Money Surprise
When I was a teenager, I though that it just took a million dollars to be rich. Perhaps it was back then (barely), but now according to 42% of millionaires, it take a cool 7.5 million to feel rich!
I’m bummed! 10 years ago, I thought that if I were able to grow my money to 1.6 to 2 million dollars, I would be rich! Not Buffett or Gates rich, but still very well off! But consider this information I read on Yahoo.com’s site called “U.S. millionaires say $7 million not enough to be rich”, I’m not even close!
More than four out of ten American millionaires say they do not feel rich. Indeed many would need to have at least $7.5 million in order to feel they were truly rich, according to a Fidelity Investments survey.
Some 42 percent of the more than 1,000 millionaires surveyed by Fidelity said they did not feel wealthy. Respondents had at least $1 million in investable assets, excluding any real estate or retirement accounts.
So according to the survey of over 40% of those who are multimillionaires, it will take at least $7.5 million dollars to be considered rich.
I’m afraid I’m going to be short by at least 5.5 million…
Unfortunately, there is a reasonable probability of inflation running rampant, and so there is a good chance that these millionaires may be correct. So what is a person to do?
- Read 7million7years.com site, according the blogger he was able to make 7 million in 7 years.
- Be extremely frugal. A great site to refer to for this route is the blog site earlyretirementextreme.com
- Perhaps another route would be via investments. In this case consider the advice at BuyLikeBuffett.com
- Maybe lottery ticket is a viable options after all? (Just kidding).
- Work 2 or 3 more jobs? Possible, but a bit demanding…
To be honest, I’m not really sure how to get up to the 7.5 million dollar level.
What do you think would be the best possible way to get to the elusive 7.5 level?
-MR
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I believe you’re “rich” once you have enough passive income that you never have to work again and can support your lifestyle for the rest of your life. I recently wrote a post on how $1 million could earn me around $30,000 a year in passive income — is that enough to make me rich? It depends on whether I want to live the lifestyle of a person who earns $30,000 a year, or whether I want a nicer lifestyle. That’s a personal choice (one that I’ll make when I have a million dollars!), but it goes to show how “rich” can get more and more elusive, depending on your expectations …
Inflation can drastically change the game too. You might think 10 million is enough, but if inflations rises like a helium balloon escaping from a child’s grip. Then perhaps even 20 million isn’t enough… It’s all dependent upon what’s happening in the government.
$3-5 million cash is good enough!
I wouldn’t turn that money down! 🙂
High income people don’t think they’re high income either. Maybe folks should focus more on finding “enough” than on the Stuff trappings that they think make a person rich.
think you’re broke you probably aren’t
I personally, strive to create a perfect balance. I have a post called:
Reasons To Spend Money – I Don’t Want A Coffin Full Of Dollars where I give solid reasons not to hoard money and to enjoy life.
I think the only way to get to that # is through your own business venture and I’m not talking about opening up a cafe, but selling an actual product.
I don’t know if I have the fortitude to take on that type of financial risk though. Not sure yet if I would or could be able to do it. I guess the other way to do it is to join a startup and be one of the people to help get it off the ground.
I think you are correct! If you have time, then possible through real estate too…
I don’t think I could take the risk either, especially with my family being forced to take the risk too. If I were younger, with less responsibilities, then yes, that would have been the ideal time to go for it…
Good idea on joining a startup! That would be incredible and rewarding at the same time. Especially if you could somehow keep your day job while doing it.
Inherit!
I would feel rich if I could handle any bill that comes my way without feeling stressed. I don’t know if there is an exact number. I know I would like to have several million accumulated before retirement. Actually, I would like to have that now, but I don’t. 🙂
Inheriting it would be nice! Especially for someone like me that wouldn’t blow the money on a trip to Vegas 😉
But that takes all the fun out of getting it, for the most part! I want someday look back and say “I did that, by doing this”…
Nice Post. I would feel rich if I could do what ever I wanted to. I don’t mean bad things but If I could go places and buy things with out feeling bogged down. I think I feel the same as Everyday Tips said it.
50 million would enable me to feel like I can do anything that I want.
But I agree with Yakezie, 3 to 5 million would suit my simple taste quite well 🙂
I prefer starting out on your own. Good idea with good execution and a lot of perspiration!
I agree, I definitely believe that money would mean more and be more rewarding!
I wouldn’t worry about reaching the $7.5 million mark unless your goal is to be rich. “Rich” doesn’t mean “not poor” it means “more money than I really need”.
I don’t intend to experience lifestyle inflation in my golden years (no globe trotting for me now or in the future, etc). I just want to maintain the life I have now (pay all my bills w/o worry, roof over my head, good food on my table, etc.) and I think I’m on the right track.
That a good way to go about it too!
I would like a set amount that would enable me to work part-time, so I could travel more.
3 to 5 million is what I think would accomplish that presently, but who knows… Tomorrow the number will probably be larger.
Feeling rich is all about cash flow! There are people who are balance sheet rich. They have a high net worth, but are they rich? Net worth has importance, but it is not everything. Earning $2-300K per year with no bills or work responsibilities will be fine with me.
I can see and understand that! That’s a great point, if you have all your assets tied up, it can seem like you are poorer than you actually are.
Krantcents hits it on the head! If I have 2-300k coming in with no work then I would definitely feel rich.
Meanwhile, I think I need 2.5 million to start feeling rich. Even with that, 4% is just 100k per year.
Anyway, I don’t need to feel rich. I’m shooting for comfortable. 😉
Yeah, at this point I’m just shooting for the crossover point. Once I get accomplish that… then I’ll think about the additional millions…
I think I could make due with an even million! The question was directed at current millionaires, and since everyone wants more than what they currently have, of course they’ll say they need more.
If you posed the same question to mere billionaires, they’d probably say they need 7-8 billion to be rich.
Hmm, good point. It’s the old “the grass is greener on the other side” mentality, except that in this case the other side is 7.5 million instead of a few million.
The billionaire scenario, I’m not so sure about. Hardly anybody is a billionaire, so I’m thinking they feel pretty rich. But that doesn’t mean that they don’t want to be uber-rich…
“To be honest, I’m not really sure how to get up to the 7.5 million dollar level. What do you think would be the best possible way to get to the elusive 7.5 level?”
Here is what I say:
Start young – save long and hard/ have rich ancestors/ start with 7.1 million/ start a successful business.
Be one of those rich ancestors – start a long term wealth project with your family! You won’t be rich but your great-grandchildren will love you!
Seriously though – as others have said before – having money doesn’t make you rich – living the life you want does. Once you get a handle on cash flow and have some stashed for emergencies you may have enough – if it lets you life the life you want
I’m wondering what the other 60% of the surveyed millionaires said – WSJ seems to be quoting a minority!
I hear you about the helping the next generation, check out one of my older articles: Giving My Kids A Head Start In Building Wealth
I think the 42% was the largest segment, I’m sure there were probably at least 5 or so categories, “10 million” being one for sure.