The mentality of becoming rich

[zeldo]

I read that 10 million dollars is the amount you need to be able to retire and live off the money for the rest of your life. This assumes that you don't buy a Masserati every year and don't lose it all Madoff style.

Of course the problem is that once you reach this number you will not do this you will end up working, because there will always be someone else who has more than you.

[jIM_Ohio]

I read that 10 million dollars is the amount you need to be able to retire and live off the money for the rest of your life. This assumes that you don't buy a Masserati every year and don't lose it all Madoff style.

Of course the problem is that once you reach this number you will not do this you will end up working, because there will always be someone else who has more than you.

This depends on how long retirement lasts, what your expenses are, and how aggressive or conservative you invest the retirement funds.

I can retire on less than 25% of what you said with my mortgage still in existance. If I pay off my mortgage before retirement, its possible I can retire on close to $1 M total.

[disneysteve]

I read that 10 million dollars is the amount you need to be able to retire and live off the money for the rest of your life.

I don't know where you read that. Very few people need anywhere near that amount. The rule of thumb is 25 times your pre-retirement income, so $10 million would be for someone with an income of $400,000/year.

$10 million, even with a conservative draw rate of 3%, would generate $300,000/year. With a national median income of about $50,000, they would need about $1.25 million in retirement savings, not counting any pension or SS benefits.

[nighttimesky]

I'm not sure......this really really depends on one's view of being rich. some always want more.....some are already content......some have nothing and are working hard to get what they want but aren't sure what it is exactly.

[Snodog]

I don't know where you read that.

Probably from an investment firm.

Heck with 10 million I could retire and buy a Maserati EVERY year.

[myrdale]

I don't know that I exactly agree with the author of your book.

I definately believe in goals. I have a white board here next to my desk where I track my mortgage balance and my weight. Every day I look at those numbers and think about ways I can decrease them. So yes I do have something to focus on.

But where my quam comes in is wanting to get rich for "money, riches, houses, or cars." I just feel that wanting to be rich just to have "fancy stuff" is a bit immature. Yes I would love to have a lake house and a boat, or a small air plane. But these are things that I can only justify once I have put myself in a position to be able to aford them once ALL other needs are taken care of. I just don't think I would want to spend my time dwelling on what I do not have.

Most of all once you have worked for 10 years and saved for that shiney new Ferrari, your parking it next to a double wide trailer and your wondering how your going to keep the lights.

I just feel luxury should be a byproduct of work, not the point of it. The point of work should be independently supporting yourself and your family, and then improving / giving to your community what you see fit.

[Staceyy]

I'm reading a book about the mentality, or psychology, of becoming rich, & the author's main point is that a person needs to determine for him/herself exactly & precisely what it is they want, as far as riches/ money/ house(s)/ car(s) or whatever other material things you may want, so the goal is perfectly clear in one's own mind, & then focus all energies & thoughts on obtaining that goal. He states that the clearer the goal is in your own head, & the more of your energy you put toward it, the more likely you are to achieve it, & probably the sooner too.

This makes sense to me, so ... I'd like to try it: But what do I want?? I've always thought the idea of being independently wealthy sounds pretty darn good, but I'm not really sure what that means?? Would $1M in the bank do it? $2M? $5M or $10M? No debt? I think I'm already doing pretty good, but I don't feel independently wealthy. Maybe I just need to think it through more.

What would you focus on if you were to simply define for yourself exactly what you need to feel/ be "rich"?

What is the name of the book and author?