2007-01-03 18:07:38 · 10 answers · asked by D.A.L. 2 in Business & Finance ➔ Personal Finance
Being rich is relative. From the above everyone has a different opnion on the figure. As a dollar figure cannot be determined, one has to use another metric that has a correlation to dollars: time.
Wealth in essence can be defined as to how you can live on your savings if all active income were cut off. If you are truly rich your passive income exceeds your expenses. Your wealth is infinite. The problem is most people spend more than they earn. When one reaches financial freedom, money becomes a game. One starts playing the money game to win as opposed "not to lose". At this point wealth really takes off.
From the studies of millionaires from the book "The Millionaire Next Door" the formula reads:
net worth (excl inheritance) = age x gross annual income / 10
For example:
Age: 50
Annual income: $200 000
To be deemed as the top 3% of the country you need to have at least a networth of $1 000 000 by the time you reach 50 in todays dollars.
2007-01-03 19:01:24 · answer #1 · answered by KR 2 · 0⤊ 0⤋
It cannot me measured in absolute terms. It depends on what is your own definition of richness and also others's definition, who are considering you as rich. You might be considered rich if you have $ 1 million, however, compared to the filthy rich folks, you are nowhere.
It is better you decide yourself, where you want to place yourself.
2007-01-03 20:13:31 · answer #2 · answered by apollo 2 · 0⤊ 0⤋
Over 1 million in the bank with more money continually coming in
2007-01-03 18:10:23 · answer #3 · answered by yahoooooooooo 3 · 0⤊ 0⤋
it's depend on your needs, for example if your need is limited then may be 20 thounthand Dollar make you rich ,and if you have unlimited needs and want the palace and the farm and the plane ,20 million dollards will not make you rich.
It's depend on you my friend
2007-01-03 21:24:04 · answer #4 · answered by hanyyousri 1 · 0⤊ 0⤋
1 million is about the right amount
2007-01-03 18:13:04 · answer #5 · answered by Ja S 2 · 0⤊ 0⤋
when u spend ur money like any thing...... with every thing n still u find a bulk of money with u .....n u realy don't know where to spend then u considered rish ;)
2007-01-03 18:33:53 · answer #6 · answered by Mani M 1 · 0⤊ 1⤋
Enough so money doesn't matter.
2007-01-03 20:11:38 · answer #7 · answered by bezelthai 2 · 0⤊ 0⤋
a lot
2007-01-03 18:10:04 · answer #8 · answered by ___ 5 · 0⤊ 0⤋
about 1.5 mil
2007-01-03 18:11:16 · answer #9 · answered by kenn g 1 · 0⤊ 0⤋
if you have to ask...........you ain't there......yet!
2007-01-03 18:14:33 · answer #10 · answered by madmilker 3 · 0⤊ 0⤋