Submitted by Coronazonewearmask t3_10nwqds in Showerthoughts
I’m talking USD and I’m talking people with more than 1 million, not borderline millionaires.
Comments
BeepBlipBlapBloop t1_j6bb9c7 wrote
To me "rich" means you can choose not to work for the rest of your life and still have enough money to be comfortable.
A million dollars already won't cut it by that standard.
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ChickenStripEater t1_j6bbw9n wrote
Surveys have shown that the average person considers someone “rich” only if they have a net worth over 2.2 million. So that day has unfortunately already passed.
limacharley t1_j6bbzuf wrote
That day has come and gone.
To me, rich means never having to worry about money again. A million dollars isn't enough for that. You probably need at least ten million .
Shlafenflarst t1_j6bciv1 wrote
I consider myself rich when I have 4 figures on both my bank accounts at the end of the month. We have very different standards...
OlasNah t1_j6bdf8g wrote
Plenty of people out there probably have a net worth in that range and are definitely not rich
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pmmeyour_existential t1_j6bgad1 wrote
There was a man named Nelson Aldrich who was a buddy of john d rockafeller and when he died in 1915 it was disclosed his wealth upon death was around 90 million dollars. John, it is said, commented that “Nelson had us all fooled into thinking he was a truly rich man.”
So the wealthy didn’t consider 90 million as rich back in 1 9 1 5.
Next_Ad4035 t1_j6bkf2u wrote
It’s already this way in some countries where currency exchange is like 1 : 20,000 lol
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Troublesome_Geese t1_j6bt5zt wrote
1 million Indonesian Rupiah= $70 USD. I have a casual 100k sitting in my wallet right now baby.
Next_Ad4035 t1_j6btffa wrote
There you go lol
dogshelter t1_j6c8533 wrote
Rich depends on your lifestyle standards. It isn’t defined by the cash you have available, but by the needs you have unmet.
Once you have no unmet needs, you are rich.
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Nullcaller t1_j6ca80k wrote
Uhhh... Currency redenomination is still a thing. Though, admittedly, it's harder in the 21st century with many virtual moneys floating around.
Previous_Call_7215 t1_j6cahrd wrote
A millionaire is in the top 10% of earners. I think that’s pretty rich
TheRomanRuler t1_j6cc1ar wrote
Well arguably day has already come. Also in what currency? In some currencies million won't buy you a phone. Also we can choose at any time to just cut extra zeroes from our currency's numbers, so million becomes 10 000 for example, without changing the actual value of the money (so not printing more money, but saying that 10 of old money is worth 1 of new money). That way we might never become millionaries regardless of inflation.
SCirish843 t1_j6cd5ta wrote
Super underestimate, making 600k puts you in the top 1%. When people get mad about all the greed and "the 1%" they're actually thinking of the 1% of that 1% but it's just such an unfathomable amount of money that it gets blurred together
SCirish843 t1_j6cd8mu wrote
I wouldn't stop working unless I had 10m, taxes already paid, set aside
Previous_Call_7215 t1_j6cdt9u wrote
Are you talking about the world or in the US? I was talking about the US.
SCirish843 t1_j6ce3g9 wrote
The US, I think the confusion is I think you're talking net worth where I'm talking yearly income. Usually when the 1% discussion happens it's "how much do you have to make in a year to be in the 1%" but if you were talking about the net worth of the 1% then yea it would be a much higher number
Previous_Call_7215 t1_j6ceb3u wrote
Ya i was just taking 22 million millionaires and dividing that by the US population and saying they have a higher net worth than 90% of the population
Wildjay7931 t1_j6cgety wrote
Okay. I'm 26. I'm going to a university to get my bachelors. And the university is a relatively low cost public university. With my bachelors, two minors, and side associates I'm working for, it's going to take me about 5 years for my degrees and minors. Now, I live alone in a single bedroom apartment. Relatively cheap for where I live. A little less than 900 per month. And most other living expenses are covered in my apartment besides electricity which costs about 65 a month for how I live currently. I also have a cheap relatively old, but reliable used car with actually really good has mileage of 30 miles per Gallon. I also have low income myself and have free Healthcare where I live as well as I receive about 200 a month from a local program to help with my food expenses.
Now, having a noteably low income such as me and being fully independent I receive a healthy amount of financial aid for school and living expenses.
However -and I've done the math for this already out of personal curiosity- if I didn't receive financial aid, the next five years all together with both living and school expenses, with me living completely alone. Just paying for myself. It would cost me about 300,000 dollars.
Now, that's not a million dollars. But it is 30% of a million in only five years. And with this I finish with the same economic standing I started with. Broke. Haha!
And after I finish my bachelors I will continue my schooling for my masters and eventually my doctorate. Now this holds different economic terms, but still, my point is - a million dollar isn't that much.
I personal could live a similar lifestyle to what I am now for only about 15 years with a million dollars. And being 26 I'd still have a long time after that to go. And that's living in the same cheap living I am.
Now, I understand it varies by person, area, situation, action, etc. But still.
In reality, right now, a million dollars isn't much.
If I was given a million dollars in cash with no catch or consequences, I would hold on to it tight, keep it safe, and spend it smart. Because it takes more than a million.
iamr3d88 t1_j6cgpaf wrote
A millionaire is someone with a million in assets. It has nothing to do with what you earn. People could make 250k per year and never be a millionaire, while others can do it on 60k.
iamr3d88 t1_j6cgteb wrote
3-5 should cut it for most people. 4% "safe" rate means 3mil can live on 120k forever. That's good money. Especially when you don't have to save anymore.
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daisy-09010 t1_j6ckz92 wrote
If I had a million dollars I could buy 4 houses where I live now & live in one then rent out the other 3, I’d call that pretty rich imo
Ilona92 t1_j6cmfa3 wrote
Well in Poland in '80 everybody were millionaires. #hiperinflation
Sir-Viette t1_j6cmkeo wrote
It depends on what the inflation rate is. In the US, it’s 6.5% per annum. If you earned 4% and didn’t spend any of it, you’d still be effectively losing money.
However, if someone is at the end of their life, perhaps it doesn’t matter so much.
BeefPieSoup t1_j6cnbjz wrote
Something like 10% of all people in Australia are millionaires, so we're sort of there already.
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elpajaroquemamais t1_j6comkd wrote
Your income would be about $35000-50000 a year in that case. If you can live off of that then you’re set.
DarkSoulFWT t1_j6coxu0 wrote
By his standard that you can choose not to work and still be fine, no, it isnt. Not even close to rich. You will need like 3-4 million iirc just to make it through your whole life with a good standard of life. Just having 1m isnt enough.
Ofc if you continue to work and you get to that 1m mark early then yes you are quite well off, but again, it is hard to say you are really rich imo. Its good money, but its not "fuck my job, i do what i want" money.
iPon3 t1_j6cpdx1 wrote
It's been that for at least a decade, more if you're in a big city
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Senrub482 t1_j6crb7t wrote
There was a time in Zimbabwe where they had to introduce a 100 trillion dollar bill due to an inflation of 36000000000%. This was before they had the US dollar as their currency but if you had a million dollars, you would have about 1/1000 of a penny.
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I-dont-rickroll t1_j6ctp1a wrote
If you have a million dollars and do not invest them to rest and still have enough money to be comfortable but only spend them, I doubt you’d be able to get that million in the first place.
radioactivebeaver t1_j6cu1of wrote
You have 2 bank accounts? Mr Wall Street over here
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stargate-command t1_j6cvmhs wrote
We’re past that point already. In my area, homes are 1.5 - 2m. So if you lived here and suddenly got 2 mil, you’d not be rich, you’d just be able to buy a house to live in.
Bartholomeuske t1_j6cvs4t wrote
Both on minus. Does that count?
thathandsomehandsome t1_j6cw1oh wrote
I agree that it has passed, but I’d say 2-3 million with no/low debt is “rich”.
There’s no point in having even 10 million, if you owe 10+ million. Living within your means is key.
Irishbeast57 t1_j6cwnnw wrote
I think he is referring to the idea that you can safely withdraw 4% per annum and not lose your initial capital
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Sir-Viette t1_j6cx1ji wrote
Yes that's true. But inflation would mean that the same initial capital would buy 6.5% less every year.
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Cajun49 t1_j6cyufu wrote
I came here to say this.
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IMarvinTPA t1_j6cz5at wrote
Look into the term hyperinflation. We are closer to $1,000,000 bread than we are to $0.10 bread.
Realestate122 t1_j6czebp wrote
I’d be surprised if there weren’t more millionaires who had “cash flow” concerns vs. millionaires who considered themselves rich.
It’s been 20+ years since being a millionaire meant you had F You money.
the_storm_rider t1_j6czx6f wrote
Wow, I didn't know the time machine was already invented. We have a post from 1976 showing up in 2023! I bet the next post is "one day, we will probably have computers that can replace typewriters!"
Laceyyyyyyy t1_j6czyos wrote
Mario_911 t1_j6d0apv wrote
How often in the last 20 years has inflation been over 5%
StrangeKnee7254 t1_j6d0e5l wrote
The 4% withdrawal rate takes inflation and bear markets into account.
Trillionbucks t1_j6d0oz9 wrote
You could consider the social security like a RMD from a fund, so a full SS check of $4500 could be considered coming from a bucket of $1.125 million, add that to your other buckets like an IRA and there you have it.
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mapleisthesky t1_j6d35c2 wrote
Having 1m in assets is not rich, most detach houses in Canada or USA are around 1 mil alone.
Id say rich is 1mil per year income.
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Ferna_89 t1_j6d7d4h wrote
Lots of Venezuelans are millionaires and they cannot afford bread.
Aspy343 t1_j6d7wam wrote
My house is worth around $800k (5 bedrooms). I have about 25k in the bank. I haven't worked for years (mental health issues) but can comfortably live because I have lodgers in the house. I enjoy living with the other people so it works great.
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got_lukky t1_j6dcgh5 wrote
We already don’t consider ourselves rich. The average global salary is $850USD/year, and anybody earning more than $41,000 USD is in the top 3% of the wealthy globally.
tuan_kaki t1_j6ddvdi wrote
That’s now buddy. 1 million cash in the bank puts you squarely within the actual middle class.
American_PP t1_j6demsf wrote
1 million can barely buy a house....1 million now is what 400k was a decade ago in that regard. You might be able to retire with 1 million, but only if you are older with Medicare, living in a cheap area of the country, 1 million might be enough....maybe.
Currently, a comfortable living and feeling wealthy would need at least 4 million in California. That would be enough of a buffer for living expenses and enough to do travelling here and there and maybe buy a few luxury items.
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Sherifftruman t1_j6dtbxh wrote
2.2 million isn’t even that much. Take a couple, both right around 50. Between a house a decent retirement savings it is quite easy to have accumulated that much or even $3 mil net worth and that’s by no means feeling rich.
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iamr3d88 t1_j6e84vn wrote
Over 20+ years, I you take 4% per year out while making 7-10% on average, your portfolio will grow with inflation. That's not guaranteed, but it pretty much works out that way.
Grinagh t1_j6ebwaq wrote
Agreed but more to the point, the future doesn't look very good considering all things emerging at the same time, robotics, AI, fusion, climate change, inverted population growth.
Already the cracks are appearing, COVID was just the first modern hurdle we faced and like a Fatman trying to launch over it we jammed our balls hard on the hurdle and ate pavement face first.
We are not going to have it any easier as disruptions become a regular way of life leaving billions poor, hungry and dumb. The society that will exist in 2100 will be unimaginable to us despite it only being a lifetime away.
Coronazonewearmask OP t1_j6ednky wrote
I’m talking USD
Skyblacker t1_j6edt8v wrote
There are people in Silicon Valley who have a million dollars who can't afford to buy a house. Hard to feel rich when you rent.
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Climboard t1_j6eg98i wrote
This. Most people with the discipline to reach millionaire status are going worry about cash flow and growing wealth until they hit at least $3M.
ProposalNo377 t1_j6ek6l2 wrote
I got a promotion last year and and making the most $ I ever have at $94k before tax. I can’t afford a house.
Argybargyass t1_j6ek7ii wrote
A million dollars is only low value when on property. All other times its worth a lot for what you can buy with it eg. cars boats etc. The property market and governments have taken us for a ride and created fake shortages to inflate prices. Look around there is still massive amounts of land that can be built upon but we are paying for these tightly held postage stamp blocks of land at a huge premium.
daisy-09010 t1_j6eky57 wrote
More than I’m living off now 😅
Moon-In-Leo t1_j6eprs3 wrote
if you put it in almost any investment except cash you will beat inflation
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Effective-Avocado470 t1_j6euwbs wrote
As a reasonably successful millennial earning close to 6 figures, this makes me feel so poor.
I'm saving and investing in retirement, but it'll not be close to enough even after decades of earnings
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Ok_Present_6508 t1_j6ewino wrote
You guys have bank accounts?
Sherifftruman t1_j6exly3 wrote
I feel you. But Time…is on your side.
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ContactResident9079 t1_j6ez403 wrote
If you’re here looking for solid financial advice I think you know what’s next
BushyOreo t1_j6f1wm5 wrote
I mean, just 1 million is already 50k at 5% interest a year. That's plenty to live off of for a lot of people. It may not give you round the world trips and yacht parties, but most people already live that life and are happy. Now take that same life and remove the work aspect and you are retired
BushyOreo t1_j6f2ywv wrote
Spending 60k/year is a lot. That's roughly 85k/year before tax job. The median income in america is 42k before tax so half that.
A million at 5% interest rate is 50k/year. You can earn more interest off of just 1 million than the average American makes working full time year round
nog642 t1_j6f7w51 wrote
Depends if you own a house or something and that's included in net worth. I don't think owning a 1.4 million dollar house makes you a millionaire, considering you live in it and so don't have the money. I mean you have the option to sell it and move somewhere cheap and be a millionaire I guess, but until you do, you are not a millionaire. Net worth is not a good measure of these things.
nog642 t1_j6f862d wrote
That's a high bar for rich.
Acidelephant t1_j6f9kcx wrote
If you owned it outright, you would be a millionaire tho, just that your net worth is tied up in a non liquid asset.
Billionaires don't hold all their net worth in cash, it's mainly invested in stock and other investments
nog642 t1_j6fasp0 wrote
Yes. That's how net worth works. But it's not that useful. It doesn't fit our notion of a millionaire having a million dollars. When you think of a millionaire you think of having 1 million liquid. I think many people also have a similar mental image of a billionaire, which is a misunderstanding and misconception most of the time.
Effective-Avocado470 t1_j6fd4je wrote
Well sure, except I'll retire into the climate change induced economic collapse of the world order. So I guess my savings won't matter anyway lol
Sherifftruman t1_j6ffigc wrote
Well I’m not saying that doesn’t cross my mind too.
TylerArtx t1_j6fidqx wrote
I think you're doing better than a lot of younger people at your age. So many Americans make way less. In recent years, there was a estimate that about 50% of Americans make about 16 dollars or less an hour. It was only in recent few years that federal jobs are required to pay 15 dollars minimum and there are a lot of civilian jobs where in military bases where the pay was so low. As someone who has witnessed this first handed, these people are like grown adults and even older folks with these jobs.
TheBigMookMan t1_j6fli6s wrote
When you are 21 and healthy, a million bucks well managed is a bankroll that can provide for you through old age. When you are 71 and sick, it's just the co-pay for your medical insurance.
Effective-Avocado470 t1_j6fm4l6 wrote
Absolutely, and that makes me feel terrible. The economy is fucked for working people right now
BreakerSoultaker t1_j6fuhnp wrote
A million isn’t “rich” now. Think about it, to quit work and retire, assuming you live 20 years you need a million dollars and will get about $7K a month.
Daddy616 t1_j6fx0ay wrote
We nEeD tO rAiSe MiNiMuM WaGe...
The super villains at the top refuse to compromise their profit margin.
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grasopper t1_j6g7w6u wrote
You can take the million dollars and move to a developing country and be rich there. That's my plan
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ExNihiloish t1_j6gj2i8 wrote
For us poor people, 1 mil is certainly enough to last a lifetime. I'll die having never earned that much.
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ShredGuru t1_j6h38m6 wrote
Bro, they say millennials are going to need three million is savings just to retire.
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Busy-Kaleidoscope-87 t1_j6ihs0g wrote
Depends on where they are located ig. In places like Cali, that's probably true, but in Ohio (LMAO I live in Ohio joke about it), its still considered a lot of money.
Busy-Kaleidoscope-87 t1_j6ihyeh wrote
Millions of Americans would disagree with you
ovscrider t1_j6iixpm wrote
It's really not rich today for someone to have a mil at say 50
limacharley t1_j6j7sst wrote
Well yeah, you might stretch a million dollars to last a lifetime, but that doesn't make you rich. It just makes you less poor.
ExNihiloish t1_j6j8fl4 wrote
Yeah. The disparity is so great that to us that have lived in and around poverty, 1 mil seems pretty rich. We could support a family of 4-5 for a lifetime. I understand it's not a lot for the middle class.
I think "rich" is subjective - based on perspective.
MechanicalBengal t1_j6jz4b7 wrote
Exactly this. A net worth of $2MM in a HCOL area can be very much a middle class lifestyle, especially if a lot of it is tied up in a house and property taxes kick in.
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