Is this person rich? What would you do if you had this?

Question

If someone you knew
a) didn't have or want kids
b) owned a home outright (worth not millions, but enough to live off the profits if it had to be sold) in a really affluent area.
c) didn't have to pay property tax on house, insurance on car, or the car they drive (a porsche)
d) didn't have to pay for food or any other daily items.
e) was able to spend $5 or $7,000 on clothes and other gifts.
f) doesn't work at all except volunteer work
g) was able to afford maybe 1 vacation a year ($3,000)
h) no other bills or debt

I know someone like this (not me, I wish!) & she insists she is not rich (because she still has a budget) but she seems pretty rich to me.

This lady is very very smart, she went to an Ivy League school & has a graduate degree also.

what i mean by "not have to pay tax" is that it is already deducted (by her accountant?) from interest from her investments. So she doesn't have to work to pay it, that's what I meant.

btw, she's only 28.

Answer 1

Funny how we look at being rich, in only one way:
material.

It could be the fact that she puts herself on a budget and lives within certain financial discpline, she just does not see her self as rich.

It could be, because she still has other areas in her life in which she wants to grow in, she just doesn't really pay attention to what other people consider rich.

Answer 2

The word "rich" is a bit tricky. It means different things to different people.

I would certainly say that she's financially independent, which is the best that most of us can hope for when it comes to our personal finances.

In fact, I know of a source that basically defines "wealth" as meaning financial independence. That seems about right to me, though I also believe there are other, more important kinds of wealth: peace of mind, relationships, etc.