2.5M considered wealthy

I wouldn't consider $2.5 million rich or wealthy tbh. I would consider that as just comfortable. Originally I thought that's $2.5 million per year income but if it's just $2.5 million net worth, it's definitely not rich or wealthy. I would consider $10 million net worth as just reaching the level of being considered wealthy.
 
TheDawn said:
I wouldn't consider $2.5 million rich or wealthy tbh. I would consider that as just comfortable. Originally I thought that's $2.5 million per year income but if it's just $2.5 million net worth, it's definitely not rich or wealthy. I would consider $10 million net worth as just reaching the level of being considered wealthy.
More...

You idiot. Take a year off of buying a $1,000,000 yacht?
 
I remember sitting at a swanky San Francisco bar with a friend, 2 college students with part time jobs, dreaming of what it would be like if we had $1M when we retire.

We still laugh about that era as we aim for $5M before 65!

For me being wealthy is to fly business or 1st class wherever I fly without thinking about cost. I'm definitely not there!
 
Last edited:
I think of wealth in terms of cashflow, not net worth. I consider someone wealthy if they can buy what they want when they want without worry. Everyday is Christmas if they choose. If you have a 500K house and make 300K a year, you can buy whatever you want when you want. I consider this wealthy. If you have a 2M house and an income of 100K you cannot buy whatever you want whenever you want. I wouldn't think this person is as wealthy, although technically their net worth is probably higher. This is just how I look at it. Making the 1% in income is much easier than assets, as assets are handed down and passive income leads the rich to be richer. I have met many house poor people in my life that have amazing cars and house(s). I consider them poorer than someone that has great cash flow. Just my personal perspective.
 
Actuarial_Fun said:
I think of wealth in terms of cashflow, not net worth. I consider someone wealthy if they can buy what they want when they want without worry. Everyday is Christmas if they choose. If you have a 500K house and make 300K a year, you can buy whatever you want when you want. I consider this wealthy. If you have a 2M house and an income of 100K you cannot buy whatever you want whenever you want. I wouldn't think this person is as wealthy, although technically their net worth is probably higher. This is just how I look at it. Making the 1% in income is much easier than assets, as assets are handed down and passive income leads the rich to be richer. I have met many house poor people in my life that have amazing cars and house(s). I consider them poorer than someone that has great cash flow. Just my personal perspective.
More...

Cashflow is much more important than assets. Making $1MM/year as an annuity is wealthier than 10MM in cash now.
 
Actuarial_Fun said:
I think of wealth in terms of cashflow, not net worth. I consider someone wealthy if they can buy what they want when they want without worry. Everyday is Christmas if they choose. If you have a 500K house and make 300K a year, you can buy whatever you want when you want. I consider this wealthy. If you have a 2M house and an income of 100K you cannot buy whatever you want whenever you want. I wouldn't think this person is as wealthy, although technically their net worth is probably higher. This is just how I look at it. Making the 1% in income is much easier than assets, as assets are handed down and passive income leads the rich to be richer. I have met many house poor people in my life that have amazing cars and house(s). I consider them poorer than someone that has great cash flow. Just my personal perspective.
More...

If you have a $2 million house, chances are you won't have a net worth of $2.5 million so you won't be considered wealthy anyway. Net worth is a pretty telling measure of wealth cuz if you just have a pool of money sitting there but no income, then eventually you will be drawing down your pool of money and you will incur debt.
 
You must log in or register to reply here.
Back
Top