave beneath your means–whatever they happen to be.
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Mrs Money Reply:
March 24th, 2010 at 5:12 pm
Simple in France- It’s crazy! I get nervous when I can’t add money to savings. I like to plan things! Living below your means is awesome to me.
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BibleDebt, great example with the $100,000 with $99,000 expensis.
I think that all of this is relative. If you grew up in an upper middle class area, then $40,000-$50,000 may be considered “ehhh” money, OK money would be $50,000-$60,000 and good money would be $70,000+.
At the same time, if you grew up in rural Alabama, GOOD money may be $40,000-$50,000. It’s all relative compared to the cost of living.
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Mrs Money Reply:
March 24th, 2010 at 5:17 pm
MFO- I wanted to see what people thought (in dollars) what was good money. I’m glad you shared your thoughts with me!
Did you grow up in rural Alabama?
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MFO Reply:
March 25th, 2010 at 6:37 am
Nope, I just tried to think of an area with a low cost of living.
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Mrs Money Reply:
March 25th, 2010 at 6:08 pm
LOL that makes sense.
I think it all depends on perspective. For example, a seasoned professional making $25 an hour wouldn’t think that my entry-level teller position paying $10 an hour is “good money”. But coming from minimum-wage retail jobs, man, is that a lot of cash!
Also living within your means makes you feel more wealthy. It’s such a refreshing feeling to know I can afford to pay my bills when they come, no problem.
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Mrs Money Reply:
March 24th, 2010 at 5:13 pm
Megan- I totally agree! I think being a teller is an awesome job. There is a lot of room for advancement if you want.
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I agree that “good money” is relative. It can be difficult, however, if you suffer a sudden and/or dramatic decrease in your income. Even if you have ample emergency savings, spending adjustments can be painful when you’ve become accustomed to a certain lifestyle.
The amount of income you earn isn’t as important as how you spend it or how much of it you keep. But you can save for retirement much more quickly with a higher income. In that sense, income really does matter.
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Mrs Money Reply:
March 24th, 2010 at 5:14 pm
2 Cents- I worry about that sometimes, like what if we move and can’t make as much as we do now? What would we do?
I agree!
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I agree, it definately is relative. Relative to those you keep company with and also to what you are used to. For many years we did not make a salary in the “good money” range that you list and it was tough but now that we are, we have kept our frugal ways because I’m afraid of going back to that income. I also know people who make very, very little and think it is good money.
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Mrs Money Reply:
March 24th, 2010 at 5:14 pm
Laura- I think it’s relative too. The better outlook you have, the better off you are!
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Yes, it is relative and what matters is how you use your money. But you’re talking about what “most people” think right? Well, to many people who live in our town, we do not make “good money” because of the house we live in, clothes we wear, cars we drive, and we don’t have a nanny.
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Mrs Money Reply:
March 24th, 2010 at 5:15 pm
Random Thoughts- No nanny makes you not make good money? Wow! I think it’s great you don’t have a nanny! I am so happy you can continue your frugal ways and not be worried about keeping up with the Joneses.
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Good money is anywhere from $80K-$150K a year in San Francisco. Price of living here is horrendous. We get taxed for everything. And bridge tolls are everly increasing.
But good money to one might not be to another. And the importance of how much you save versus how much you make.
http://moneyhoneysf.blogspot.com/
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Mrs Money Reply:
March 26th, 2010 at 6:51 pm
moneyhoneysf- Wow! That is a lot of money! I think you should move to Arkansas. Just kidding!
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