When am I rich? From this salary you belong to the richest 1 percent

When am I rich? Many people in Germany ask themselves these questions. This is also shown by the search queries on Google. The Institute of German Economics has published corresponding study results. The results surprise.

Wealth: Many people associate this term with swanky houses, expensive cars and a lavish lifestyle. But reality speaks a different language.

Because in most cases we underestimate our own role in society. So when are you rich? We often answer this question incorrectly, since rich people have a frowned upon reputation in society. As a result, many prefer to consider themselves part of the broad or upper-middle class.

7,190 euros net: From this salary you belong to the richest one percent in Germany

The German Economic Institute (IW) in Cologne regularly examines the financial situation of Germans. The basis for this is the so-called Socio-Economic Panel (SOEP).

This is a representative long-term survey of 16,000 households. The questions include: How often have you changed your job in the last year? Or: How much money do you earn?

Since the survey meets the strictest scientific standards, the evaluation takes some time. Specifically, the latest figures come from 2018, which IW Cologne only published in 2021.

To be among the richest one percent in Germany, a single person needs a monthly net income of around 7,190 euros. For couples without children living in the same household, the value is enclosed 10,790 euros.

DINK(Y) and HIKO: These two groups are the richest in percentage terms

When analyzing the salary structure in Germany, two groups stand out in the richest ten, five and one percent, which are disproportionately represented.

These are the so-called DINK(Y)s – Double Income, No Kids (Yet) – and the so-called HIKOs – High Income, Kids Out. Both social groups are particularly common among the top earners and salary champions in Germany.

When am I rich? There’s more than just salary

Basically, when assessing whether a person or a household is considered rich, it is important that not only the salary counts in this calculation. There are other incomes as well.

This includes, for example, income from share transactions – i.e. dividend payments, among other things – or rental income. By the way: Anyone who lives in a paid-off house or apartment must also add the fictitious net rent to their own salary.

In an analysis of an earlier salary analysis, the Mirror the investigations of several researchers from the University of Hanover. As early as 2016, they found that “the respondents cannot even come close to determining their position on the income scale”.

This also shows that we cannot trust our self-assessment, especially when it comes to money and wealth. Many always want to portray themselves as poorer than they really are.

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