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A funny thing is that as I start to earn more, my definition always creeps upwards to quite beyond where I am today.
For example, I’m already making $200k/yr at 25. 99% of people (including college me) would call that rich, and I think it would be silly to disagree. However, my definition of “rich” would be >$10M net worth
The psychology of the hedonic treadmill…
Same. And also the more career success I have, the more successful people I’m exposed to. So the whole bubble I exist in shifts and I never move beyond the middle of my own pack.
Chief
Okay, I like my anonymity so I’ll share. Earlier in my career I was in a different industry. When I was 19 years old, I was making about $320-390k per quarter. Thankfully, I had wonderful parents who helped me budget and live off about $20k a quarter.
Our run lasted about four years, from 2005-2009. In that time I amassed about $6.2M. I bought my house and set up a trust. Right now my annuities from the investments pay me about $135k a year.
If I never worked again, I’d be fine. But I work a full time job, and I love that most of my coworkers have no idea my early career was totally different.
Wealthy is perspective. It’s not working and your money paying you enough to live.
Yeah just because that is the only way I could think someone would make such money at a young age and stop to go to industry. Like if it was because of your parents business which some people I know did when they were young then you would have just stayed to get their company when they retired
Congrats to you on your early success by the way and I hope you have continued success now in industry
It is great that your parents stopped any chance of lifestyle creep and taught you wealth preservation at that young age. I owe it to my parents also since when I was making just $100k starting when I was 25 I got a fun car for $400mo and stuff and my parents scolded me for not being able to save and invest 75% or more of my take home and that contributed more than anything to my wealth building as well as discipline to strategically spend
Chief
It’s Saturday night, bruh…
Save the di*k measuring contest for the weekdays
There is always someone like sm1!! Lol
Making over 200k I’d say would do it for me, between 100-200 is well off, 60-100 is comfortable, under 60 is potentially struggling (depending on age/situation)
I’m with D1. At 28, I’m at about my dad’s salary when he retired, and he raised 4 kids. I feel extremely lucky to be making six figures, which as BCG2 notes is well above the mean/medium US income.
Chief
25x annual spending = financially independent = rich
Rich = you could stop going to work and live off your investments if you wanted to
Agreed. "Rich" is not having to work for money again, which is freedom, which is priceless... (oh and for everything else, there is Mastercard)
I like to think of being rich as being free to do whatever you like without working for money specifically
Networth is a poor measure by itself without also quantifying things like expenses and time left to live
The long held belief in consulting was that if you retired at 60 with 10M networth , you are good . Now with inflation heading up , people living longer etc - perhaps 15M is the equivalent number
But then remember - if you don't spend very much , you also don't need as much net worth
Damn the hobos on my block r winning at life 🏆
It depends.
A) I am a nerd. Gotta own it. 🤓
B) Fine. My arbitrary "line" is $11.9M.
One million pesos
That's too low
Chief
5M net worth
This
250k is it. 200k is the new 100k that we all shot for in the 90s. A house and F150 are pretty much double what they were in the early mid 2000s.
Most folks here wont get to $5M
That's a bold statement.
When they have their own helicopter.
Chief
When you have what’s called ‘fu money’
Rising Star
$4M + house paid off
Chief
It’s about income too. If you have high net worth but are burning through it then you are still white trash
MCK1 kind of touched on a good thumb rule. So if your monthly expenses are between $15-20K today, then having $4.5-6MM net worth would be comfortable enough to maintain your current standard of living. So the figure of around $5M would work for most families (4 members) is most major cities (excluding maybe batshit crazy expensive places like SFO or NYC).
About $12M with about 40 years left to live.
$1-2M house
$6-8M in savings (150k in annual spend + account for inflation)
$1M medical expenses reserves
You could all that and more with between 6 and 8. Find a stable 5% return in investment and live off the return. No need to destroy your principle and you could leave wealth for your kids (assuming).
Probably $10-15m+. Feels like a point that you'd comfortably be able to do most things in life without too much double guessing
Pro
25-30m+ NW
When you can do what you want with your 'time' and not what you have to do, you are rich.