https://finance.yahoo.com/news/heres-much-m...-180623008.html

 

Can't complain too badly.

12.6% (self-induced) rate of return since 1999.

 

$5 million will be a huge challenge for most who like to travel, desire home ownership or have kids. Except for Silicon Vallyians.

If your assets cashflow an amount greater than your monthly expenses, you are wealthy. Arguably better than being rich. Kind of like having a great farm system! ?

Not having to ever work again or worry about money is being rich IMO. Millions in the bank.

If your assets cashflow an amount greater than your monthly expenses, you are wealthy. Arguably better than being rich. Kind of like having a great farm system! ?

Nailed it

If your assets cashflow an amount greater than your monthly expenses, you are wealthy. Arguably better than being rich. Kind of like having a great farm system! ?

 

Yeah, but then one small thing can throw it out of wack.

 

I can't exactly work having a seizure into my monthly expenses, but when it happens there's a couple thousand dollars that I suddenly owe a hospital for an ambulance/ER trip I didn't order.

Yeah, but then one small thing can throw it out of wack.

 

I can't exactly work having a seizure into my monthly expenses, but when it happens there's a couple thousand dollars that I suddenly owe a hospital for an ambulance/ER trip I didn't order.

 

Some degree of financial independence such that you're not dependent on wage labor over long periods of time seems pretty crucial to the definition. Living paycheck-to-paycheck +$1 sure as heck isn't "rich" because like you said, the smallest unexpected expense can throw you deep in the hole.

 

Yeah, but then one small thing can throw it out of wack.

 

I can't exactly work having a seizure into my monthly expenses, but when it happens there's a couple thousand dollars that I suddenly owe a hospital for an ambulance/ER trip I didn't order.

Its also not true. You arent wealthy if you are bringing in 1000 bucks a month but your expenses are 800.

Its also not true. You arent wealthy if you are bringing in 1000 bucks a month but your expenses are 800.

I believe they meant that if your assets (dividends, rentals, etc) cover your expenses, which leaves salary/wage income then you are wealthy.

 

It's one way to look at it, don't think I really agree with it but I could see how someone labels that as wealthy.