How rich is rich?

[DanS]

$750,000 per annum. Might get by with $500,000. More than a doctor or lawyer makes (usually). Otherwise, you're just upper middle class.

[Andrew1999]

There's a lady in California suing for $320,000 per month child support as part of a billionaire divorce case. Apparently their little girl will be terribly traumatized if she doesn't have charter jets taking her to France, etc. (I'm not blaming the kid--I think she's 3 years old and probably has other things on her mind.)

[Jaguar]

gosh, everyone here thinks I'm rich. I suppose I kind of am, though.

[Seneca]

Originally posted by Provost Harrison


Well even I earn more than $24 per annum

Oh dear... I don't....

But by the standards of the majority of the human race, I'm ridiculously wealthy.

[Caligastia]

Its not how much you earn so much as managing your money and being dept-free.

[Provost Harrison]

Originally posted by Seneca
But by the standards of the majority of the human race, I'm ridiculously wealthy.

Yes, this is one thing that those of us in Western society should remember how lucky we are and how well off we are. This is not to say we should rest on our laurels. In fact our wealthy society should be trying to allow everywhere to have our standard of living.

[Victor Galis]

$130,000 isn't much if you live in a new house in Silicon Valley and drive a relatively new car. On the other hand, in the middle of nowhere, that allows you to buy a new house every year

To be rich you must have enough money to spend on luxuries and other non-utilititarian items. Richness is a function of the cost of living where you live not an absolute.

If you make $5000 a year in a country where the average is $500 then you're rich. If you make $200,000 in an area where the cheapest house costs nearly a million...

[Caligastia]

Originally posted by Provost Harrison


Yes, this is one thing that those of us in Western society should remember how lucky we are and how well off we are. This is not to say we should rest on our laurels. In fact our wealthy society should be trying to allow everywhere to have our standard of living.

How will that happen? Fact is most societies are not capable of our standard of living.

[Alexander's Horse]

Re: How rich is rich?

Originally posted by Seneca

I was intrigued by a thread on Newsmax where someone earning $130,000 p.a. was complaining about how little money he had left after he paid taxes, health insurance, mortgage and kids' education.

Well old horsie and Mrs horse earn around that amount

But it points up a thing that all the wealth creation gurus point out - how wealthy you are or become does not depend on how money you earn. Many people on high incomes are as poor as church mice because they are income rich but asset poor. In other words, they spend all their income and fund their lifestyle with debt. Every pay rise gets pissed up against the wall the same way. These people rent big houses, lease flash cars and run up big credit debts on expensive consumer items like holidays and nice clothes. But in the end they depend on their income to survive and if they lose their income they lose everything.

On the other hand, many people on much lower incomes end up much wealthier by following 2 simple rules. 1. They live within their means and 2. they save money and invest it. People like this usually also have debt but its productive debt on growth assets, like paying off their house or a share portfolio. People who follow these simple rules can end up very wealthy indeed.

[Seneca]

Re: Re: How rich is rich?

Originally posted by Alexander's Horse


Well old horsie and Mrs horse earn around that amount

Together, I hope? Otherwise I may have to resent you.

And then you'll be sorry.

[Alexander's Horse]

Seneca, did you read my post? It doesn't matter what income you are on, its what you do with it that counts

Of coruse if your on a subsistence income what I'm saying doesn't apply

[Seneca]

I think I can safely say that's easier to say on your income than on mine...

But no, I'm not struggling, but I would be with a family.

[Alexander's Horse]

I'm merely making the point that this guy feels poor because you'll probably find he doesn't have control of his finances. A person who has control of their finances feels secure and that could be defined as rich.

A guy wrote a book about millionaires in America recently. He called it "the millionaire next door" because he found most wealthy Americans live in ordinary houses, have ordinary jobs and drive old cars. They just have good spending and saving habits.

[Provost Harrison]

But conversely, what is the point in having millions if you can't enjoy or spend it? The money's no good if you are dead!

[Seneca]

I'm perfectly in control of my finances - my last debts should be paid off by June.

But there's not a lot of room for expansion - I'm in control as long as I don't live in more than two rooms and don't have kids.