Having everything paid for that meets your standard of living (house, vehicle, ect ...), no debt that isn't giving you direct returns, several years of reserves in liquid assets and investments that are returning passive income that meets your year to year standard of living. There are lots of people who have big houses and luxurious toys who are living month to month. Look no further than TF. He can barely pay his employees salaries and releases his best assets from their contracts to save a few million.
I really just think "Financially independent, never have to work again" is enough and then from there - with enough money you can aspire to reach further up the chart if you want. But when I mean financially independent - it means you have enough FU money that you have income coming in from various sources and are financially set with owning properties etc. I don't mean financially independent and living in a tent - unless you really like camping, haha
Roof over you head, air conditioning, working car, three meals a day There are plenty of people who have this, yet aren't wealthy Luxury car, latest iPhone, massive top-brand TV All can be purchased by going into debt. And, sadly, there are a LOT of Americans who will go into debt for this crap just to present the image of being rich, when they're really in financial trouble Own a house See #1 above Own a McMansion and a vacation house New socks every day and a Lambo in the gatehouse see #2 above Financially independent, never have to work again Financially, I don't HAVE to work but it's a better financial decision for me to work than it is for me to stay at home and pay for my kid's schooling/college. There are many others who are also like this. Private Jet, houses in different countries Yup - only very rich people can do this Drugs, rock 'n' roll, bad ass Vegas hoes, Late-night booty calls, shiny disco balls.. See #2 above Buy politicians to further your agenda Private island, dress like Dr. Evil, hunt the most dangerous game... Yup - only very rich people can do this There are quite a lot of people who are financially rich (millions) but drive a humble car (cars are a terrible investment, unless they're a collector car), live in a medium-size house (reducing property tax), continue to work (increasing revenue while investing), and live normal lives. The "millionaire next door" crowd.
Doing okay is having a car, and a home with AC. Doing better than most is owning a house, having long term job security, having multiple cars and the ability to vacation sometimes. Being comfortable is the ability to never have to work again, even if there are some reasonable sacrifices. The rich can stop working and it will not severely impact their lifestyle. The uber rich are buying large amounts of real estate, assets and also can impact public policy. You can yo yo up and down on this list somewhat. I have been at the "comfortable" stage before deciding to sacrifice to keep all my employees paid for all of COVID. Now I am at the "doing better than most" point and honestly no longer have the fire in my belly to get to the higher rungs.
Assets - liabilities = 1 million. Easier than most people think if you don't have any liabilities (debt).
You can only work so much to move up in the first few stages Nook mentioned. To go from rich to uber takes generational wealth or a combination of hard work and extreme luck to maybe provide your great great great grandkids the chance at moving into the highest stage. I'll take feeling rich for 48 hours and go with hookers and coke please.
To buy a lot, tear down the trap house on it and then spend another million to build a normal house until you can save for your "dream" house!
A sustainable net worth over 10 million I’d consider on the border of being “baby rich”, in the Houston area. Depends on the household size / dependents. There’s tons of factors. Top 1% household net worth is about 11-12 million I think. Now guys like John Wall and Ryan Anderson, those guys are loaded!
Now for my corny but true answer A healthy person who’s content with their life, and has good relationships with loved ones.
if you have basics knocked out and can save anything at all at the end of the month, you're historically knocking it out of the park.
Strangely there are levels all the way from bezos and carlos slim down to the people living in mud huts in india and africa. I do recommend folks see how some in india got it and know they are VERY lucky. Having crappy parents and them being terrible with decisions is lame and requires some boot strappy.. even in usa but go live in a hut in india for one night and call me back. There is millions like harden then he looks poor next to fern t***. I heard somewhere if you are a billionaire you didnt earn it , you "took" it... To that extent harden "earned" it? I was in monaco feeling generally bad ass when a mega yacht with belly dancers rolled in.sheikhs of some kind...umm ok yeah I accept it...im not "rich" Enjoy it while you got it Smoke em if you got em
Not sure about net worth. But annual income to be considered 1% in Houston is 450k. To be considered “rich” I believe is top 10% is annual income of 118k
