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How rich is rich?

post #1 of 66
3/22/10 at 12:33pm
Thread Starter 
Hello guys, I've been very interested numbers lately, and have been curious about what others think a rich person is. What salary, life style, location etc... would made a person rich in your opinion?
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post #2 of 66
3/22/10 at 12:35pm
Well lets see...

I make $28,000/yr
I have $8000 in personal credit card debit.

Anything more than I have is rich
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post #3 of 66
3/22/10 at 12:38pm
Find out how rich you are.

Global Rich List
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post #4 of 66
3/22/10 at 12:57pm
How rich someone is depends on how much power they have due to their wealth.

If you are rich enough that you have a direct line to a senator, gov officials and even the president, then you're rich.
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post #5 of 66
3/22/10 at 1:08pm
Hmmm, good question.
I would say that you have an annual income of at least 5-10 times the country average. All in all economic freedom to buy pretty much anything you want, like a really nice property in the finer areas of the city, a yacht, cabin in the mountains, exclusive holidays abroad, ...

I am not there myself, although I am well within the top 1% richest people in the world!
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post #6 of 66
3/22/10 at 1:26pm
I have a home, a job and a reasonably healthy family. I'm rich without even taking into account how much I earn. Richness isn't just about money.
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post #7 of 66
3/22/10 at 1:26pm
Most people thing that someone who earns 3X more than they make is rich.

Wall Street Journal article said that you need $10,000,000 in net worth to be considered rich.

Salary is a misleading indicator for most of us. Let's say that you make $250,000 a year but spend most if it - you aren't rich, just a large scale consumer.

Income isn't the key indicator of wealth, net worth is.

Lots of folks you may think are average may be rich, like in the book The Millionaire Next Door.

They don't spend money on fancy cars and watches and headphones - they save and invest.
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post #8 of 66
3/22/10 at 1:44pm
Thread Starter 
In my opinion, being rich doesn't depend on one factor only. You need first of all to have a reasonably high income, enough to live comfortably, have enough money and assets to survive in case of an economic crisis or loss of job. There is no objective definition of the term "rich", but the majority of people would consider someone to be rich if their net worth is equal or greater than themselves. You may make a million dollars a years and spend 800k, but that wouldn't make you rich in my opinion. It's like defining god and his existence; it's a very subjective term and the definition is usually influenced by the person asking himself the question "am I rich", which is then manipulated in one's favor. Well, that's how I think of it at least.
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post #9 of 66
3/22/10 at 1:46pm
Rich can be defined, in terms of money, as the point beyond which more money does not improve your lifestyle.

Or...rich can be defined as the point beyond which money no longer matters.

Take your choice.
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post #10 of 66
3/22/10 at 1:48pm
anyone who have more than 1 billion dollars is rich.
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post #11 of 66
3/22/10 at 2:06pm
There is no defined universal dollar figure for it. I'd guess that we all have different dollar levels where we think rich begins.

When I was young I though $1 million was rich. Now you could barely retire on that amount. My image of rich would start at $50 million. Someone with that money could live a rich lifestyle. But they would pale in comparison to someone at $500 million or a billionaire.

Either way, at $10 million you would certainly be done with anymore money related stress at all, assuming you are conservative and diversified in your investments.
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post #12 of 66
3/22/10 at 2:39pm
It's all about your frame of reference.

In the end, it's just a descriptor.
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post #13 of 66
3/22/10 at 3:11pm
Quote:
Originally Posted by robm321 View Post
There is no defined universal dollar figure for it. I'd guess that we all have different dollar levels where we think rich begins.

When I was young I though $1 million was rich. Now you could barely retire on that amount. My image of rich would start at $50 million. Someone with that money could live a rich lifestyle. But they would pale in comparison to someone at $500 million or a billionaire.

Either way, at $10 million you would certainly be done with anymore money related stress at all, assuming you are conservative and diversified in your investments.
how much would $1mil in securities when you were young be worth today? (assume asset allocation similar to most retirement plan - 100% stock when you were young, and 100% muni bond when you retire) - I am predicting it's somewhere around $10mil
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post #14 of 66
3/22/10 at 3:25pm
Quote:
Originally Posted by krmathis View Post
Hmmm, good question.
I would say that you have an annual income of at least 5-10 times the country average. All in all economic freedom to buy pretty much anything you want, like a really nice property in the finer areas of the city, a yacht, cabin in the mountains, exclusive holidays abroad, ...

I am not there myself, although I am well within the top 1% richest people in the world!
interesting website... according to that i'm in the top 0.80%.. but in california, i'm probably just average
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post #15 of 66
3/22/10 at 3:31pm
Quote:
Originally Posted by koven View Post
interesting website... according to that i'm in the top 0.80%.. but in california, i'm probably just average
That scale taps out at $250k/yr in salary (0.001%). You are only middle class in NY with that salary and you can, at most, buy a crappy little 2 bedroom in the city. So I don't see the point of the scale.
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