how much money do you need to be considered rich?
by - Thursday, January 1, 1970 at 12:00 AM
Suppose enough to be able to indulge and survive around here without goin into debt, though in hindsight that also sounds like the bare minimum of existin
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couple hundred thousand spare
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I'd say the day you can stop working altogether and just coast off passive income to pay bills/expenses for the rest of your life.
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enough so u dont have to think about money anymore
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I would say you are Never Rich becouse no matter how rich yyou are you allways want to be richer and the richer you are the more you think you aren't rich
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money isnt all my friend
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Assuming you already own your house/car etc. then anything over 50k to spend on what ever you want.
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more than 500k+ just in cash
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maybe when you make 50k a month idk. That'd be a point were wealth accumulates pretty quickly unless you live like a king, but then you could be considered rich I guess
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It's not exactly about having a lot of cash in the bank, actually, you can't ever get to be wealthy with money in the bank, you need assets to build a net worth...
When you reach a point where you can live from your assets (investments) and not from your income, then you're actually wealthy.
This is the point when you reach financial independence, meaning you can retire or keep working because you like it not because you need it.
Example: You have a $500,000 worth home and $500,000 on bank savings and a job, that's stupid... you're not rich even of you have a million Dollars.
You buy a $1,000,000 home, get a HELOC (Borrow money over a line of credit based on the value of your home with a very reduced interest rate), invest that money, make actual weekly or monthly fresh cash from the investment (over the interest rate), retire on that passive income and relax... that's when you can be considered wealthy, not because how much you have but because you have financial education and you're smarter than the average...
You don't get a nice black credit card if you make a million Dollars a month but expend all of it at the end of the month, that actually is a big red flag, you're not actually rich... you get rich people privileges and your "rich man title" when you have collateral, that means investments, actual assets...
No matter how much money you might have, if you're spending from your wealth, you're not really rich, it's when you actually stop spending when you're truly rich. Being poor is expensive, being rich is not only cheap but actually free, really rich people stops spending actual money... you get stuff to reduce taxes and stuff, a truly rich person is in an "infinite money glitch".
Example: A newly rich person, doesn't buy a big bad ass private jet right away, that's stupid... you buy a small private jet the first year and use it for tax deductions, next year it's a sell and then buy a slightly more expensive private year, you use the expense for yearly tax deductions again, repeat every year, with properties like homes, stocks (harvesting) and so on... you buy stuff from cheap borrowed money, you never use your actual money...
That's what you need to be rich, for real, you buy a Lamborghini using a credit based on your income and keep working to pay for it, not only you're actually poor but you're also quite financially illiterate...
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