Hi everyone,
The “Sick pursue of money” is a very interesting topic, thank you Dr. X . It has certaintly made me think (good for my soul).I did not grow up in Australia, hence as part of the learning journey about my new country Oz, I have a genuine, and probably naive question you may say ….
I understand rich could be a state of mind, how wealthy you are, or the definition of success is very personal & relative, being wealthy does not mean being happy, etc ..I agree to all that.
But usually when we say so and so are rich/wealthy, we have some figures, our own “standard or assumption or definition ” of “being wealthy” .
So if we could talk purely on the $$ front, I am wondering how much $$ ones have to have for YOU to call them wealthy/rich ?
Is it the networth threshold , the cashflow threshold ? the gross income ?
The …debt
? A combination of ….?
Is it the way ones spend money (if you can spend money on what you want all your life, is this wealthy ?)Please express your view , thank you.
Moony
Welcome moony,
I agree that knowing exactly what is meant by “wealthy” is a subjective task – different for each person.
I have never actually sat down and decided exactly what wealthy means for me. however I am willing to have a stab at it now, as it is an interesting topic.“Wealthy” – having a stream of income of over say $100k p.a. after tax for the family. This income can be acheived thru personal exertion, but I do not mean by having a 9 to 5 job. I mean by running your own show and working in it with some flexibility.
“Comfortable” – working within a budget – having a budget that covers everything necessary. Thereby not needing to worry about “unexpected” bills. Also means the occasional impulse purchase is covered. No Surprises.
Looking back at this I think I have offered a definition of an acceptable lifestyle not wealth. It is possible to be wealthy and half kill yourself doing it. That is not my idea of living.
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
I would consider wealthy to be when you have enough passive income to cover all of your living expenses and provide a lifestyle that you desire.
Regards BeanieLive every day like its your last.
Learn how to create enough passive income to retire using shares,property and the internet.
http://www.renovateyourfuture.com1./
Living in a nice house, nice clothes, driving nice cars, the wife does not “go to work” (the feminists please do not jump at my throat I know the housewives also WORK at home !!!) , family has lots of time togerther (seen going out together often….)
All those symptoms would give me the PERCEPTION that they are wealthy. How much money they have or whether they are up to their neck with debts i would not know. THey “look” wealthy though.
Do they think of themselves as being wealthy ? I don’t know.2./ Purely money wise, I would say debt free PPOR, 100K per year passive income, no “bad” debt, but no huge good debt either (ie very low risk investment portfolio).
3./
As for me, I would declare myself wealthy when I could hire helpers to do ALL the housework without feeling guilty [biggrin]I’d suggest that, similar to the common saying “your expenses will rise to meet your income” your personal definition of “wealthy” is actually a moving target – depending on your station in life. Peoples perception of everything is always relative compared to what they know in their little world.
Having been exposed to the Sultan of Brunei and what he is capable of, we good folk in Australia have absolutely no concept of what true wealth really is, and what it can do. Try kicking 350 people and all their luggage all ready for take off, off your plane and leave them all floundering at the airport because you want to go somewhere just at this instant.
Someone with a 100K PPoR with a mortgage on a salary of 25K p.a. would probably consider someone with a 300K PPoR without mortgage on a salary of 40K p.a. wealthy….ad nauseum…and up the food chain you go.
Someone elderly & stressed out at work would probably consider the young surfies at Byron Bay wealthy (time and stress wise).
If you are purely talking dollars, I reckon real wealth is when that wealth transforms into power.
I can remember people saying Frank Packer was wealthy as he was able to pick up the phone and say to the Prime Minister of the day “I need to see you, I’ll be over in your office in an hour.”
Apparently real wealth is exhibited by his son, who has reportedly picked up the phone and said “I need to see you, be in my office in 30 minutes.”
I’ve found there is no point comparing yourselves to others. We are just way too different. Just paddle your own canoe and be happy.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Thanks very much for the responses. I do appreciate your time.
A few forumites mentioned they have “reached financial independence”. Would you care to share what that means ? Does it mean you have secured passive income ? or have enough $$ to live till you die ? or you are yourown boss but still have to work ??
Regards
? A combination of ….?
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