At what point are you wealthy?
Nelson from FU says point blank that Wealth = Money, and he hates it when people twist the definition to include having a great life, friends and so on.
I agree and partly disagree because I am someone who believes that although wealth equals money, you don’t necessarily need to have it to be happy.
I don’t assume that everyone needs to be wealthy to be happy.
Still, he brought up an interesting point I’d like to go over:
At what point are you “wealthy”?
If you have $100,000 in India/Or Some Third World Country, you’re filthy rich because you can live like a queen for $10K a year or less.
If you have $100,000 in NYC/L.A./Some Expensive Place, you’re part of the working poor (being facetious here, but that’s what everyone seems to believe).
In addition, it depends on factors like your age and lifestyle.
If you’re a baby with a trust fund of a quarter of a million ready to do some serious compounding interest for the next 80+ years of your life, you’re wealthy, but if you are a senior citizen about to retire with only a quarter of a million to draw upon, you aren’t.
Then lifestyle — if you are someone who lives happily on $20,000 a year, doesn’t really see or feel the need to own a car, let alone a fancy one, or a huge house, and are content to do so, you will be wealthy on your own terms with a lot less.
Conversely, someone who lives comfortably and happily on $60,000 a year, with all the luxurious goods of life at her disposal will need more money to be wealthy.
At this point, all we have to go on are net worth benchmarks, really, based on age and income, but it doesn’t take into account your lifestyle or goals.
DO I FEEL WEALTHY?
Currently I don’t feel wealthy. I know, it sounds ridiculous considering my position, but I don’t.
I feel comfortable.
…but not wealthy because I have been living off this reserve for a few years and I need to work to bring in more income so that my net worth stops stalling at the $200,000 mark.
WHEN WILL I FEEL WEALTHY?
When I can:
- Take annual trips of $10,000 – $20,000 for 3-6 months of the year and travel
- Buy anything I want (within reason) without having to think about its cost and my budget
- Not have to worry about getting another contract soon to continue paying for my life
I have the first two pretty much covered – I can take trips and buy what I want within reason without really freaking out, but #3? Still elusive.
I am still having to hunt down for work to pay for my life, and until I can say that I really don’t need to work or take another contract again until I am 100, I am not wealthy.
The thing about money is that it’s tricky — it can be good and it can be bad, depending on how you use and look at it.
My uncle once told me:
With money, a lot is good, more is better and too much is never enough.
Truer words were never said.
WHEN WILL YOU FEEL WEALTHY?