this post was submitted on 30 Aug 2026
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Work Reform

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[–] chisel@piefed.social 109 points 1 day ago (4 children)

Millionaires are working class. $1B - $1M is ~$1B.

[–] BigBenis@lemmy.world 1 points 18 hours ago

$1M ≈ 2 average single family homes

$1B ≈ 2000 average single family homes

[–] jaybone@lemmy.zip 66 points 1 day ago (3 children)

Can’t even buy a house for $1m where I live. So not rich.

[–] mcv@lemmy.zip 56 points 1 day ago (4 children)

Yeah, millionaire status is rapidly becoming meaningless. Lots of people who have a mortgage will probably be millionaires when they pay it off, but they can't buy anything for it because they still need a roof over their head.

I think 10 million now is the million of the past. Call it inflation. It's entirely driven by ridiculous housing prices (which are mysteriously not counted in inflation figures).

[–] anon_8675309@lemmy.world 13 points 1 day ago (1 children)

Put 5 randos in a room and one is a millionaire on paper.

It means nothing to be a millionaire if you include house car etc.

You can’t “spend” those items.

[–] IronBird@lemmy.world 3 points 1 day ago

can with a heloc, but that's just me being pedantic

[–] Rhaedas@fedia.io 7 points 1 day ago (1 children)

I am old enough to remember when a simple savings account at the bank was 5% interest, no minimum balance. Now grabbing a high yield account of 3.5% is doing well for the average person, and requires a high balance to qualify for that "incredible" rate.

[–] anon_8675309@lemmy.world 5 points 1 day ago (1 children)

Yes but a mortgage was 11%.

Now housing was still affordable then, so…

[–] Rhaedas@fedia.io 5 points 1 day ago (1 children)

Housing was affordable and wages hadn't fully flatlined, so a single income family could still possibly pay that mortgage, even pay extra against the rate, and support a family. Definitely a lot more than one single rate number, lots of things are broken.

[–] mcv@lemmy.zip 8 points 1 day ago

I would absolutely take the interest rates of the 1980s with the housing prices of the 1980s.

[–] Flower@sh.itjust.works 2 points 1 day ago

10 million

Decamillionair

[–] BarneyPiccolo@lemmy.today -2 points 1 day ago (1 children)

Owning a house doesn't protect you at all. Every decade or so there's a real estate bubble that pops, you lose all your equity, and you have to start over.

Also try not paying your taxes, or your HOA, and you'll quickly find out that you don't really own your home, you're still paying someone to keep it, or the court will forcibly remove you. And if a squatter moves in, they can stay, and you're paying for the right for them to stay there.

[–] arrow74@lemmy.zip 12 points 1 day ago* (last edited 1 day ago) (1 children)

That's if you consider a house a store of wealth.

I consider it a place to live that compared to everything gets cheaper every year. By the time my mortgage is paid off all I have to pay is maintenance and property taxes. Which are a fraction of rent. If we assume things stay proportional, rent for a similar property per month is around $1,200. My property taxes are $2,800. Double that for a yearly average maintenance cost. That's 466 a month. You can't even get a used sedan for that much a month let alone a place to live

Also in 0 states can a squatter move in to an owner occupied home and claim squatters rights. Only an issue if the property is vacant

[–] scytale@piefed.zip 7 points 1 day ago (2 children)

I was shocked to learn that the average homeowner in the US lives in their house for only 7 years. I think it’s due to the nature of how huge the country is and that something as simple as a job change means you have to move across the country and sell your house. There’s also the culture of always upgrading.

I grew up in a place where you usually buy once and live there forever, so equity isn’t really too important. But then again it’s a more centralized way of living where you can stay in place for most of your life.

[–] ellen.kimble@piefed.social 2 points 1 day ago

I bought land with this mentality. Permanently reducing my costs and investing in off-grid infrastructure to make retirement cheaper.

I think it’s also the culture of seeing real estate as an investment. People buy houses planning on selling after they’ve lived there. I personally don’t think I can tolerate the risk of using equity as leverage for paid off land, because then there’s a risk the bank will take it. I’d rather leverage things I can live without if the bank takes it for whatever reason.

[–] WoodScientist@lemmy.world 3 points 1 day ago

I was shocked to learn that the average homeowner in the US lives in their house for only 7 years.

I wonder how much of this is a question of what average is being used. It's the old median vs mean problem.

Elon Musk and a hundred homeless people are in a room. By the mean, the average person in that room is a billionaire. By the median, the average person is homeless.

I'm really curious whether that 7 year average figure is based on the median or mean. Because I could see it being really skewed by young people in their twenties that move around a lot.

[–] sparky@lemmy.federate.cc 1 points 1 day ago

As with all things finance, depends on where. $1m in San Francisco means you can’t afford a home. $1m in Sicily is a great life.

[–] WoodScientist@lemmy.world 42 points 1 day ago* (last edited 1 day ago) (1 children)

Seriously. My partner and I are millionaires. We're almost 40 and have a net worth just shy of $2M. We've a couple of DINKS. We're both engineers, are pretty good with numbers, and understand compound interest. We got on the property ladder pretty early. I bought my first townhouse in 2012 pretty much right at the bottom of the housing market. We've moved twice since then and have benefited from the full rise in house prices.

Our net worth is a little under $2M. About $10k of that is checking and savings. Another $80k in a taxable brokerage account as an emergency fund. $450k in home equity. The rest is in retirement accounts such as 401ks and IRAs.

We are working class. The closest either of us have ever come to hiring someone is when we've hired a plumber or electrician to fix something at our home. I've technically owned a business, but just for my own freelance tutoring work. And the closest either of us have ever come to being a landlord was when I had a couple of roommates at that first townhouse I bought.

We're doing very well; we have no complaints. And while we've achieved some modest amount of wealth, it's not ultimately about living large or in luxury. We live well below our means. We recently bought our first new car in many years, a new Toyota Corolla. It replaced a 15 year old Corolla that my partner bought new. We buy affordable reliable vehicles and drive them til the wheels fall off. I still get most of my clothes at thrift stores. We have a house worth over $600k, but our mortgage payment is just $2k, and that's on a 15-year note. A few years ago when I was in grad school, I was literally a millionaire who road the bus.

But again, we're not trying to get rich for the sake of getting rich. We don't want to own some huge company and lord over a room full of workers. We're not trying to hoard the largest possible amount of money we can. We don't view wealth as a lifetime high score. It's simply a means to achieve stability and safety. We're on the path to early retirement. We hope to retire by the time we're 50. We need to save up a couple of million not because we want to live in luxury, but simply because it's the only way to have a decent stable and safe retirement in this capitalist hellscape we live in. In a world with universal healthcare and a universal basic income, we would have no need for millions in retirement savings. If my partner and I each brought in say, $20k a year from UBI? If we had a paid off house and also didn't have to worry about healthcare? We could live quite well off just that $40k per year.

I'm a millionaire and I support much higher taxes on millionaires. I do this because ultimately the point for us for having a couple of million is not to have a couple of million. The point is to have safety and stability in our lives. And the more secure the social safety net, the less the need to cover those needs privately.

[–] jtrek@startrek.website 33 points 1 day ago (5 children)

With 3 million dollars in liquid assets (ie: not a house), you can bring in about $120k from the safest of investments. Just a high yield savings account. Fully insured.

With an index fund, you can bring in $300k.

That's enough to live on, given how many people live on that much or less from their job.

So some millionaires may work, but they're not really the same.

[–] Nemo@slrpnk.net 24 points 1 day ago (1 children)

But most "millionaires" are paper millionaires — they have a house and a car and a retirement fund and an emergency fund. Upper-middle-class, for sure, but they're still working or retired from a lifetime of working.

[–] jtrek@startrek.website 10 points 1 day ago

That's why I specified liquid, not-a-house, money.

[–] raspberriesareyummy@lemmy.world 3 points 1 day ago (1 children)

Investment returns are by definition the fruits of other people's labor.

[–] WoodScientist@lemmy.world 4 points 1 day ago (1 children)

And yet ultimately that's what every retirement and disability system of any kind has to be based on. Whether you're talking traditional methods of just letting your old or sick relatives live with you, state-run pension systems or disability, or private retirement accounts and disability insurance, it's all ultimately the same deal. The systems vary extremely in their effectiveness and equity. But ultimately there's no getting around the unavoidable truth. If you want to live in a world where the elderly and disabled are simply not abandoned to die, some of the labor of the young and healthy will be siphoned off to support the old and infirm.

If you want to live in a world where you yourself will not be cast out onto the street to die when you are too old to work, then for some of your later years you will depend on the labor of others, just as you did when you were a child.

And yet ultimately that’s what every retirement and disability system of any kind has to be based on.

There's a fundamental distinction to be made to the below point of yours:

If you want to live in a world where you yourself will not be cast out onto the street to die when you are too old to work, then for some of your later years you will depend on the labor of others, just as you did when you were a child.

I strongly disagree with your first point, but maybe you misunderstood me. Investment returns are basically letting other people work for your profits, with nothing given in return. I.e. a form of wage theft (or other shenanigans like messing up the environment for profits or exploiting resources or funding a totalitarian regime).

Your second point - while correct - has nothing to do with my criticism of (stock / fund) investment returns: That could be (and was for a few decades, at least in Germany) a generational contract, where society manages to pay out pensions from which elderly / retired people can afford living & care from the GDP. Those pay-outs have been paid in advance by those needing them because they funded the old and retired people at the time they were still in work.

For that system, you do not need any kind of finance products. Of course that doesn't keep our corrupt governments from spending our retirement money elsewhere and investing in shady funds for private profits and shitty retirement payments. So in today's world, in practice, yes, people rely on finance product returns for their retirement savings and most of us have no choice in that. But it wasn't always like that, and it should not be, because it's a pyramid scheme.

[–] chisel@piefed.social 3 points 1 day ago

That's just retirement

[–] thermal_shock@lemmy.world 3 points 1 day ago

Yup. 3 million and my husband would not work at all. hed handle whatever he wanted and I'd work from home as I do now, maybe a less stressful job. A lot would be donated and given away to those in need.

For the vast majority of millionaires, their wealth is mostly home equity, not liquid funds.