Just wondering... In Sweden if you drive a new Ferrari or Lamborghini or even a new Porsche most people will consider you being rich. Some people even think I'm rich for driving around in my '92 348 and my '90 Porsche 964 cab... I ask because in another thread this guy wrote "...and I'm not rich." and he is driving a new Gallardo. /Peter
Interesting question. I think it is probably relative to where someone is in relationship to where they want to be. For example, is someone with a million dollars in the bank rich? If the same person is debt free, are they rich then? Can a person with the resources above retire in comfort? Again, it depends upon the individual's standards. Seems that the more one acquires, the higher the standard goes. Personally, I wouldn't classify the above example as "rich". Well positioned maybe but not rich. Curious about other's opinions.
It is an interesting question. I was listening to NPR several months ago and they asked three different individuals if they felt they were "rich". (I know, NPR, I was bored) 1. Normal middle class couple ($100k/yr combined salary I believe). They stated they they definitely didn't feel rich. Rich would be someone making $250k+ annually 2. Retired man in Arizona who had a retirement income of about $300k/yr. He stated that he was most assuredly not rich. Comfortable, maybe, but not rich. A rich person according to him would have to make at least 1/2 mil per year to be considered rich. 3. The wife of an investment banker in NYC, her husband has made $1M+ annually for the last several years. She stated that she absolutely does not feel wealthy, and that her family was not "rich". Wealthy people make really big money, like $10M/year according to her. The comment made in the broadcast was that for most people, they do not feel wealthy, but rather the guy next door that makes somewhat more than them is the "rich guy". I'm by no means a psychologist, I'm not sure what that says about our culture or human nature. I would define being rich as having freedom to do what you want, and the means to do that without worrying about the monetary cost. That would be very different levels of income for different people. That you could be able to support your children through college and graduate school would be a given. That you could pay off all of your debts by a trip to the bank or call to the broker would be another. For one guy his dream life may be to have the income to go bear hunting in Idaho or fishing in Canada and not worry about the cost if he does it twice a year. For him the perfect meal could be chicken n' dumplings from Cracker Barrel, and he would like to be able to drive to the restaurant in his new Suburban, and not worry about the cost of any of it. For another it may be making sure he is the first one at the country club with a Pagani Zonda, that his 250 Testa Rossa is always prepped in case he needs a track day to blow off steam, and that he always has the most exclusive table, wine, service, etc every time he sits down at a restaurant, and not worry about the cost of it. For these two individuals the monetary requirements to achieve their dreams are very different, but the feelings of wealth would be the same.
I think it was "rich dad, poor dad" (Though I may be mis-attributing this) that said you should measure wealth by how long you could go without working. So, if you own a couple of businesses that make money whether you are there or not, and you could live indefinitely on that income, then you are most assuredly rich.
http://www.wally.com/Upload/i/img_118WP_new_003.jpg This is my definition of rich. The day I'm sitting on the front deck of this baby sipping a martini ... I'll say "I've made it. I'm rich." Figure wise, that's a 24M$ for the boat, add another easy 10-15% annual cost in maintenance (from what I've heard) plus the fuel (5800gal needing to be refilled every 380 nm -that's not a typo). Yes, I do have high expectations.
If you can pickup a carrera GT because AND i quote: "The deal was too good to pass up." and "I guess I was in the right place at the right time."[Meaning he was probably on the way to the store to get milk and saw the car from the street ] You're probably rich
Okay let me expand on that answer Even at 2% interest thats still a shade over 80,000 a year in income for essentilly what amounts to just waking up in the mornings. A very respectable income in most places. Triple tax free bonds will yield a nice stable income at an even higher rate of return.
Rich vs. Wealth Shaq is rich, the guy that writes his checks is wealthy. You know your wealthy if you family for example owns the colour blue or something. -Chris Rock
Let's not forget prices raise at a 2-3% rate yearly. So you'd have to make 4-5% to actually make money. 80 grands in 20 years will probably be barely enough to buy a 6 pack of milk!
I think about it this way too. Back in a college colloqium a guest CEO reiterated Kiyosaki saying, "Being wealthy is being able to indefinitely sustain your burn rate without working." As said in "The Millionaire Next Door," many, many people with nice stuff are "big hat, no cattle" types with high incomes and pitiful net worth not even equal to their annual income.
I bought my Ferrari when I was 33. My family was very wealthy ( Over $100mil in assets. ) and being one of only two sons, I have had a cut since I was 23. That said I could have bought one at 23 but could have never looked at my father in the face. (He hated to spend money on just about anything.) So I bought at 33 as I had finally made enough of MY OWN money to support myself, my cat, my lifestyle, AND buy a Ferrari with out touching ANY family money at all!!! So yes, I consider myself rich or wealthy; whatever word you want to use. Depending on your lifestyle, lots of things make you rich at different levels. Take UroTrash: An MD Highly educated and the top of the employment ladder Likely makes at least $150k/year If he lived BY HIM SELF, he would be HIGHLY WEALTHY Add a wife and three girls, (God's name WHY man!?!?!?! Think of the fun we could have!!!!! ) and he is money poor!!!!! I personally believe that any female can spend 10% more than ANY man can make legitimately!!! Esp if he is trying to keep her.
Another thing to factor in is; you can have a big income "working for the man" or not, but no time to enjoy it so that makes you cash rich but time poor. Or you can "indefinately sustain your burn rate" through residual incomes that pay you while you sleep and have plenty of time on your hands. That makes you cash and time rich. That's what I like
I know. I actually have no clue what you make. I based that on what I saw on the web for MD's a few months ago. My point was a lot of my friends say they dont have much money, but when you look at how much they pay to have kids, it adds up to about 50% of there income. I think I cost about $100,000 a year when I was at Harvard. (Dad, btw, never forgave me for not going to med school.) (Damn 4 girls??? You got the shotgun and ready for when the "boyfriends" start coming over? I have a shovel..... )
Yes, but I spent hardly any of it. Sad huh? I was told or raised to make my own way as much as possable. After the USMC Active duty, I did fairly well.
Damn... that post chafed ME, and I wasn't the subject of it. I hope you guys are good friends to be the subject of that!
Boy you hit the nail on the head... I remember my days studying at Oxford. My dad never forgave me for not taking that job as CEO of BMW and coming back to the USA instead to be the lowly Exec VP of finance for Fidelity. He said "Son, we're worth a $200 million - why do you need to work at Fidelity?". I said "I know Dad - actually everyone knows (that I meet), but at least I am not a braggart!".
Its not only a state of mind, as well as a state of the bank account, but is also relative to where you live. A 200k income (the Kerry definition of "rich," as in not entitled to a tax cut) may get you a bit farther in Missouri than it will in New York City. 200k/yr here means you might be able to afford the downpayment and monthly carrying costs of a studio apartment (not in a prime neighborhood or building, either) and could lease a modest car. And, that's about it. Garage fees might break you.
"Im poor and when I say poor I mean we have to share a helicopter with another family" It is all reletive. I would say there three types: under privledge-10k-60k comfortable- 61k-200k ultra wealthy-201k-and up Again this depends on over head and life style expence. Someone who is rich I would consider liquid of 1-2 million
Exactly right. My little brother lives in Brooklyn and makes about 2.5 times what he made living in Missouri doing basically the same job. But, his rent is more than my mortgage and he can't afford to own a car. It is resume building and networking connections for him in NYC. He also enjoys the nightlife. I guess it is all about your personal priorities. He is now looking into buying an apartment and we discussed the costs associated. $200k minimum for a sh!thole with huge monthly fees (owners association?) on top of the mortgage and insurance. For comparison, $200k in St. Louis for example would buy you a nice, brand new 3-bedroom ranch (1800 sq.ft w/ full basement). The point of my original post was that the feeling of wealth and comfort are different for each person. Some people will forever be constantly wanting more and will never feel comfortable enough to say that they are in fact rich. Woman #3 of my post, by 99.9% of the population, would consider her to be rich, but she does not consider herself to be rich. For many, "rich" is just a little more than they have, hence my comment about human nature. Perhaps it is our drive to always seek more that has put us where we are today.
