Define rich

[MagisterCultuum]

It depends where one lives, but I'd say $2 million makes one monetarily wealthy in almost any locale.


I'd say those are rich whose means exceed their desires. This state is probably impossible to attain my accumulating wealth rather than limiting greed. That means the super wealthy tend to be poor.

 

[luiz]

In Brazil one is considered rich if he lives in a household where the per capita income is superior to R$ 3,500 per month (~2050 USD per month). That's the official definition, but most people living in such households would not actually be considered rich. One thing is certain, though: most middle class americans would be considered rich here.

 

[Desmond Hawkins]

In Brazil one is considered rich if he lives in a household where the per capita income is superior to R$ 3,500 per month (~2050 USD per month). That's the official definition, but most people living in such households would not actually be considered rich. One thing is certain, though: most middle class americans would be considered rich here.

By lifestyle, or simply talking about how far US dollars go in Brazil? The latter isn't very meaningful.

 

[luiz]

By lifestyle, or simply talking about how far US dollars go in Brazil? The latter isn't very meaningful.

Lifestyle, of course. Your typicall middle class american (outside of NYC) lives in a comfortable and fairly big house, owns more than one car and has all sorts of electronic stuff (his kids own laptops and Iphones and etc), and so on and so forth. Not to mention that in many ways a dollar goes further in the US than here (cars and electronics are cheaper, as are energy, telephone bills and many other things. Housing, food and healthcare are more expensive, though).

 

[LuckyAC]

My parents are somewhere between 2 and 5 (probably around $4 million), which I wouldn't consider rich where they live (in Silicon Valley). The value of their mortgage-free residence alone is about $2 million, and it is no mansion. But that's one of the most expensive, highest-income places in the world - certainly in Alabama or Sierra Leone, that would qualify/.

 

[JerichoHill]

Comparative to most of the world, a middle class family in America is rich.

In America, they're considered middle class.

So first, some perspective. When someone has needs that are not fulfilled (food, shelter, clothing), anyone who meets needs is rich.

Okay, so that's nice. But what about US Rich?

Well, while not a perfect proxy (some rich households have no income, they are retired), household income might have some decent traction.

http://en.wikipedia.org/wiki/Household_income_in_the_United_States

I'll plunk myself on this chart. My wife and I are right at the cusp of the very last category. So our income is greater than about 98% of all households in the US.

It would be nice to adjust that for cost of living differences. 240K in Washington DC is not 240K in Atlanta or 240K in Omaha.

You certainly would not see my wife and I considered rich by strangers who might see us passing. We drive a Rav4. It's scratched. It's a few years old. Obviously used. Or we're on scooters or bicycles. Not. Rich. We live in 1/2 of a duplex that we own (well we own more of it than the bank). We shop at Costco. There's plenty of folks with enough to "live richly" but who do not (most people who "live" a rich lifestyle are not rich, at least, not for long.

So really, think about what rich really means.

I would say "rich" would be some amount of income and assets such that one can live where one wants to live, do the things one wants to do, work how one wants to work. That's different for everyone.

 

[luiz]

I would say "rich" would be some amount of income and assets such that one can live where one wants to live, do the things one wants to do, work how one wants to work. That's different for everyone.

And that probably only applies to about 0.1% of the population, so not a very good measure IMO.
Most people I consider rich are forced to live in places that are not their top choice, do jobs that they may be tired of or dislike entirely, and not do a lot of stuff they would like to do.

 

[Cheezy the Wiz]

I don't have the book with me so I can't give a direct quote, but in Letters from a Stoic Seneca essentially argues that a man is rich when he is satisfied with what he has, and poor if he desires more than what he has. So a person with lots of wealth can be either rich or poor, just as a homeless man can be rich or poor; it is merely a question of mindset.

 

[Earthling]

A million US dollars, not tied up in housing/health/other living investments (though the OP seems to be clear), is easily enough to make a person rich. The average person could live rather well off of just the interest on that sum.

 

[gangleri2001]

A rich person is someone who has not to care about suffering misery unless he or she does stupid things with his/her money.

 

[Bill3000]

And that probably only applies to about 0.1% of the population, so not a very good measure IMO.

Top 0.1% income was $1.6 million in 2005 in the United States, FYI.

 

[MagisterCultuum]

I don't have the book with me so I can't give a direct quote, but in Letters from a Stoic Seneca essentially argues that a man is rich when he is satisfied with what he has, and poor if he desires more than what he has. So a person with lots of wealth can be either rich or poor, just as a homeless man can be rich or poor; it is merely a question of mindset.

That is pretty much what I said.

 

[JollyRoger]

Someone able to pay my hourly rate without blinking.

 

[Huayna Capac357]

This. I'm quite poor.

In monetary terms, I reckon if you have 1 million USD + you're pretty rich.

At least you have the love of random strangers

EDIT: $1 mil sounds good.

 

[Karalysia]

People who make $250,000 a year.

 

[luiz]

Top 0.1% income was $1.6 million in 2005 in the United States, FYI.

And I suppose you really have to make that much, over a certain period, to be able to live life exactly like you want (as in being able to live wherever you please, only work when and as much as you please, and generally never have to worry about anything financial). In other words, you have to be uber rich, not just regular rich.

 

[amadeus]

You suck at finance. No one with $1mill in the bank lives on the principle.

Perhaps the insincerity was too subtle? My whole point is that I find using this arbitrary definition of "rich" to penalize people to be ridiculous... adding taxes on top of those that already pay a majority of taxes in our countries is already silly populist rhetoric and we need to look no further than the present administration to see it in use.

 

[JerichoHill]

And I suppose you really have to make that much, over a certain period, to be able to live life exactly like you want (as in being able to live wherever you please, only work when and as much as you please, and generally never have to worry about anything financial). In other words, you have to be uber rich, not just regular rich.

I disagree. I think within the top 2% you can do it, in the US. I am. Not that tough...

 

[Cutlass]

Perhaps the insincerity was too subtle? My whole point is that I find using this arbitrary definition of "rich" to penalize people to be ridiculous... adding taxes on top of those that already pay a majority of taxes in our countries is already silly populist rhetoric and we need to look no further than the present administration to see it in use.

Why do you hate TANSTAAFL?

 

[Whomp]

Having the love of friends and family.

This is the best answer for a life lived richly.

$1 million in savings can reasonably be expected to generate $50,000 in income by itself every year.

I'd say that is rich.

$50k a year would put you in the 2nd lowest tax bracket in the US. Many would not consider that rich at all. Second of all, doing a Monte Carlo simulation would show 4% is a safe withdrawal rate at ~90% probability for 30 years. To be in the top 25% of income earners that would require about $1.675 million.

I would say rich, monetarily, is living a lifestyle you are accustomed to and maintaining it.