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

I'm guessing that it was much easier to take some risks knowing that, at the very least, you would still have the 'cut'.

 

We are.

 

Wealth to me is having enough money AND the time to enjoy it...very few people fall into this category.

Many folks have assets, as do I. My wife and I always sit around and wonder what we are doing wrong (jokingly, most of the time). We own realestate in the millions, but have very little sitting around in cash. We don't buy designer clothes, don't have a maid, and don't have a nanny. I finally succummed to get a company to do my landscaping/maintenance. On paper, we are rich - it doesn't feel like it, though. And maybe thats the secret to getting to be wealthy - invest like crazy, and eventually you hit a critical mass where you can quit your job and just invest in realestate/stocks/etc on a full time basis. I know I could sell all of my assets and buy quite a few nice things (a new ferrari, the lakefront house, etc), but it just isn't in my personality to do that. Eventually you accumulate enough assets to replace your income...and you hope your spending habits don't increase accordingly...

Most folks I know who are "rich" are amongst the hardest working people I know. And quite frankly, very few show their wealth (The Millionaire Next Door was right about this). Unbeknownst to me and my wife, her uncle owns 2 construction companies, but lives in a modest 400K house. He has a new s-class, a lexus, and a cabin in the woods, but doesn't look that "rich." Hell, if anything he looks like a regular joe-shmoe. I figured he had some money, but didn't realize the depth of his wealth until his foreman made some funny comments.

I asked her uncle to replace a roof on one of my small commercial buildings - a 15-20k$ job. The local contractors were offering ridiculous bids. My wife's uncle gleefully came to do it, though I live 2 hours away - he also did it at a discount. I thought I was doing my wife's uncle a favor, seeing as to how he was saying this was his slow season. I even had him come to follow up on a small section of roof that was a bit loose. He came, and smiled the whole time.

I saw his foreman, who was acting a little peeved with all of this driving, and asked why. He said he was tired of driving up here for these little "dip-sh*t jobs." He said the last project they did was 12mm dollars, and usually the smallest projects are 1-2mmilion plus... I was dumfounded. Here I thought I was helping my wife's uncle, and the reverse was true. As the foreman put it, this guys ****s out more money in a day than I make in a month...and he didn't look it... I felt like such a dumbsh*t, as I had commented to her uncle how he should consider investing in realestate - he smiled politely and said he just didn't have the time....his foreman later told me that he didn't have to buy realestate, he was too busy buying up oil fields...(sigh, this was a year ago too - I'm guessing he did very well with his investment...)

Yep, most people are "big hat, no cattle." Most docs I know have a NEGATIVE net worth, even if you include their homes...student loans are a killer. Yet they have nice homes, cars, etc...silly way to live.

 

Thank God for Medicaid and food stamps for the kids. SSD helps pay for shoes so they don't have to go barefooted to school.

 

"Millionaire Next Door" good book to read at my age. Being wealthy is living BELOW your means. I will not get my Ferrari until all the kids colleges are paid for, house mortage is done, and insurance is good. that is what i consider wealthy.

 

Yea, he's pissed at me.


Cant blame him though. It was a very poorly worded post.

 

Happiness. Its easier when your not poor and in the computer field I'm not hurtin' but I can't afford the same toys right now as others. I do what makes me happy and regrets belong at the front door where you wipe your feet. Quickly forgotten.

 

It is 100% in the mind. When I drive the 4.4i I feel as if I'm on top of the world with nothing to stop me. When I drive the r230, I feel as if I'm having the party of the century in two doors. When I drive the ten year old LS400, I feel rich. Why? The car's worth one tenth of the X5; environment.

Mind effects. I did a quick crude study on this with a few friends and stuff a few months back involving a wide variety of vehicles with my friends blindfolded. What materials and stuff felt "rich" and etc.,

 

As others here mentioned the 'living' costs vary widely depending on your locale. Plenty of people here in the N.Y metro area and elsewhere have done well just by owning a home thats quadrupled in value over the last 10 years.
So their net worth is much higher, but only on paper. Unless you moved out of state to a much cheaper area it is moot. Im grateful to have owned my home of the last 7 years before the bubble. I feel for younger people who want to live here now, come up with 20% down and a huge mortage to live in a modest home thats close to a Million dollars. Trust me they dont feel rich!

 

Sometimes people are just brought up that way. This is how my family is. Niether of my parents had alot of money growing up so they werent used to spending $1000's on clothes and luxury cars. The only thing my mom spends $ on are plants and trees for her 1.5 acres of gardens (you need something to fill the time when your kids all moved out). This isnt to say they are cheap though, as we still take nice vacations and have nice stuff. I'm sure my father was the only partner at his firm driving a 94 honda accord to work in NYC 6 or 7 days a week until 3 years ago when he finally decided to get an Audi, and now an acura.

edit- This post also reminds me on an Fchat member, who hasnt posted in a while. He looks and acts like a normal guy, then you find out he owns an F355, a testarossa and two other sportscars. If i ever own such cars i hope i'm the same way.

 

But by that time, you'll be too old to drive it at the proper illegal speeds.

 

Do you really consider $200k+ ultra wealthy? At $200k/yr, you can't afford a jet, or a second home in Aspen, or to even fly the family first class for two weeks in Europe. You're not starving, but you're not ultra wealthy either.

 

I don't think so. Cool Kid has it figured out.

 

You have to put this in prespective..........average annual income in the us right now is a tad about 30k. Obviously to live the lifestyle of which you and I want is 550k/year

 

Speak for yourself (j/k). I wouldnt mind the lifestyle of someone who makes 20m a year. Then i could finally afford that WWII warbird collection and L-39 jet trainer ive always wanted.

 

550k isn't as much as you think. Net of tax it is under 300K. Still a lot of money but doesn't make you rich IMO. The current tax rate in Calif. is 9% with a top fed rate of 35%. Total of 44% not counting social security, and other mandated deductions. Takes a few years of saving and investing to develop a portfolio. This is why many are so against the class warfare we see in politics when it comes to taxation.

 

This is a great post, let's keep it going!

To quote Gordon Gekko... "Greed is good."


-DC

 

I say you are wealthy if you have $10 million. $1 million doesnt cut it anymore i have spent several million myself and have not much to show for it. At $10 million I think it would be much harder to spend just the interest. Unless your mike tyson.

john

 

If you live in a metropolitan area, you need about 500k (after tax) to live really well, if your assets aren't paid for. If they are, then you can probably get by on $300k (after tax). Remember, if you own a plane even a small one, you can count on about $100k per year to operate it (a lot more if its a jet, and you don't pilot it yourself, a G4 costs about 2.5 million a year to operate, assuming 200 hours per year as an example). Helicopters are literally siphons from your wallet, they cost a fortune to operate and maintain (I only know one person who has one).

What I've found is that when I've got money, I've got no time. When I've got time, I've got no money. Problem with parental selection: mine weren't rich, and I've got to earn my own. Makes it tough.

 

Good night John-Boy.

 

damn right i do. I have my priorities.

 

Rich to me is 10mm+

Really rich is 11-50mm+

Super rich would be in the hundreds. I can't really think of a word for billionaires, but I suppose they would be called massively rich. lol

I hopefully will be there someday, don't doubt it. I'm haven't gone to a movie or a party in over a year. I just need to concentrate. I'm not obsessive; I'm having fun. Right? Just another 1,000 million to, right?

 

You do have your priorities, but there is no way I'm waiting till 40 to get a Ferrari. Not even 30. We'll see about 20. I'm sure my hard work will pay off soon. Planning is key. Actually... I'm going to start another thread here...