How do you define being rich ? Let's stick to being materialistic here, $ net-worth. | Page 3 | FerrariChat

How do you define being rich ? Let's stick to being materialistic here, $ net-worth.

Discussion in 'Other Off Topic Forum' started by millemiglia, Oct 21, 2004.

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  1. UroTrash

    UroTrash Three Time F1 World Champ
    Consultant Owner

    Jan 20, 2004
    38,863
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    Clifford Gunboat
    A fun old thread to read.

    I wonder how things have changed over 18 years?
     
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  2. plastique999

    plastique999 F1 Veteran
    Owner Silver Subscribed

    Nov 9, 2008
    8,539
    SoCal
    Full Name:
    Edward
    Multiply everything by 10?


    Sent from my iPhone using Tapatalk
     
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  3. Shorn355

    Shorn355 F1 Veteran
    Rossa Subscribed

    Jan 13, 2011
    6,304
    Colorado
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    Scott
    FWIW I would stick a "Wealthy" category in there at $201k-$500k.

    I make a bit over $200k a year- single- live in 1-bedroom townhouse that is 90% paid off and ridiculously low mortgage payment- All 5 cars are paid for- watches paid for- no collaterally-secured debt other than house- minimal revolving debt if at all (usually pay full CC balance each month- $20k in immediate savings- $400k in vested/sellable stock- $700kish in 401k.

    And absolutely do not consider myself rich or wealthy from a financial standpoint by any stretch of the imagination but have a "rich" lifestyle due to not having to stress on money to travel luxuriously and do things with my SO of 20+ years, in great health, can enjoy my cars and watches and splurge on nice things from time to time.

    I'm simple and always considered "rich" people to be those who individually could live however they chose just off the interest of stable assets/investments and "wealthy" to be those who are part of deep family money or deep invention/patent money and associated sell-off or ongoing profit.

    We spend a lot of time in Lauderdale and charter sport boats for a half day to get out on the water but not deal with a bunch of other people- as as go out the intercoastal to the ocean we go by all the amazing houses/yachts and that usually spawns this type of discussion- an example we use is the person who owns Rain-X is very rich- The person who invented the chemical and filed the patent for Rain-X is very wealthy.

    Cheers :cool:
     
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  4. craze

    craze Formula 3

    Mar 5, 2021
    1,026
    Melbourne
    Full Name:
    Michael
    Rich or wealthy i agree the terms can differ, however anyone that can pretty much as they want within reason any day of the week is either in my book lol
    Im still working on that…
     
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  5. Piper

    Piper Two Time F1 World Champ
    Silver Subscribed

    Jun 6, 2010
    24,851
    Northern Virginia
    Full Name:
    Bob
    Rich is current liquidity, wealth is self sustaining liquidity, at least in my book. Either are moving goal posts, grass is always greener. My kid has a >$1000 budget for each birthday and Christmas and considers it barely keeping up with the Jones'. Interesting observation, in pretty much any neighborhood short of the best, everyone is pretty much in the same demographic. You get to the top gated community and all of a sudden like at a Ferrari event, you have much broader means among your neighbors, from barely affording to significant wealth. Same goes for education.
     
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  6. TimN88

    TimN88 F1 Veteran

    Jun 12, 2001
    5,045
    Northeast
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    Tim
    This was fun to read. 20 years later and I still don’t even own a Ferrari or an airplane. The big difference is now that is mostly by choice.
     
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  7. Ak Jim

    Ak Jim F1 Veteran
    Owner Rossa Subscribed

    Dec 23, 2007
    8,451
    North Pole AK
    If you can afford a P-51 Mustang and fly it on a regular basis your wealthy.
     
  8. Doug WG

    Doug WG Rookie

    Jul 26, 2005
    25
    Hi Tim, Doug here from Australia. I found an old thread where you said you knew Bretm. I am trying to contact either Bretm or ChrisMorse in a bid to get a CNC file for a brake bracket to mount 360 handbrake calipers to a 308. Apparently Chris designed the bracket and offerred the file to Bretm way back in 2012! Any lead would be greatly appreiciated. Regards Doug
     
  9. the_stig

    the_stig F1 Rookie

    Sep 19, 2005
    3,477
    Now we have a new wrinkle in that situation: employees who relocated during wfh pandemic times and are now being told by their employers that they must return to the office or take a substantial pay cut as they no longer live in the area that the company was supposedly compensating them for.
     
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  10. woody byrd

    woody byrd Formula Junior
    Silver Subscribed

    Feb 15, 2006
    687
    cary, nc
    Full Name:
    woody byrd
    I think being rich is Having Enough Money to buy whatever I want next.
     
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  11. Adam Greenberg

    Adam Greenberg Formula Junior
    Miami 2018

    May 12, 2018
    280
    Full Name:
    Adam Greenberg
    This is honestly one of the more well discussed topics I’ve seen. It’s really interesting to see everyone’s perspective and I think we all have different circumstances which make this very subjective

    I started out with negative. 4 jobs and a scholarship in undergrad and grad school. My father went broke a few years before I went off to college and was not around.

    Worked my butt off for 20 years. When I could afford my first Ferrari , I still felt like it was something well above what I should have, even though I love cars. My wife is the one that convinced me. Now I have a pista and an F8 and some other cool autos. I live in miami. There is a lot of wealth here so despite making good money ( more than 2M less than 10M) per year and having saved and invested far into the 8 figures, I don’t keep alot of cash, I come in contact with my investors everyday who are multiples of me typically and two kids in private school, all make me still feel pretty damn poor.

    To people I grew up with and my family, I’m sure they have a different perspective than me. But I still get pissed when my iPhone charger stops working after spending 20 bucks….because i don’t like wasting money, since I remember when that 20 dollars was a lot more material …


    Sent from my iPhone using FerrariChat
     
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  12. ryalex

    ryalex Two Time F1 World Champ
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    Aug 6, 2003
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    One of my favorite Rogan clips that touches on the underlying thoughts here:

     
  13. roma1280

    roma1280 F1 Rookie
    Rossa Subscribed

    May 2, 2010
    4,207
    Palm Beach, Roma
    the right answer is 50% more than you have now (and you never reach that amount obviously)
     
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  14. Smiles

    Smiles F1 World Champ
    Lifetime Rossa Owner

    Nov 20, 2003
    16,601
    Pittsburgh, PA
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    Matt F
    Resurrection thread! Lazarus come forth!

    Some earlier comments seem to confuse net wealth with annual income.

    As others have said it depends on where you live and lifestyle you want.

    Matt
     
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  15. Emirateshills575

    Feb 1, 2023
    152
    UAE
    Full Name:
    X
    If financial: Diversification of assets with different annual ROI and risk, as well as your labor costs, and income 7-8digits yearly.

    If mental: your sports healthy body and attractive face, reliable friends and girlfriend.
     
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  16. UroTrash

    UroTrash Three Time F1 World Champ
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    Jan 20, 2004
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    Clifford Gunboat

    I’ve always loved this post and the humility exhibited.

    I have to say, $100 million (2004!) split two ways could get you by if you do your own nails.
     
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  17. GrigioGuy

    GrigioGuy Splenda Daddy
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    Nov 26, 2001
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    Trailer Swift
    I think it was Ryan who stated "I want to be wealthy enough to not own anything at all."

    Imagine being able to just go and do anything, knowing that "your people" will arrange whatever is required wherever you happen to be.

    As for myself, I'll never be wealthy -- at best upper middle class. But I have the house I want in the place I want and don't have to sweat to earn a buck, so I'm good.

    Besides, the Purosangue is not a pretty sedan :)
     
  18. UroTrash

    UroTrash Three Time F1 World Champ
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    Jan 20, 2004
    38,863
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    Clifford Gunboat
    I remember seeing a 60 Minutes segment many years ago about a Trump-like tycoon (not Trump) who owned numerous skyscrapers in NY.

    He had almost no personal possessions.

    No house, car, plane etc. He owned his sofa, coffee table, minimal household items, clothes and personal items. Otherwise he needed no possessions.

    I was awed by being able to be in such a position and I still am.

    I suppose anyone could do it, it would just take a different mindset.
     
  19. roma1280

    roma1280 F1 Rookie
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    May 2, 2010
    4,207
    Palm Beach, Roma
    Golden rule: just because you can doesn’t mean you should.

    That also applies to accumulating possessions which ultimately tip from bringing you pleasure to bringing you stress/cost/unhappiness.

    Keeping 3 great cars and driving them all? Sounds good. Having 12 or 15 or 30 cars just because you can, possibly not so good.
     
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  20. Island Time

    Island Time F1 World Champ
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    Dec 18, 2004
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    David
    According to Schwab’s 2023 Modern Wealth Survey, its seventh annual, Americans said it takes an average net worth of $2.2 million to qualify a person as being wealthy. (Net worth is the sum of your assets minus your liabilities.)

    https://www.kiplinger.com/personal-finance/605075/are-you-rich
    • People with the top 1% of net worth in the U.S. in 2022 had $10,815,000 in net worth.
    • The top 2% had a net worth of $2,472,000.
    • The top 5% had $1,030,000.
    • The top 10% had $854,900.
    • The top 50% had $522,210.
    For more perspective, according to the most recent Federal Reserve Board Survey of Consumer Finances, which is released every three years and is due to be updated in late 2023, the median net worth of all families (meaning half made more and half made less) in 2019 was $121,700…
     
  21. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    I can only assume that the poll was almost completely comprised of people way outside the top 50%, because $2.2M is FAR from wealthy. This was like when I got out of Engineering school making $30k, I thought people making $100k were Thurston Howell rich.
     
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  22. Island Time

    Island Time F1 World Champ
    Silver Subscribed

    Dec 18, 2004
    10,774
    E. TN
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    David
    I agree. It’s relative.

    Being able to hire full-time staff to maintain whatever it is you want… that’s wealthy.

    Short of that your only rich.

    Elton John has someone carry his cell phone for him wherever he goes. The guy always answers Elton’s phone, then asks Elton if he wants to talk to them.

    That’s wealthy.
     
  23. Nosferatu

    Nosferatu Karting

    Aug 31, 2022
    197
    USA
    You have to remember people in here that own these cars are already part of the 1% or 2% club more than likely so it's really going to be relative. Especially if you own one or more of the newer variant Ferrari cars.

    Like the post a few above me it says $2.2 million to be wealthy and roughly puts you in the 2% club which is net worth of around $2.4 million. I can say it really comes down to are you happy? I'm a more passive happy than an active happy. I am a tad above the 2% club at age 40 (e.g. more than the 2.4 but no where near the 10.1 million worth) so I'm not "rolling in cash" but I'm certainly not living paycheck to paycheck. I'm happy.

    I have friends that want to keep pushing. I'm all for the keep pushing people, go for it, live it, earn it, etc. However those same people I hear them telling me man I wish I had more free time. They don't have time to spend with friends or family or when they do it's limited. I have more off days than work days so that I can spend it with family and while I save for tomorrow I certainly live for today. I've travelled the world (before kids) and have had my fair share of fun cars and have explored other hobbies of mine. While the kids have kept me more planted (3 yr old and 3 mo old) we plan on travelling once the second gets a bit older. We still enjoy our hobbies and passions.

    Depending how you generate your wealth/income I always feel there needs to be a line between generating wealth so you can retire but you need to also live in the moment. I am off more than I work and if I wanted to assert myself I'm sure I could make more but I just sit back and look at the big picture and enjoy the now. I'm not 15+ cars with a 7-8 figure house generating 7 figures a year but at the end of the day, I'm happy. I would just be more happy when I can quit working but otherwise...happy and consider myself fortunate where I am considering no one in my or my wife's family before us were "professionals" education-wise.
     

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