Comments on: What Does It Mean to Be Rich?

By: Juan

Juan — Mon, 10 May 2010 19:36:16 +0000

Hi everybody,
Very interesting comments. In my point of view I think that richness has to do more with a state of consciousness than with the fact of having lots of money in assets. Obviously, there exists a correlation between such state and someone financial condition, because someone’s feeling of being genuinely prosperous and abundant automatically allows the manifestation of what is needed. But the thing is that we were never taught that. All this is intimately related to the state of happiness, fulfilment, health which are elements that allow to live a life in full. If we have the attitude in our life based upon these principles, all the channels will be open to experience in full, which means that if you wish money you will then create the conditions to make it, be it working for someone or for yourself. You will make as much money as you expect within yourself and when you act this way you will surely enjoy it, share it with your beloved ones.

By: Ellen

Ellen — Tue, 04 May 2010 04:18:36 +0000

I’m still stuck on the first part of your post. If you could, you’d really give your kids long-term financial independence? And how do you think they’d end up? Or their kids? I’d much rather give my kids the opportunities to find things they love to do that also bring in some income rather than just money. If I had the income, that would probably mean some travel opportunities, some exploring time, but not “long-term financial independence.”

By: Richard | RichardShelmerdine.com

Richard | RichardShelmerdine.com — Mon, 03 May 2010 14:43:25 +0000

I think that we all have to define what rich means to US so that we don’t just take the default definition given by society which is just “keep making money and retire at 30 and do nothing forever”. We are worth more than this.

By: Matt

Matt — Mon, 03 May 2010 13:17:20 +0000

When I was shortly out of college, I got a free consultation from a financial adviser. While the adviser really wanted to sell me mutual funds, I learned one really interesting thing: he predicted that over the course of a 35-year career, I’d make about five million dollars.

For reference, at the time, I was working as a programmer for a large manufacturing company in a small town in the Midwest, and making about $60k/year. I wasn’t “rich”, but I was certainly comfortable. I had everything I needed.

Since then, I’ve always thought to myself: if I had that five million dollars now, in theory, I could live at my current comfort level without working.

Consider, the 30-year US Treasury rate is currently 4.625%. They are sold in million dollar lots. So one 30-year US Treasury bond will provide over $40k of interest income per year. US Treasury bonds are the most conservative investment you can make; with five million dollars, you could diversify, and easily make over $100k/year in passive income.

I certainly agree with the spirit of Trent’s post; that is, time has more value than money. So, if you have lots of time, you are rich. For those of you who are of the same mindset, I thought you might appreciate some numbers.

And for what it’s worth, if I magically received a five million dollar windfall, I would certainly splurge a little bit, but the overwhelming majority would be invested to maximize passive income. In other words, my biggest purchase would be *retirement*.

By: Dena

Dena — Mon, 03 May 2010 01:34:51 +0000

What an absolutely beautiful baby boy!Matthew is a gorgeous little thing.You and your family are truly blessed.Best wishes……Dena

By: Jennifer

Jennifer — Sun, 02 May 2010 18:30:26 +0000

If I thought about what it would take to be rich, that would take millions and would include nice cars and a bigger house and traveling likely mostly to visit relatives that I don’t get to see as often as I’d like. And enough money to travel when my kids are older and start a bakery 10 or so years down the line. If I’m just talking about a rich life, I think I basically have that now. If someone handed me a check to pay off my credit card balances and my student loans that would likely clear up enough cash flow to meet the few desires I have now would be nicer (more money to retirement, college savings & insurance or possibly a car that can hold people in addition to the two car seats in the back).

By: Terri T

Terri T — Sun, 02 May 2010 18:24:06 +0000

I agree that rich does not translate into having mountains of money. Depending on what is most important to an individual, a poor person could indeed view their self as being rich. In any case, loving what life has given you certainly puts one on the road to riches.

By: lynne

lynne — Sun, 02 May 2010 02:43:15 +0000

What does it take to be rich? For me, enough to do some traveling, take care of monthly expenses, not worry about the car breaking down, a leaking roof, dental work, etc. I’d want to help my adult children to finally buy homes of their own, and make sure my grandkids could go to college. There are lots of charities I’d love to sponsor if I had the funds. If I won the lottery tomorrow would I quit my job? Maybe, maybe not. I really like what I do, but at my age there is so much I have wanted to do and couldn’t afford, that I would probably take a leave of absence, then return to work.

By: AniVee

AniVee — Sat, 01 May 2010 23:45:27 +0000

I’m with #2 Tyler @ Dividendmoney on this one – To have enough to invest and get back steady income sufficient to spend most of your time doing the things you love — in my case, travel, in other peoples’ perhaps charitable works or spending time with loved ones, or writing the Great American Novel, or painting watercolors —
THAT’s being rich.

As Peter Lynch once said, “on their deathbeds, no body says, “gee, I wish I had spent more time at the office …. “

By: Rozann

Rozann — Sat, 01 May 2010 22:42:42 +0000

To me rich means having no debt, so that the money I do earn is MINE, and not someone else. I have always wanted to have enough money to help others, get started in a business, pursue something to do with the arts, or get a needed education. Our family is working to that end now. Someday!

By: triLcat

triLcat — Sat, 01 May 2010 20:30:31 +0000

I know people who travel several times a year to exotic places, eat out a few times a week (at cafes, nothing fancy), have no debt, have savings, and stable income without working. They are able to help their children and grandchildren with expenses. They have a 10-year-old car and a house that isn’t huge. Are they rich? I think so. They may not have millions in the bank, but they live a fantastic, full life with no financial worries and are even able to help others.

By: John

John — Sat, 01 May 2010 18:14:26 +0000

Being rich means being able to do what you want to do, when you want to do it. Wealth and Abundance encompass much more than money.

By: Janie Riddle

Janie Riddle — Sat, 01 May 2010 16:11:38 +0000

How rich are you and your family with a beautiful baby. I am rich every day I can get out of bed and walk in the mornig. Thanks for reminding me.

By: Syble Solomon

Syble Solomon — Sat, 01 May 2010 14:44:19 +0000

Congratulations on Matthew. What a beautiful little boy!

When I speak about habits and attitudes related to money I frequently ask people to define “rich” and “poor”–related to money. When they were young did they think they were rich or poor relative to others? What led them to those conclusions? Who did they consider rich or poor? What attitudes did their parents have? Did they speak about “rich Uncle Joe” with admiration for his hard work or did they accompany his name with being dishonest, lucky or comments like–sure he’s rich, but he never does anything to help us out. When they talked about someone being “poor” did they associate it with bad luck, bad choices, being irresponsible, being admirable, being a burden? Did they feel they wanted to or needed to help that purpose and what was their attitude about that?

I totally agree with all the comments that how we define ourselves in terms of rich or poor is completely unrelated to the amount of money we have, but is our perception.

By: Matthew

Matthew — Sat, 01 May 2010 14:20:30 +0000

Well my attitude toward what it meant to be “rich” changed dramatically after I read the Millionaire next door… The Average Millionaire lives a very sensible almost frugal life, it’s not about bling, bling and conspicous consumption.

While as a personal goal. 2 million is my retirement target, I began to feel “rich” in 995 when I became debt free, and my income always exceeded my expenses, I had the “choice” then the “rich” have.

By: Lance Newton

Lance Newton — Sat, 01 May 2010 14:16:36 +0000

Lance@selfdirectioncentral.com
I am glad that you had the opportunity to do some impromptu research on what amount of money it takes to feel rich. My experience with investors is similar to yours. I would also note that many people who have been given stacks of money (lottery winners and recipients of homemakovers) end up broke after a remarkably short time. I have often felt that it made no sense to take a broke person and give them a ultra-luxurious house (many strip the equity and spend it as fast as they can, then can’t make the payments) as a solution to their needs or even as a reward for good deeds in the community especially if no effort is made to teach them how to use money.

By: steven@hundredgoals.com

steven@hundredgoals.com — Sat, 01 May 2010 13:05:50 +0000

I suppose I will be arrogant and absurd then since I prefer to define rich differently than you. This isn’t to say I am unaware of the other definition of rich in terms of money, just that I will not define the richness of my life or how rich I am in that way. It is exactly this attitude about money that I want to avoid in my own life. Money defines us. It is a measure of success for so many people and unless one has a lot of money, they cannot be satisfied in their lives.

Why not look at it through another lens and see that richness may not have anything to do whatsoever with dollar bills but instead with the quality of life you are living and the amount of satisfaction within it. Be happy with what you have rather than focusing on what is “missing”.

I’m sure there are people out there with money up to their eyeballs but are not rich. Even if you focus solely on the monetary definition, rich is about perception and situation and means different things for different people. A million dollars could be enough to be “rich” for one person but hardly enough to survive on for another.

The title of this article is not, What is the Definition of Rich? It is, “What Does it MEAN to be Rich?” You define it with money, I define it by quality of life.

By: azz

azz — Sat, 01 May 2010 12:56:01 +0000

Have to agree with Mark! Why take it so litteraly, instead of just discussing it, pardon my bad dinglish :)

By: Brad

Brad — Sat, 01 May 2010 10:36:18 +0000

I have often chosen career/happiness over salary. One of the times I enjoyed most was when I coached swimming from ’81 – ’86. Working with the kids was wonderful! My financial mistake was not starting to save even with a meager salary of $14,000 per year. If I had started saving then, I would be financially rich today. I tell my children the same story.

But I certainly enjoy some rich memories – and it’s funny to reconnect with the “kids” on Facebook today; especially when someone posts a picture from back then….

By: Mark

Mark — Sat, 01 May 2010 09:47:38 +0000

Kevin:

Arrogant and absurd? Really? Wow what a pathetic narrow view of the world you have. Rich is not defined “only” in monetary terms. It has many meanings. When you say a Chocolate milk shake is “rich”. Does that mean the drink has lots of money? Come on get off of your high horse.