What is your definition of "Financially Wealthy?"

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What is your definition of "Financially Wealthy?"

Post by Swampy »

It seems that the worldwide media, leaders, politicians and governments have a common misperception. They believe that one's income defines one's wealth. Often it helps, but it doesn't define the whole picture.

A 50 year old person earning $300,000 a year with expenses of $300,000 and less than a month's worth of living expenses put aside is not wealthy (in my opinion).

A 30 year old person earning $30,000 a year with expenses of $20,000 and having 2 years worth of living expenses put aside is, in a relative sense, wealthier.

So the question is:
"
What definition do you use to define true financial wealth?"


I've heard that you can define financial independence by the assets one can withdraw safely year after year, such as 2-3-4-5% or more. That leads to a net worth ranging from 15 to 50 times annual expenses - depending on one's life expectancy and if one wants to leave a legacy. Stanley and Danko did a good job defining it in "The Millionaire Next Door."

Personally, my definition of being wealthy is a low multiple of what my current annual living expenses are - times 50 - once again depending on age and legacy.

Example: If I live on $50,000 a year, in order to consider myself "wealthy," I'd multiply that $50,000 by 3-5, then again by 50 - giving a range between $7.5 to $12.5 million. That number would be different for a 25 or an 85 year old.

This is far different from being financially independent - a number which is a LOT less.

I'll never be wealthy, but I believe that I am financially independent. I purchase items on sale, use coupons, do not visit those 'high end' stores to buy fancy 'fashion designer' clothes or drive a 'luxury' car like a lot of my neighbors do. Then again, I spend most days in the pool and hot tub, while they're sitting in rush hour traffic or at work.

Ultimately, it's about needs versus wants. Financial independence covers my needs and a few 'wants.' Financial wealth covers a multitude of 'wants.'

Maybe that explains why so many entertainers and sports figures die broke, their 'wants' far exceed their needs and their ability to pay for it over the long term. I've personally known and been friendly with a few over the years. They earned more in one year than I earned in a lifetime and, over the years they earned more than I could in 40 or 50 lifetimes, yet my net worth is now higher then theirs! All I did was live mostly within my means, save and make more than my fair share of investing blunders along the way, too.

It was announced recently that the Queen of England was broke and down to her last million!
I've seen Buckingham Palace recently, the annual budget to keep it going is $60 million a year. I can assure you that I won't be taking up any collections for Queen Elizabeth or her family. She can move to Florida and rent a small condo for under $800 a month and still live like a queen (well, sort of)!

Striving for financial independence or financial wealth - what are your goals?

What do you think?
Last edited by Swampy on Sat Feb 01, 2014 8:43 am, edited 1 time in total.
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Re: What is your definition of "Wealthy?"

Post by YDNAL »

Swampy wrote:What is your definition of "Wealthy?"
Healthy & Happy loved ones!
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Re: What is your definition of "Wealthy?"

Post by red5 »

Perhaps wealth should be defined by a level of happiness, joy, content, comfort? Money is just one tool to help achieve that.

Who is wealthier, a multi-millionaire who is miserable throughout life or a young and happy family of four with 100k in the bank and 35k in income?

Just some food for thought.
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Re: What is your definition of "Wealthy?"

Post by Swampy »

That's why I qualified it with "financial" wealth.
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Re: What is your definition of "Wealthy?"

Post by abuss368 »

YDNAL wrote:
Swampy wrote:What is your definition of "Wealthy?"
Healthy & Happy loved ones!
Agreed.
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Re: What is your definition of "Wealthy?"

Post by ajcp »

Swampy wrote: It was announced recently that the Queen of England was broke and down to her last million!
I've seen Buckingham Palace recently, the annual budget to keep it going is $60 million a year. I can assure you that I won't be taking up any collections for Queen Elizabeth or her family. She can move to Florida and rent a small condo for under $800 a month and still live like a queen (well, sort of)!

Striving for financial independence or financial wealth - what are your goals?

What do you think?
In fairness, she has a $50 million annuity and probably a billion in land, so broke is probably isn't the right term. :wink:
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Re: What is your definition of "Wealthy?"

Post by beardsworth »

Swampy wrote:
A 50 year old person earning $300,000 a year with expenses of $300,000 and less than a month's worth of living expenses put aside is not wealthy (in my opinion).

A 30 year old person earning $30,000 a year with expenses of $20,000 and having 2 years worth of living expenses put aside is, in a relative sense, wealthier.
The former is in the top 2% of all U.S. household incomes but needs to get a grip on his or her spending habits. By the reasoning given, a billionaire who spends a billion dollars a year would also be considered "not wealthy."

The latter is admirably living below means, but the means themselves are so slender that this person is ill–prepared for any kind of true disaster (the hypothetical example tells nothing about extent of insurance coverages, including medical, or the individual's job security), or for buying a house, or for having a child.

I realize that the question seeks to address the "psychological" aspects of whether people feel wealthy, but I also think it makes no common sense, considered objectively in terms of dollars, to assert that a household with access to $300,000 per year is actually less well off, and has fewer options in its financial behavior, than a household with access to $30,000.
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Re: What is your definition of "Wealthy?"

Post by Swampy »

The term "All hat, no cattle" comes to mind with some high earners.

I know a former MLB player who is living in a house that is undergoing foreclosure, yet insist on the finest clothes, cars, etc.

They just squandered their money.
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Re: What is your definition of "Wealthy?"

Post by VictoriaF »

I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
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Last edited by VictoriaF on Sat Feb 01, 2014 7:16 am, edited 2 times in total.
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Re: What is your definition of "Wealthy?"

Post by NAVigator »

Using the title of Jack's book, someone is wealthy when they can say they have "Enough".

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Re: What is your definition of "Wealthy?"

Post by tigermilk »

To me, wealthy is when you are never indebted and when you can weather a significant, but realistic, unexpected financial burden.
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Re: What is your definition of "Wealthy?"

Post by YDNAL »

Swampy wrote:That's why I qualified it with "financial" wealth.
"Financial" wealth is meaningless with un-Healthy and un-Happy loved ones. So, besides that it wouldn't matter, there is no consensus definition since it is a personal question.
Swampy wrote:The term "All hat, no cattle" comes to mind with some high earners.

I know a former MLB player who is living in a house that is undergoing foreclosure, yet insist on the finest clothes, cars, etc.

They just squandered their money.
So, there is a passionate baseball player - 100% dedicated to his craft - with 4,256 hits, 17 All-Star games and three World Series wins, managed for 25 years at the Major league level, yet cannot enter the Hall of Fame. His number cannot be retired by the organization he played/managed, and he is not allowed to attend Anniversary Events of the great teams he played for. Spent five months in prison for filing two false income tax returns. Filed for divorce in 2011 after 26 years of marriage. I would venture to say that "financial" wealth may be a problem for this player.

Now, all of this should be meaningless to most people reading your thread.
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Re: What is your definition of "Wealthy?"

Post by Blues »

Having sufficient income and resources to comfortably maintain a chosen lifestyle. I am not of the camp that believes that he or she with the most toys wins.

(Good health and happiness, it should go without saying, is invaluable.)
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Re: What is your definition of "Wealthy?"

Post by Don Christy »

VictoriaF wrote:I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
Victoria
+1 IMO Victoria nailed it, particularly like the last bullet.
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Re: What is your definition of "Wealthy?"

Post by RogerMKE »

What definition do you use to define true financial wealth?
The examples you give illustrate a common problem, which is to confuse income with wealth. Wealth looks at the balance sheet, not just the income statement.

Consider the following two people:

Person A has a high-paying job, earning $300,000 per year.
Person B owns a portfolio of assets that pays $300,000 in dividends per year.

Person B is wealthy. Person A, probably not. Person A is in trouble if they lose their job, and does not have the leisure time of person B.
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Re: What is your definition of "Wealthy?"

Post by pennstater2005 »

YDNAL wrote:
Swampy wrote:What is your definition of "Wealthy?"
Healthy & Happy loved ones!
My idea of wealthy too.
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Re: What is your definition of "Wealthy?"

Post by Professor Emeritus »

VictoriaF wrote:I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
Victoria
I would only add "and can do so for the foreseeable future"
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Re: What is your definition of "Wealthy?"

Post by magneto »

Agree with those others who think wealth should not be an end in itself, but that a healthy and happy family is far more important.

To return to the question asked, would suggest one possible easy measure to define 'Wealthy' is when the assets throw off enough rising income stream for one's needs, without having to sell any of those assets.

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Re: What is your definition of "Wealthy?"

Post by Professor Emeritus »

YDNAL wrote: So, there is a passionate baseball player - 100% dedicated to his craft - with 4,256 hits, 17 All-Star games and three World Series wins, managed for 25 years at the Major league level, yet cannot enter the Hall of Fame. His number cannot be retired by the organization he played/managed, and he is not allowed to attend Anniversary Events of the great teams he played for. Spent five months in prison for filing two false income tax returns. Filed for divorce in 2011 after 26 years of marriage. I would venture to say that "financial" wealth may be a problem for this player.

Now, all of this should be meaningless to most people reading your thread.
It reminds me of a review of "downhill racer" A compelling character study of a gifted, self centered, amoral, talented, deceitful, substitute for a human being and the sports machine that needs him "
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Re: What is your definition of "Wealthy?"

Post by Dave55 »

Victoria, bullseye, right on the $$$
+1
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Re: What is your definition of "Wealthy?"

Post by nisiprius »

What's the purpose of the definition?

With regard to my own happiness, I don't think it is ever possible to be carefree with regard to the future, financial or otherwise, but "wealth" would be measured inversely by the degree to which one worries about money, compared to the amount one worries about other things. I guess I'm riffing on a line in Forrest Gump was Forrest's reaction to Bubba telling him about some fabulous rise in the Apple stock someone had recommended for him:

"Bubba told me that I would never have to worry about money ever again, and so I thought, 'good, one less thing.'"

It's closely related to how hard you need to think about budgeting and buying things.

It is a tricky business, though. I don't think the word "wealth," which replaced has long to go before it runs out of euphemistic steam and needs to be replaced by a fresh euphemism. (I think that 150 years ago "rich" was simply a statement of personal financial status. "Whenever I am rich, only the highbrow publications that pay the least, want my work." "I am rich; but all my gold was fought for with my hands." "You could not forget that I am rich, Suzette?")

To some extent, discussions of the meaning of wealth tend to carry overtones of not allowing envy to mar ones' own happiness. Despite any attempts to define "true wealth"--
Songwriter Greg Brown wrote:I'm a man who's rich in daughters,
And if by some wild chance I get rich in money,
Like say another two thou a year or even one thou a year,
I'm gonna look in to havin' some more daughters.
--the prosaic definition of wealth remains. Irving Berlin might have written the song lyrics "Got no mansion, got no yacht/I'm just happy for what I've got/I've got the sun in the morning and the moon at night," but I think he was reasonably... wealthy, and by all reports he was a tough businessman, and, of course, founded ASCAP and was pitbull-tenacious about royalties.

The phrase "rich beyond the dreams of avarice" could be a benchmark. If there is such a thing as rich beyond the dreams of avarice, then there is such a thing as rich within the dreams of avarice, and therefore, here's another working definition of "wealth." I propose:

Wealth means enough money to evoke envy in me.

And that would mean, personally, in my case: about twice as much money as I have, whatever that happens to be at the moment.
Last edited by nisiprius on Sat Feb 01, 2014 8:32 am, edited 4 times in total.
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Re: What is your definition of "Wealthy?"

Post by midareff »

Swampy wrote:The term "All hat, no cattle" comes to mind with some high earners.

I know a former MLB player who is living in a house that is undergoing foreclosure, yet insist on the finest clothes, cars, etc.

They just squandered their money.

In South Florida, particularly Miami it's called.... All flash, no cash.
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Re: What is your definition of "Wealthy?"

Post by beardsworth »

VictoriaF wrote: A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
As a matter of history, most of the criteria on Victoria's list used to be available, for example, to a person working a union job in an American factory, with good wages, a good pension plan, and other benefits--i.e., a person who was quite solidly middle class and personally engaged in making a physical product. It seems a sign of the times that the choices on that list are now considered the prerogatives of the "wealthy."
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Re: What is your definition of "Financially Wealthy?"

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) (net worth).
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Re: What is your definition of "Financially Wealthy?"

Post by lws6772 »

100% debt free and a nice net worth.
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Re: What is your definition of "Financially Wealthy?"

Post by papito23 »

"A man is rich in proportion to the number of things which he can afford to let alone." -Thoreau, "Walden"

Agree with many that prosperity is about much more than $$. But to address the question in a more strictly financial sense, wealth for me was freedom from debt (a gift from my family and from scholarships), namely, the ability to go back to school with a wife and kid and no steady job (Medicaid is part of the equation too) without feeling the threat of eviction or hunger. We spent ~$20k last year and live like Midwestern royalty: fresh, healthy, local food, a warm house, and internal combustion engine that transports us hundreds of miles on a whim, forests and prairies to explore, high speed internet, Amazon.com shuttling us products from around the globe, etc. we should be the least anxious people on the planet, and I spend most of my time worrying about which of any number of rewarding careers I should pursue, all of which could support this lavish lifestyle.

EDIT: Having found this site probably increased my net worth a bit... but continuing to visit might be making me feel less wealthy. Hmmm....
Last edited by papito23 on Sat Feb 01, 2014 9:30 am, edited 1 time in total.
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Re: What is your definition of "Financially Wealthy?"

Post by stan1 »

Wealthy = 10 times more than I have.
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Re: What is your definition of "Financially Wealthy?"

Post by RadAudit »

nisiprius wrote:Wealth means enough money to evoke envy in me.
I've been frequently surprised at how really small an amount of money that could be when it came to evoking envy in some people.
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Re: What is your definition of "Financially Wealthy?"

Post by Tamahome »

My idea of financially wealthy is the point at which the income from one's portfolio or investments is greater than one's expenditures.

If I have $1,000,000 that spins off $60,000 a year, but I spend $80,000 a year, I am not wealthy.

If I have $1,000,000 that spins off $60,000 a year, but I spend $80,000 a year and have an income of $100,000 a year, I am not wealthy, but I am getting there.

If I have $1,500,000 that spins off $90,000 a year, and I spend $80,000 a year, then I am wealthy.


On second thought, I would add a caveat. The portfolio would have to produce a positive cash flow after considering what I spend AND inflation.
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Re: What is your definition of "Financially Wealthy?"

Post by Ron »

To live (along with my wife) to live life as we wish, and not have to "sell our souls" (e.g. work :mrgreen: ) doing all the things we need/want to do without having to worry about financing our lifestyle.

I don't consider us as "Financially Wealthy" (as the OP's title states). However, we're Financially Independent - which is more important in our life, FWIW.

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Re: What is your definition of "Financially Wealthy?"

Post by Swampy »

As I said, I was just looking at what others define financial wealth as.

It's different from financial independence - for me anyway.

Independence addresses needs.

Wealth addresses wants.

Being healthy, happy and having loved ones goes without saying.

A lonely, miserly billionaire recluse in poor health is NOT (in any sense of the word) wealthy - but money can still provide comfortable surroundings to suffer in.

Look no further than Howard Hughes, a billionaire who suffered a sad, pathetic and miserable end.
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Re: What is your definition of "Wealthy?"

Post by KCJayhawker »

VictoriaF wrote:I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
Victoria
While I do think Victoria's post is spot on I find it interesting to that it was "he" was used in the above post. I think it shows the bias that we all believe the wealthy are typically male.
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Re: What is your definition of "Financially Wealthy?"

Post by jackholloway »

In practical terms, anyone who is in, say, the top decile counts, whatever their emotional status. Anyone in the top 5% certainly does. The two billionaires I know (not well) both seem just as concerned with cash flow as the typical wage slave, but they want to buy whole companies, Gulf Stream jets and land for national parks, not cruise tickets.

This is a relative definition, of course, but it passes the test of "would most people in your society consider you wealthy?" That you can still spend it all seems not as relevant - history is littered with formerly great houses.

Any definition of financial wealth that does not include Howard Hughes does not work for me.
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Re: What is your definition of "Financially Wealthy?"

Post by Quasimodo »

Interesting graphic to determine how your wealth compares with the rest of the world:

http://www.globalrichlist.com

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Re: What is your definition of "Financially Wealthy?"

Post by Abe »

What is my definition of "FINANCIALLY wealthy?'
I equate financially wealthy to financially independent. To me, this means having enough in investable assets that invested passively will produce more than enough income to provide for ones needs and wants with little depletion of capital.
I might add that once one get to that point it will probably not be what you expected it to be. There is no final destination where once you get there all your dreams will come true. "Sooner or later we must realize there is no one station, no one place to arrive at once and for all. The true joy of life is the trip."
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Re: What is your definition of "Wealthy?"

Post by MathWizard »

KCJayhawker wrote:
VictoriaF wrote:I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
Victoria
While I do think Victoria's post is spot on I find it interesting to that it was "he" was used in the above post. I think it shows the bias that we all believe the wealthy are typically male.
I too agree with Victoria. This is a definition which I certainly agree with. It ismore based in freedom
rather than possions.

In fairness to Victoria, I assume she is at least in her 50s, and took the same kinds of English/writing classes as
I did. From that training, I would not assume that the he used above was exclusively male.

When the sex (nowadays they call it gender) of the object of a personal pronoun was unknown or net easily
determined, the masculine pronoun was to be used.
The neuter was not to be used when speaking of a person, and the only other personal pronouns that could be used for
a subject would be either he or she.

Now, often he/she is used. I have seen some fiction writers use s/he and hir instead of his/her.
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Re: What is your definition of "Financially Wealthy?"

Post by Swampy »

Quasimodo, according to US poverty guidelines, http://aspe.hhs.gov/poverty/13poverty.cfm, a couple earning $15510, is technically poor in the US, but wind up in the top 7.23% in the World according to your website.

A person earning minimum wage ($7.25/hr) working 40 hours a week, only getting weekends off, earns $15080 a year, still in the top 7.8% in the World.

Somehow, I don't think either of the above mentioned parties would consider themselves "wealthy."

Someone earning the princely sum of $32350 a year is a dreaded and reviled "one percenter!"

Nah.
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Re: What is your definition of "Financially Wealthy?"

Post by Sriracha »

nisiprius wrote:I guess I'm riffing on a line in Forrest Gump was Forrest's reaction to Bubba telling him about some fabulous rise in the Apple stock someone had recommended for him:

"Bubba told me that I would never have to worry about money ever again, and so I thought, 'good, one less thing."
Excellent point, but I think you meant Lieutenant Dan instead of Bubba, who was dead by the time Forrest became an investor in that famous "fruit company." :happy

As for the OP's question, I try not to expend much time thinking about it from a purely financial perspective b/c it always congures up some ruinous multiple of any figure I'd ever be able to achieve.
Don't reach for yield.
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VictoriaF
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Re: What is your definition of "Wealthy?"

Post by VictoriaF »

MathWizard wrote:
KCJayhawker wrote:
VictoriaF wrote:I don't have a definition, I have a description of what in my opinion a wealthy person can afford to do.

A wealthy person
  • - has the financial resources to pursue his passions.
    - works only on the things he is interested in.
    - pays for the services he does not like to perform himself.
    - pays for the services that free his time.
    - lives in a place (places) of his choice.
    - can afford socializing with the people he likes.
    - does not have to sacrifice his personal, ethical or esthetical standards.
Victoria
While I do think Victoria's post is spot on I find it interesting to that it was "he" was used in the above post. I think it shows the bias that we all believe the wealthy are typically male.
I too agree with Victoria. This is a definition which I certainly agree with. It ismore based in freedom
rather than possions.

In fairness to Victoria, I assume she is at least in her 50s, and took the same kinds of English/writing classes as
I did. From that training, I would not assume that the he used above was exclusively male.

When the sex (nowadays they call it gender) of the object of a personal pronoun was unknown or net easily
determined, the masculine pronoun was to be used.
The neuter was not to be used when speaking of a person, and the only other personal pronouns that could be used for
a subject would be either he or she.

Now, often he/she is used. I have seen some fiction writers use s/he and hir instead of his/her.
English is not my first language, and I picked it up from reading rather than from formal instructions. I apply my own filters to which of my readings I want to imitate. For example, I dislike when people replace gender-specific pronouns with "they," which is particularly awkward when the gender of the person in question is known. I do appreciate it when male scientists use "she" as the gender of choice when describing their research. My use of "he" is my way to reciprocate the courtesy extended by the male scientists.

Victoria
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jowi
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Re: What is your definition of "Financially Wealthy?"

Post by jowi »

To me it's either working and doing something you LOVE or just having the income (retirement) and making enough to live in pretty much any house you'd want to live in in a HCOL area and have plenty left over for travel, college for kids, etc. I don't know for sure what that amount would be (?)

I guess according to the average net worth we are 'technically' wealthy (about 2.5-2.8M) but our income level is NOT wealthy (neither of us works and we make from $90-105K/yr) - so when looking to relocate, we CAN'T buy an expensive house and we have to consider COL - so to me we are NOT wealthy. But we are modestly comfortable and we choose this lifestyle as opposed to working and having more.
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Re: What is your definition of "Financially Wealthy?"

Post by lrak »

When I started working I considered wealthy a lifetime six figure income stream from passive investments. $100k @ 3.5% WR = $3.5M. When my kids were born and I realized that flagship StateU will probably cost $500k, I added another $500k to the number.
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Re: What is your definition of "Financially Wealthy?"

Post by Twins Fan »

Shoot, for some of us small time folks,... like me :D , it can be a simple as being able to pay the bills, no debt other than a mortgage, AND being able to stash some in savings/investments. I've been in much worse financial shape, so pretty pleased with where I've gotten to now... while still looking to improve on the situation of course.

This will be different for everyone, I imagine. But, there's a small timers view of "wealth". What many others ahve mentioned in this thread, I would consider "loaded to the gills". :D
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Re: What is your definition of "Financially Wealthy?"

Post by Investor2 »

jowi wrote:I guess according to the average net worth we are 'technically' wealthy (about 2.5-2.8M) but our income level is NOT wealthy (neither of us works and we make from $90-105K/yr) - so when looking to relocate, we CAN'T buy an expensive house and we have to consider COL - so to me we are NOT wealthy. But we are modestly comfortable and we choose this lifestyle as opposed to working and having more.
Interesting, this is about what I was thinking. In the U.S. today, $3 million in net worth would make one definitely well off, and could probably be considered wealthy in many parts of the country, though not in high cost of living areas like NYC or CA. I'm guessing $5 million in net worth would constitute wealthy anywhere in the U.S., though maybe just "entry-level" wealthy in very high cost of living areas or in areas where many other wealthy people live.
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Re: What is your definition of "Financially Wealthy?"

Post by DonCamillo »

I love Victoria's definition, but for me it is incomplete.

I would add:

Good physical health
Children and/or grandchildren and lots of time spent with them
Friends

This may not seem to be "financially" wealthy, but wealth can free up time for other things, like exercise for health. I personally consider my grandchildren a large portion of my wealth.

Investor2, your categories are similar to criteria private bankers use to group people by assets, High Net Worth Individuals ($1 million), Very High Net Worth Individuals ($5 million) Ultra High Net Worth Individual ($50 million)
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Re: What is your definition of "Wealthy?"

Post by HomerJ »

nisiprius wrote:I don't think it is ever possible to be carefree with regard to the future, financial or otherwise, but "wealth" would be measured inversely by the degree to which one worries about money, compared to the amount one worries about other things.
I agree with this... I feel wealthy because I'm relatively free from money worries... I'm not financially independent yet, but I don't worry about the house furnace dying or a car transmission needing replaced... I don't even worry about losing my job, and that's huge..

Some people think being rich or wealthy means you can afford lots of luxuries... For me, it's freedom from worry...
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Re: What is your definition of "Financially Wealthy?"

Post by Quasimodo »

Swampy wrote:Quasimodo, according to US poverty guidelines, http://aspe.hhs.gov/poverty/13poverty.cfm, a couple earning $15510, is technically poor in the US, but wind up in the top 7.23% in the World according to your website.

A person earning minimum wage ($7.25/hr) working 40 hours a week, only getting weekends off, earns $15080 a year, still in the top 7.8% in the World.

Somehow, I don't think either of the above mentioned parties would consider themselves "wealthy."

Someone earning the princely sum of $32350 a year is a dreaded and reviled "one percenter!"

Nah.

Hi Swampy;

Scrolling down the website, they compare the income one enters to the income of workers in third world nations, with the agenda of making you feel affluent enough to donate to their charity.

Still, it’s interesting to see how one’s income compares to those in other countries, even though the graphic doesn’t consider relative cost of living.

John
Many wealthy people are little more than janitors of their possessions. | | Frank Lloyd Wright, architect (1867-1959)
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Re: What is your definition of "Financially Wealthy?"

Post by rayson »

Financially wealthy = Ability of not needing to work for a living
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Abe
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Re: What is your definition of "Wealthy?"

Post by Abe »

HomerJ wrote:
nisiprius wrote:I don't think it is ever possible to be carefree with regard to the future, financial or otherwise, but "wealth" would be measured inversely by the degree to which one worries about money, compared to the amount one worries about other things.
I agree with this... I feel wealthy because I'm relatively free from money worries... I'm not financially independent yet, but I don't worry about the house furnace dying or a car transmission needing replaced... I don't even worry about losing my job, and that's huge..

Some people think being rich or wealthy means you can afford lots of luxuries... For me, it's freedom from worry...
It's just the opposite with me. According to Investor2 definition, I guess I would be classified as Very High Net Worth. Although it does eliminate some problems, I find that I worry now about as much as I did when I didn't have anything. I do agree though, there is a certain abount of freedom that comes with it.
Slow and steady wins the race.
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Re: What is your definition of "Wealthy?"

Post by HomerJ »

KCJayhawker wrote:While I do think Victoria's post is spot on I find it interesting to that it was "he" was used in the above post. I think it shows the bias that we all believe the wealthy are typically male.
No, that's just a common literary device when speaking about an unknown hypothetical person...

Some people try to use he/she or (s)he, but I find that cumbersome... I just make a point to use a female reference every other time I'm trying to make a point about a hypothetical person.
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HomerJ
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Re: What is your definition of "Wealthy?"

Post by HomerJ »

Abe wrote:
HomerJ wrote:
nisiprius wrote:I don't think it is ever possible to be carefree with regard to the future, financial or otherwise, but "wealth" would be measured inversely by the degree to which one worries about money, compared to the amount one worries about other things.
I agree with this... I feel wealthy because I'm relatively free from money worries... I'm not financially independent yet, but I don't worry about the house furnace dying or a car transmission needing replaced... I don't even worry about losing my job, and that's huge..

Some people think being rich or wealthy means you can afford lots of luxuries... For me, it's freedom from worry...
It's just the opposite with me. According to Investor2 definition, I guess I would be classified as Very High Net Worth. Although it does eliminate some problems, I find that I worry now about as much as I did when I didn't have anything. I do agree though, there is a certain abount of freedom that comes with it.
I'm sure it's all a matter of perspective.

I was pretty poor just 17 years ago, counting every nickel.
12 years ago, I felt pretty wealthy being able to pull out and spend a $20 without worry
7 years ago, I felt pretty wealthy being able to buy a $1000 TV or computer without having to run any numbers
2 years ago, I felt pretty wealthy being able to pay off my house and tell my wife to quit the job she hated, because we had plenty of money.

I don't have fancy things that most people associate with wealth... But you have to be considered somewhat wealthy to be able to say "Yeah, we don't need that money you're bringing in. Go ahead and quit." Only rich people can do that, right?
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