How do you define "rich"

[Pavo]

Hello all -

I've been toying with the definition for a while now, especially after some people have told me that I am 'rich.'

How do you define rich?

And when I ask that, I am speaking strictly in assets of monetary value or corporeal richness. I personally do believe that you can be rich in many ways - emotionally, ethereal(ly), mentally, spiritually - as well as bankrupt.

I think it's all relative - I'm rich when compared to the family of 6 in Nepal, but am I rich when compared to a colleague at work? Is it determined by net worth alone? Number of properties you own? Is there a tangible value or benchmark figure to work off of?

Interested in others' thoughts.

[REWahoo]

Quote:

Originally Posted by Pavo I think it's all relative -

Yep. No one around here thinks I'm rich...except my relatives.

[Eyerishgold]

The term "rich" is so objective that it's difficult to define. As you state, it's all relative. There was a thread started recently saying that $5 mm is the new $1 mm. That's pretty accurate in my estimation. I think having $5 million in investable assets makes your "rich" or "wealthy" by anybody's standards. With $5 million you might not be as rich as some are but I think you're deifnitely rich.

[Rustic23]

The poverty level in the us is between $13,000 and $20,000 depending on the number of people in th family. The medium family income is around $48,000.

So what is rich? I'll bet to those making $13,000 the medium income folks are rich. However, in no way would Bill or Warren consider those with $48,000 incomes rich.

Therefore, IMHO, rich is in the eye of the beholder.

[bbbamI]

How do I define rich?

When the money works for me instead of me working for the money.

[FinanceGeek]

bbbamI has got the right idea, I'd define it as "having enough assets to meet one's current and future spending needs while following a conservative investment strategy".

A reasonable operating definition might be getting to the high 90s on FireCalc.

[mickeyd]

I'm rich.

Of course, I never realized it until ER became a reality and I found myself saying "Damn, I'll never get around to spending all of this if it takes a lifetime"...and it will.

[retire@40]

Quote:

Originally Posted by bbbamI How do I define rich? When the money works for me instead of me working for the money.

Thank you William E. Thomason.

[retire@40]

Rich is when your glass is completely full. It all depends on the size of your glass.

[W2R]

When I was younger, I thought that being rich meant having an income maybe three standard deviations above the mean.

Now, looking around me, I think that being rich, or poor, is primarily a state of mind.

[citrine]

For me rich means:

Able to save for retirement.
Able to pay all of my bills.
Having a diverse group of friends and personal interests.
Having a sense of self.
Having spirituality.
Having peace of mind and serenity.

[brewer12345]

Rich to me means being wealthy enough that you really don't have to care about money ever again.

[unclemick]

Quote:

Originally Posted by brewer12345 Rich to me means being wealthy enough that you really don't have to care about money ever again.

ER - as in not having a J-O-B and no intention of thinking about one, let alone looking.

- 14th year .

[Meadbh]

Quote:

Originally Posted by citrine For me rich means: Able to save for retirement. Able to pay all of my bills. Having a diverse group of friends and personal interests. Having a sense of self. Having spirituality. Having peace of mind and serenity.

That is a perfect definition of "rich", thank you Citrine!
I'm batting 4 out of 6 right now but need to work on #3 and #6.

[Sam]

To me "rich" and "financially independent" are synonymous. So a person is rich when he has enough wealth to support his lifestyle, be it 6K/year or 600K/year.

[Bigritchie]

Quote:

Originally Posted by bbbamI How do I define rich? When the money works for me instead of me working for the money.

Exactly!

[Rustic23]

If this thread was 'What is well off', I may agree with the if you are FI you are well off. IMHO rich is a different creature. There are people on this board that appear to get by on less than $35,000 annually. For me that's not rich. As all there financial desires appear to be fulfilled I would say they are financially well off. Not rich. Most of the members of Congress are rich. Well over a several million in assets and income.

For me rich is still relative, and, to some extent that is the problem. While I don't have the exact stats, folks making more that $100,000 a year were in the top 5% of the nation, and over $250,000 were in the top 1%.

I have seen several post on this board from those that pro-port to have incomes above $100,000 and some over $200,000. My guess is they feel well off, but not particularly rich. However, to those living on less than $35,000, I'll bet those folks are rich.

[travelover]

Maybe this is old news:

http://opencrs.cdt.org/rpts/RL30922_20060522.pdf

Page 15 shows median and average savings by age group for 2001 and 2004.

For me it gives some perspective of how "rich" I am, relative to the rest of the country.

[Miss_Lala]

Quote:

Originally Posted by travelover Maybe this is old news: http://opencrs.cdt.org/rpts/RL30922_20060522.pdf Page 15 shows median and average savings by age group for 2001 and 2004. For me it gives some perspective of how "rich" I am, relative to the rest of the country.

I hate it when the age range is "35 and under". Being 11 years under that, yes, my accounts are less. I wish they at least had a catagory of 30 and under.

[travelover]

Quote:

Originally Posted by Miss_Lala I hate it when the age range is "35 and under". Being 11 years under that, yes, my accounts are less. I wish they at least had a catagory of 30 and under.

Sure, rub it in to us old coots!