Pyramid of Wealth: Where do you fall?

**Petunia 100** · 08-11-2022, 03:42 PM

I guess I am in "health", as I am still living on my wages and trying to grow my nest egg. Prosperity I assume means living on the money your money is generating?

**QuarterMillionMan** · 08-11-2022, 04:06 PM

You're right Petunia, I have to drop back down to "health" as well. I'm not able to live off passive income and need my 9 to 5 job to survive.

**disneysteve** · 08-11-2022, 04:33 PM

I guess it depends on what Prosperity actually means. If it just means having passive income, then I'd say we're in that category. If it means living off of your passive income, than we're in the Health category.

**ua_guy** · 08-11-2022, 04:49 PM

"Not stressed all the time" ....lol. Well I guess no matter what we make or already have in the pot, that means we haven't achieved #3. We still work for our money and that comes with some very unique modern stressors.

**disneysteve** · 08-11-2022, 05:01 PM

Originally posted by ua_guy View Post

"Not stressed all the time" ....lol. Well I guess no matter what we make or already have in the pot, that means we haven't achieved #3. We still work for our money and that comes with some very unique modern stressors.

I'm assuming that means not stressed about money all the time, as in, "How are we going to pay the bills this month?"

We've got plenty of stress, but that's not where it's coming from thankfully. Although at the moment, having just received my last regular paycheck today, I am a bit stressed about finances. I know intellectually that we've got plenty to cover everything but it'll take a little adjustment period to get used to drawing from our portfolio when we've spent 30+ years building it up.

**plodding_investor** · 08-11-2022, 05:10 PM

3.5 and hoping I don't drop to 1-2 by or during retirement.

**Drake3287** · 08-11-2022, 05:27 PM

I should almost be embarrassed but because I've earned every cent I've made, I'm not. I'm a clear 4 with Prosperity. Unfortunately society almost looks down on people like myself who have led a middle class life style but have saved and invested along the way. No one other than my wife knows our financial situation. As for stress, zero other than typical life worries about health and family.

**kork13** · 08-11-2022, 07:12 PM

We're not quite able to live off of our current pension/rental/investment income... So stage 3/"Health" I guess. But we're close. No mortgage makes that alot easier. We're within 5-6 years of that point right now. Another couple debt-free rental homes, or me starting to earn a pension would be our triggers to get there.

**myrdale** · 08-12-2022, 04:58 AM

I'm going to argue that this system, as presented is flawed. It mixes finance, personal relationships, and health conditions into some sudo-ranking system. Honestly it comes across as a poor attempt of copying the Maslow's Hierarchy of Needs.

What if I am a billionaire with a spiteful exwife, and estranged children? What if I am homeless, but have a situation where all my medical and food needs are met? Or amazing family and good bank account, in good health, but I'm 102.

A more practical example might be a 30-something with a great job and a mortgage and student loan debt. Budgets, and lives well within his means with money in the bank, but still owes $200,000.

My point with each of these examples is they are not simply an "X" on a chart.

I'd also argue that unless we are talking about the percent of people who fall into each category, a pyramid is the wrong shape. A simple rectangular tier list would work. But if we are sticking to triangles, I'd flip it upside down as there is far more to put into the higher tiers.

As to the original question, personally, being debt free, able to save a large portion of my income, a rewarding job, good friends and family, I'd say I am on the line between Health & Prosperity. I don't have any passive income outside of $0.50 interest on bank accounts.

**riverwed070707** · 08-12-2022, 05:53 AM

Another health here I suppose. Last year my rental income matched my w2 income for the first time which was a pretty big milestone, but I can't live on my investments because I wouldn't be able to afford health insurance or continue to save to meet my retirement goals. I did comment recently that its nice to have reached a place where I think a lot less about money and what I'm spending because there isn't a risk of there not being enough.

**bjl584** · 08-12-2022, 06:03 AM

Health Category for me.
I'd like to be in the Prosperity column in the next 5 years or so
Paid off home and some passive income generators will hopefully get me there

**disneysteve** · 08-12-2022, 08:49 AM

Originally posted by myrdale View Post

able to save a large portion of my income

I don't have any passive income outside of $0.50 interest on bank accounts.

I'm curious where you are investing that savings but generating no passive income. Stocks, bonds, mutual funds, ETFs, real estate, etc. all create passive income. Are you putting it all into precious metals and cryptocurrency?

Our portfolio generated about $100,000 in passive income last year.

**QuarterMillionMan** · 08-12-2022, 09:26 AM

At least w/.50 cents in interest income no need to worry about filing taxes on it. I believe $10 is the threshold but correct me if I'm wrong.

**disneysteve** · 08-12-2022, 09:33 AM

Originally posted by QuarterMillionMan View Post

At least w/.50 cents in interest income no need to worry about filing taxes on it. I believe $10 is the threshold but correct me if I'm wrong.

I believe you're right. Under $10 and the institution won't send you a 1099. Of course, all income is reportable, but I don't think you're risking an audit by not reporting 50 cents.

I'm just wondering where he keeps his money and earns no income. I just checked and just our Ally money market has earned $396.15 year to date.

Pyramid of Wealth: Where do you fall?