My definition of 'Rich'.

Oct 15, 2011 00:46

A person is rich if they have enough money to invest, and can get enough interest off that investment to reasonably meet monthly needs.  Not 'wants', needs.  As in, if you can handle $2000 a month, without actually having to work, you're rich.

See, the thing is, once you have enough money that you can invest it and reasonably expect to handle most basic costs without hurting the money you have invested, you've made a shift.  If you do continue to work, you're extending what you have, and don't have to worry about much else.  (This presumes you're smart enough not to spend outside of your 'earnings').

Most people don't have enough money to invest while still being able to survive.  With the cost of rent, hydro, internet, and possibly phone and a vehicle (not counting credit card payments), most people don't make enough to be able to invest regularly, and aren't going to get enough money from these investments to actually see anything in return.

That, I think, is the 'tipping point' between rich, and poor.

life, self-reflection

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