How do you define rich?

[tripods68]

Are you just getting by simply put living "paycheck to paycheck"?

Or,

Do you consider yourself rich, you can pretty much buy things without financial consequences?

I define "poor" who is living paycheck to paycheck, no retirement savings, no health care. Someone who can't afford basic things in life. I define "rich" who has at least 3 million in liquid asset exclude retirement accounts.

What benchmark do you use to gauge yourself where in the spectrum do you belong?

[batman]

if i had $100,000 I would consider myself "rich". lol

[Coleroo]

To me...

Rich: Being able to live life in such a way that you are never seriously obligated to another (debt) and you can choose to work...or not...without it affecting your preferred standard of living.

I guess one's level of richness then would be based upon the standard of living one wants to enjoy.

[LivingAlmostLarge]

paycheck to paycheck because until I'm completely financially independent where I don't need a paycheck to live, well it doesn't matter how much savings I have, I could still go broke if i didn't find a job again.

[Broken Arrow]

I think this is going to be an interesting thread, because in the end, I think we all quantify our own definitions of "rich".

I have a friend who would say he's rich if he is able to get his car fixed and eat at his favorite diner. My goals are apparently a bit loftier. For example, because I'm still not able to afford the kind of condo I want, I don't feel rich. In fact, I don't think I would feel rich even if I am a millionaire right now (though I wouldn't turn that down ).

I have an idea of how much I need to get through the rest of my life, and I although I am trying the best I can, I am nowhere near that mark. So... I don't feel rich. But that's just me. Others may feel differently, and I don't think there's anything wrong with that.

[Ima saver]

I feel comfortable, but certainly not rich. I would think you could live very comfortably off the interest of two million dollars!

[bjl584]

I would have to say that "rich" is the point that one achieves total financial independance. That point in time when your assets and investments produce enough cash flow and interest as to maintain your lifestyle without having to consider the amount of income that you earn from a job. This amount is different for different people. If someone is content to live a frugal life and do without a lot of material possessions, then this point will be low. Conversely, someone that enjoys the "finer things" will obviously need a much larger amount of assets to maintain their way of life. By the way, I'm not there yet.....

[disneysteve]

I think we are all rich. We have homes. We have computers and internet access. We have TVs, telephones, microwave ovens, cars, decent clothing, access to quality medical care, most of us here have jobs and are in at least reasonably good health. I don't think "rich" has a dollar amount associated with it.

[Gruntina]

Originally Posted by disneysteve

I think we are all rich. We have homes. We have computers and internet access. We have TVs, telephones, microwave ovens, cars, decent clothing, access to quality medical care, most of us here have jobs and are in at least reasonably good health. I don't think "rich" has a dollar amount associated with it.

I am with disneysteve! I think it is very hard to be poor in a sense where you cannot afford to have shelter and daily food. But on the other hand, many are not rich compared to American Standards.

I think people of all kind of income can live from paycheck to paycheck just from having poor money management or do not have the mindset of saving and keep spending.

If your income can not meet the very basic needs of shelter and food, then there is a problem there.

I am able to live on 70 percent, saving 20% and tithing 10%. Many people think that I must be doing well if I can do that. Reality is that I made it my commitment but as far as my 70%, it isn’t much to go very far in a high cost of living. I am pretty sure there are those who do not know me well at work and some friends think I am broke all the time because I do not go with them to fancy restaurants for lunch or go on latte runs. Compared to many, I do not feel rich but in truth I am rich to have all that I need taken care of and still have my freedom to do what I want to do today.

[jIM_Ohio]

Rich to me is financial independance.

[disneysteve]

A few of you have said "financial independence" but how do you define that? Does it mean not having to work for income? What about if you receive a pension or Social Security? Are all retirees who are living on SS and pension plus savings rich?

[jIM_Ohio]

If the SS and pensions allow a person to maintain their standard of living, then they are financially independant and therefore rich.

I think it is possible a pension makes someone financially independant- my father has a pension and is probably making more in retirement than he did when working.

I doubt SS will make anyone financially independant by itself.

I plan to be financially independant well before SS age. I might be financially independant before my kids leave high school (17 years to go).

[Caoineag]

I like the financial independence definition but have got to say that I feel rich in comparison to my past.

[Duchesse]

A TIGHTWAD PARABLE

The philosoper Diogenes was eating bread and lentils for supper. He was seen by the philosopher Aristippus, who lived comfortably by flattering the king. said Aristippus. "If you would learn to be subservient to the king you would not have to live on lentils."
Said Diogenes. "Learn to live on lentils and you will not have to be subservient to the king."
The Song of the Bird by Anthony de Mello


Rich or financial independence is a state of mind. If your income maintains the standard of living that you are happy/content with then you are rich.

To with the Joneses. Keep up with yourself.

[Ima saver]

Originally Posted by Duchesse

A TIGHTWAD PARABLE

The philosoper Diogenes was eating bread and lentils for supper. He was seen by the philosopher Aristippus, who lived comfortably by flattering the king. said Aristippus. "If you would learn to be subservient to the king you would not have to live on lentils."
Said Diogenes. "Learn to live on lentils and you will not have to be subservient to the king."
The Song of the Bird by Anthony de Mello


Rich or financial independence is a state of mind. If your income maintains the standard of living that you are happy/content with then you are rich.

To with the Joneses. Keep up with yourself.

I like that!! We are all rich!!

[Broken Arrow]

Diogenes is by far my favorite amongst all the Greek philosophers.

[tripods68]

DS - Here's what I came up with in defining "RICH" or "POOR".

I defined "RICH" in 4 category: Personal Finance, Family, Jobs, and Personal Satisfaction.

There are different answers to RICH and POOR by definitions. So I came up with 4 possible answers: Poor, Somewhat Poor, Somewhat Rich, Rich. Each answer is assign with a point system.

There is no right or wrong answer. It's all subjective as it applies to you and your family as a whole.

Poor = 1 pt
Somewhat Poor = 2 pt
Somewhat Rich = 3 pt
Rich = 4

Add all the points. For example, if you score 5 you are Poor or vice versa.

1 to 5 pts = Poor Rating
6 to 10 pts = Somewhat Poor
11 to 15 pts = Somewhat Rich
16+ = RICH


Personal finance - Somewhat Rich (3 pt)

We still have car payment and 2nd mortgage to pay off When those two are fully paid off we should be able to save a lot more towards retirement. Most important we have a pretty good jobs with excellent benefits + pension.

Family - Rich (4 pts)

We do have many family activities together almost every week not just on special occasions like birthdays and vacations. Our kid's smile what brings us to life.

Jobs = Rich (4 pts)

Both our jobs provide us with flexible schedule. This allows us to spend quality time. I'm always home by 4 PM every day. Making a higher salary takes is not important even though our combined income is mid $150K this year. But that's a bonus.

Personal Satisfaction - Somewhat Poor (2 pts)

My goal is to lose 40 to 50 pounds with 30 BMI. I also take BP medication. DW and I made a pack few months ago to start going to the gym 4 times a week. I've been consistent in the past months so far my stamina is improviing, a lot more work to do.

My overall score is 13. That puts in Somewhat Rich category. This gives me a better overall picture of where we are today.

[glock35ipsc]

I prefer to equate "rich" with my life situation, and "wealth' with my financial situation.

I feel rich because I have a great life, wife and kids. There is an abundance of love and laughter in our family. We play together, we stay together. There is nothing else I could possible want in my life right now.

On the other hand, when my investments make more than I do, I will consider myself wealthy.

And I don't usually equate wealth to retirement. Retirement to some is when you have enough money to quit your job for good. Retirement to me means being able to do what ever I want to do, be it RV'ing full time, or working part-time doing something I love because I want to do it not because I have to.

[disneysteve]

Originally Posted by glock35ipsc

I prefer to equate "rich" with my life situation, and "wealth' with my financial situation.

On the other hand, when my investments make more than I do, I will consider myself wealthy.

And I don't usually equate wealth to retirement. Retirement to some is when you have enough money to quit your job for good. Retirement to me means being able to do what ever I want to do, be it RV'ing full time, or working part-time doing something I love because I want to do it not because I have to.

I agree. "Rich" isn't about money.

I also agree about retirement. When my investments (plus SS possibly) generate as much or more income than my job, I will retire. That doesn't rule out the possibility of working for pay after that time, but it will be on my terms at something that I enjoy and that leaves me a flexible enough schedule to do whatever else I choose to do.

[PrincessPerky]

I define rich lots of different ways..the first: I'm rich

Most of the rest are in my blog