What It Takes To Be Wealthy In 6 Numbers
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- เผยแพร่เมื่อ 5 มิ.ย. 2024
- 00:00 Intro
01:34 $2,600,000
03:33 $2,200,000
04:11 $560,000
05:43 $483,000
07:11 $135,605
07:35 $216,056
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Thanks for watching, I appreciate you!
My grandfather always taught me it was not what you made that was important, it was what you kept. He and my grandmother always lived comfortably, but modestly, and no one would have suspected how comfortable they were. He bought a new car every 3 years, but working for an auto company he got a good deal, and people were lined up at his church waiting to buy his gently used old car. When he retired they had a little over $1M in investments. No big deal today, but in 1965 that was real money!
Wow that kind of money in 1965 was really impressive and it sounds like he was a good humble man, something you don't have much of today.
Having enough saved up that you don't have to worry about working the rest of your life is wealthy. Time to do what you want is priceless when you can't buy time that's passed by back.
Yes 🙌
I think it depends on your background. A person who comes from a wealthy family vs one who grew up poor will have a different perspective on wealth.
Very true
Truer words have never been spoken.
glad to see a channel/video that also has numbers for single folks
I've never been comfortable with either metric to define being rich/wealthy (I don't think I distinguish between the two terms). A sense of wealthy for me would come from not having to save anymore (for retirement or current life expenses, like car, roof, etc.). So basically once all income is effectively discretionary. As long as I have financial obligations that I need to work to meet, it's hard to feel wealthy.
I think wealthy is 50x the median income, or about 3.5 million. That allows withdrawing twice the median income following the 4% rule of thumb
Why not just take your desired annual living expenses then multiplying by 33 and living off 3%? For example $80000 x 33.3 = $2,664,000. This strategy is a little easier to implement, but unto each their own...
@@educatedwanderer9293 if your annual expenses are 20k, and you multiply by 33, to get a net worth of 660k, you aren't wealthy
I think wealthy would be at least double the median income. 4% is a very conservative withdrawal rate
If your main goal is to live a wealthy lifestyle yes that requires a higher annual living expense. Most millionaires get there by living well within their means, and become wealthy without living a flashy lifestyle. If you are able to spend and save enough to do both then you have to have a really big income.
@@educatedwanderer9293 I never said spend a lot before becoming wealthy. Living well within your means is the easiest way to become wealthy. But the cool thing is that by doing that your means grow, eventually to far more than they would be if you had always lived at your means
I have advice for those who strive to consider themselves "wealthy", from someone who is wealthy using I believe all of the definitions you provided. Far more important than whether others would consider you wealthy, is whether YOU consider yourself content with your life. Of course you can have both, wealth and contentment. But wealth without contentment, is actually worthless. Make sure that you aren't putting how others may "judge" you, ahead of what you want to strive for in life.
Well said.wealth is not always measured in your bank account.
IDK. I tend to separate wealth from contentment entirely. A person can be content in life while being realistic that they are nowhere close to wealthy.
While yes, I think most people would agree that it is hard to be content if you are concerned about how you will pay the bills, or if your child is hungry, but for this discussion I think it can be agreed that above a certain base level of needs being met, wealth and contentment are relatively uncorrelated.
In short, I think as a general rule, financial numbers and feelings of mental state should be separated. Yes, financial stability feeds into contentment, but they are not equivalent.
@northeasterndirtandpropert7974 It really is though. Wealth is a measure of your money, resources, and assets. Just because people who were not wealthy started to bastardize it with phrases like "emotionally wealthy" etc etc, doesn't change the definition.
If you're content with your life, just say you're content. If you have a lot of money, or other assets, then you get to say you are wealthy.
@@danh2716 While that seems kind of harsh, I can't argue your point. I wouldn't say "emotionally wealthy" is bastardizing the original definition, but yes, I see the separation.
@dstevens518 It's not harsh. It is fine to use a word like "wealth" in a metaphor, as in "wealthy in friendship," to mean "have a lot of friends." But people take it too far, to the point of losing reality of the meaning of the word, when they then suggest that the definition of "wealth" actually involves having friends.
The word has a meaning, and confusing it with often repeated metaphors doesn't change that meaning.
If anything these numbers really point out, in a round-about way, just how many families are living well above their means.
When the numbers say you're in the top 10%, but the anecdotal evidence all around you says that WAY more than 10% of the people you observe around you are living WAY more lavishly, it really doesn't add up.
Great info on wealth, never thought of it that way. I'm on the side that wealth is based on net worth.
I hit my first $100K 2 years ago at 23 years old, and recently the coveted 1M mark… I tell you just have a plan, plain and simple!
I enjoy the topic of median income versus top earning households. I have been striving to keep our spending budget at the median income while earning more to keep out of debt and save. The gap between earning and our budget has grown over time but the idea is the same, spend less than earned and save / invest. Our household gross earning has reached close to the top 10% but we don't spend more. We are happy and feel comfortable, however wealthy is a feeling that comes and goes because it involves being financially healthy as well as emotionally and physically healthy. It is indeed easier to feel secure or even wealthy if you have a net worth or income in the top 10 or 20%.
Even over 2.2 it doesn’t feel like your rich, it just feels like you saved
One thing I've learned is it doesn't matter how much money you make, if you want to be wealthy and you have an income you can, it's all in your mindset. Someone told me the other day it's impossible to save money. She has 2 jobs and earns a decent salary. I'm not sure where all her money goes, but I'm in the same situation as her and even lost my full time job earlier this year and have been able to save $15,000 since January 1st.
Thumbs up. 👍
I think folks are rich/wealthy when they can live happily within their means. My wife and I have no debt. We have plenty of savings and income (demonstrated over years and years of being this way). Are you living your best life within your means? Do you love and care for others and are you loved and cared for by them? That’s what matters most. That is wealth. Everything else is secondary. ❤
Love that!
I would say it takes the following to be wealthy
1. Income higher than your expenses.
2. Liquid savings of 10 times needed to cover your yearly expenses.
3. Paid off home and cars.
4. Being happy with your life.
Yearly @@educatedwanderer9293
You don't need to be happy to be wealthy. You just need to be wealthy.
I know affluent people who don't like their lives, and they are wealthy. I know people happy to put food on the table plowing snow and they will never be wealthy.
How about we all agree not to over complicate things by just using terms the way they were meant to be used. "Wealthy" means having a lot of money, resources, or assets. Just leave it at that.
I think being financially independent plus having a year or more cash on hand is financial freedom. Both are wealth, just at different levels.
Good one Erin. What it takes for me to feel comfortable is enough income to pay all bills and still be able to travel and buy what I need and some of the things I want. To feel wealthy is to have two daughters that are successful in their careers and their marriages. To be extremely wealthy is to have two wonderful grandkids that are thrilled to see my wife and me. I watch another young lady with a TH-cam channel and on one video she was talking about her grandfather and just gushing about him. My new life goal is to have my grandkids gushing about me twenty years from now. It’s weird how when I was growing up, I was uncomfortable around kids and really didn’t care if I had any or not. Thank God I married a lady so much smarter than me and helped me to mature. Thanks for your videos Erin. That are alway great.
Hey David! I have no doubts your grand kids will love you to the moon and back!! To be honest I was one of those people who didn’t really care too much if I had a kid or not until a couple of years ago. (Also I was terrified to have a kiddo…my health history made pregnancy kind of risky)
Well, fast forward to today - we have a little newborn boy who I think is perfect in every way and I’m so grateful to have him…can’t imagine life without him.
We paid a high cost to get him here - not financially - I ended up with eclampsia at birth and almost passed away during delivery. But it’s the people that make life worth it…and to me family is everything.
I hope I can set a great example for my son just as you have for your daughters 😊
@@ErinTalksMoney Bless your heart Erin. That is so scary. I am so thankful that everything turned out well and I believe you hit the jackpot. Little boys love their mothers. So do little girls, but not like little boys, or big boys for that matter. I’m 65 and I have a special relationship with my mom still today even though she passed away five years ago. In fact I was posting photos on Facebook today of my mother and writing about her. There is just something wonderful between mothers and sons. And I know he will be raised with one heck of an education in finance that will start him on the correct path for his future. I know I said you hit the jackpot with him, but he hit the jackpot having you for a mom. I am so proud for you and your husband and will always be wishing y’all the very best.
And family is EVERYTHING!!
Erin, I am so glad you survived that scare. I am sure you are going to be an awesome mom and your kid(s) will adore you! T
The amount a person feels they need can also vary over time.
When I was young, just having enough income to be able to pay the bills without stressing was the goal. That would put me on easy street.
Then 100k was a nice round number. Then 1m was the goal.
My goals have changed a lot. And my opinion of how much is "wealthy" changes as time passes.
100%!
Great video, I like the detailed explanation of the different points of view. If anything, this video not only demonstrates that "being wealthy" is an individual state of mind, but that it also fluctuates depending on your age, the cultural expectations of the time, and your geography.
Really, money can be measured both quantitatively (ie. you've got LOTS/little) and qualitatively (eg. I feel loaded while my neighbour feels poor, even though we make the same income and have the same net worth). This video shouldn't only be seen as a measuring stick financially, but also something to prod you to consider what's really important to you. You can't feel wealthy unless you know which areas of your life you want to enrich.
Including home net worth looks good when you add up wealth but doesn’t do squat to make you feel wealthy. That’s income and investable assets.
I don't entirely agree. Knowing you have a warm house that is fully paid for, and you don't need to pay monthly for a dwelling (taxman not withstanding) does contribute to a sense of feeling your assets make you wealthy.
Yea , a Paid off house = lower expenses but a large number of folks don’t have a paid off home even in retirement.
@gregfisher545 Other people's mind games that they try to play on themselves doesn't really concern me.
Everybody needs a place to live. All other things being equal, owning that place makes you more wealthy than not owning that place.
Great topic , thanks for the info. Good to think NW vs. income
I always increase my 401 k contribution rate every time myself or my wife gets a raise. I usually leave a small increase for my family, but at least a 1% increase. I also contribute to a Traditional and Roth IRA.... as for feeling wealthy my minimum (liquid) target for retirement is 2.5 million. I will not have a pension, so I would like to be closer to 3 million. In perspective each 500k is only worth about 20k/ year if you take out 4% to maintain the base balance. 2.5 million would only be a $100,000 salary per year in retirement. I don't factor in Social Security since it will likely not keep up with inflation.
I like videos like this as it really makes people sit and do the numbers and ask themselves hard questions that they need to live with once they retire. Retiring at 64 with over 5M now seems like I waited longer than I should have as my wife and I did not spend over 100K in our first year of retirement. But my wife and I loved our work so for us it was an easy decision. On top of that we both grew up in poor families and we just never thought about retiring. Thanks, Erin.
We’ve recently had health issues & parents with health issues and I’ve told Steve that I’m back to thinking that we have to retire at 55 to make sure we can enjoy as much of life as possible. I hope you and your wife are having a great retirement 😊
@@ErinTalksMoney 🙏🙏 Nothing but good thoughts for you and your family Erin. 🙏🙏
Another excellent video. Thank you!
Glad you enjoyed it! 😊
I don’t think of feeling wealthy, but comfortable. The only time I am really careful to spend money is near the end of the month when our budget categories roll over and get funded again on the First of the month. For instance if I need gas (approaching 1/2 tank) and it is the last few days of the month, I just wait until after the first to fill up. Otherwise if a category is funded, I just am careful to not overspend. 🙂
I really enjoy your videos! 👏
Thanks so much! 🙏
8:00 Thanks - And to add that that there are a lot of single income households were only one of the parents works outside of the house. We have been in that boat for about 25 years now.
Hi Erin. Wealthy is very subjective and your mindset also influences how you feel. A paid of house and enough money to pay the bills is enough for me.
The feeling of wealth is a relative thing. The more you have the more you think you need to feel wealthy. It's an ever moving target. If your only measure of wealth is the amount of money you have collected I hate to be the bearer of bad news, but you will never be satisfied. It's a vicious cycle. Being rich or wealthy should never be the goal. Being happy and fulfilled is the only true measure of wealth and that doesn't take money.
Erin, I am sorry to hear about your health scare and am happy to hear everything turned out for the best. Congratulations on your newborn son!
Engagement for Erin. Hope the little one is doing well!
I think you're wealthy if you have your health and friends and puppies!!
All the puppies 🐶 I joked with my husband the other day that I could have totally gotten three puppies OR our newborn 😂 puppies are a lot of work, but a newborn is WAY more…. I still want one more pup!
@@ErinTalksMoneyErin, long days, short years. Enjoy your baby each and every day, as they are babies for a very short time. My oldest daughter will be getting married in January and will now be part of her new family. It seems like only yesterday (yes, it’s cliche) when we brought her home from the hospital. Two scared, first time, only children parents with no experience with babies or puppies. Both grandparents lived in different states, so we were definitely on our own. On top of everything, I had an emergency C-section due to placenta abruption and both of us came close to dying, so I understand the extra burden of a traumatic birth experience you experienced. We acquired a puppy later and learned puppies and babies do great growing up together. Ever since I discovered you, I never miss one of your videos. Your information is relevant, interesting and easy to understand. Keep up the great work, as you are awesome.
@@ErinTalksMoney Ha - I have experience with both and babies/kids are more work. Society tends to frown on you if you put them in a crate then take a nap - while pups are perfectly okay with that! I spent over $600 on the dogs this month (food, groomer, vet bill) so I can say that they're not much cheaper than babies some times :) Enjoy the newborn - they grow up pretty fast.
10m investment portfolio and 400k cash flow would feel wealthy.
Great breakdown. Erin. 👏👏 Americans have so many opportunities to actually reach these numbers I'm sure other countries cannot even relate.
Rich is when you have enough to do what you want to do without going into debt.
Thanks for remembering the singles. We are real people too, even if the economists tend to skip over us.
Wealthy is financial independence. If availability of funds does not inhibit your ability to do what you want, you are wealthy.
Very informative 🎉
Glad it was helpful!
Pet peeve of mine a lot of finance TH-camrs do, medians are good for a lot of things, but with the definition of top 10% being wealthy you want that 90th percentile number, the median of the top 10% gives the 95th percentile… min of the top 10% or median of the top quintile would be the wealthy threshold (per given definition)
I question using home equity in the calculation. I think Schwab's number is a better metric. I also like Erin's comment that finance is personal.
Agree for most, home value shouldn't be included. BUT for those with very high home values, who have zero issue with reverse mortgage products and not leaving anything to heirs or charity, that high home value can translate into a healthy monthly income to augment your retirement lifestyle. That matters.
@@dstevens518 When I use a reverse mortgage calculator for a $1,000,000 home and I start retirement at 65 that doesn't translate into much money on a monthly basis, roughly $1600/month. I think people planning that their home will significantly alter their retirement situation with a reverse mortgage are going to be sadly mistaken.
Want to feel wealthy? Go to Sudan, Honduras, Afghanistan, Russia, Oman, Paraguay, Somalia…on and on. The poorest in the US have more wealth than most of the world. Be thankful.
I think wealthy is subjective: for me it’s defined has when you can live your lifestyle in near perpetuity without obsessing about the state of of your income or needing to increase your income every year just to “keep up”
Erin - Great video as always. Very nuanced and love the continued emphasis on how this is all PERSONAL. One area in which I think gets overlooked a lot is late starters. For example, my wife and I had crippling student loan debt but student loan debt that allowed us to eventually (key word there) make in the 99.5% median household income. Yet, because of the loan debt which took many years to pay off when we were middle-class Americans we have a lowish net worth. So, we are HENRYs as your video mentioned. But, we are not young. We are in our 40s. I think it's safe to say there are not 100 million of us but there are probably 10s of thousands (possibly more) of us and we cannot find good financial advice for those in our shoes. I know we're not alone. I know that everyone in our shoes may not be fortunate enough to make the income we make but still make a high income and are finally debt free. This is where most financial advisors online tend to tail off and not address our needs. This is perhaps a potential area to address for someone inclined to do so. Just my two cents.
Allow me to add that when there is so much financial advice that includes time is on your side or time is short do the best you can and live as cheaply as possible in retirement, what about time is short but dang you have a very high income. What are the best strategies? Are they necessarily the same strategies that financial advisors recommend?
This resonates with me! I am late to the savings game too. At age 45 I paid off my student loans during the pandemic and finally stated saving. My 401k balance is half of what is recommended for my age. I am balancing between saving for retirement or saving for college for my 13-year-old. I would LOVE a goal of retirement at 55 -- but 60 or 65 will be more likely to get me to my goals.
Great video, I like how you are strait to the point and don't add a bunch of fluff like channels like Meet Kevin.
Personally, I think being wealthy and rich are different. Being rich means having a lot of money, but being wealthy means you no longer have to worry about money. Wealth is measured in time not dollars. For example, infinite passive income that exceeds your cost of living means you are wealthy. Having a multiple six figure salary or 7 figure net worth means you are rich. That is my own definition.
You've got some clickable titles, Erin! From one creator to another, great work.
Thanks Alex!!
Using the median net worth of the top 10% seems like a weird metric... since that would be the top 5%. Wouldn't it make more sense to look at the lowest amount to qualify you as top 10%
Good point. Now I'm curious how much of a spread there is between the lowest amount and the median...
according to Bing, the lowest is $854,900 to be in top ten as of Oct 2023. Seems too low@@dstevens518
The largest asset for most people is their home, so she is correct to point this out as a major contributing factor. But, a factor that is often overlooked is AGE. For example, most millionaires are over 60 years old. This makes perfect sense, since the more time you have to work your way up the ladder, the higher you are going to be. So, it is important to remember what a difference age makes when making these comparisons.
These are difficult questions to answer because there are both objective and psychological aspects to wealth. I don’t know how helpful subjectivity is here. I think that a helpful objective definition of wealth is the ability to maintain one’s standard of living from passive investments. Based on this definition, my number would have to be 25 times my income (Here is that rule again!😂), as it would give me incredible disposable and discretionary income, especially once my current obligations are met. Then again, once I reach that number, worry about losing it all, as I have heard people far wealthier say, may take that feeling of wealth away from me. So, psychology plays a big role in this equation, as well.
If the 'top 10%' of household NW or income is to be the criteria for 'wealthy' then you should be looking at the figure required to ENTER than cohort, and NOT the 'median' of that cohort'. e.g. If the median NW of the top 10% of US households is $2.6MM, then the figure required to just scrape into the 'top 10%' might be $1.0MM or $1.5MM. Having a NW equal to the median of the top 10% means that half that group has a lower NW and half has a higher NW. So, having a NW equal to the median of those households in the 'top 10%' actually put your household in the 'top 5%" group. (UHNW).
With some of the spenders we have, it is 100% about Net Worth!
We make about 20% more than Vermont's median so we do very well. That keeps a large, warm house for the four of us, rusty but running & insured cars, good home-cooked food, saving about 20% for retirement and donating maybe another 3 or 4%.
From that perspective wealthy would be part time staff, rust free cars and yard-work for me is hammok, bbq and putting on my private green and no pushing snow. Oh, and a nice warm workshop. Nothing too nuts.
Now on to Rich---Rich would be ample cash-flow from investments with no job (handing the keys to Templeton & Phillips maybe), add a 1920's style mansion with a full-staff on site including driver/mechanic for the vintage Rolls and we eat on t-bones and dungenes on the good plates every weekend. Also a big shop/hangar so I can build a Super Cub replica with my teen son. Maybe a small airstrip too with an interesting road track around it. Some international travel too.
I think 99% of us are wealthy in the USA. I’ve seen another country and we are so blessed/spoiled here. I’d like you to show a video comparing the numbers for the whole world.
I agree. About 5 years ago I heard that the top 1% of the WORLD have an annual income greater than $32,000. That was before COVID and the inflation we’ve experienced since early 2022. We are blessed. If we could address only those truly in need and not those “gaming the system” I’m sure we could reduce or eliminate poverty. However, I think you help people with a hand UP, not a hand OUT.
If we were living in those other countries with our US salaries then sure that would be a point. But living in the US? No 99% of us are definitely not wealthy. I mean do you really think someone earning the minimum wage in California of $15.25 (over $30,000/yr) cares that his income would make him wealthy in a poorer country when he's worried about making rent and buying food?
@@ariefraiser140 that person would still have a standard of life much greater, so yes. That is wealthy. Many people live with 5-10 people or more in a small mud house with no water and lucky to have 1 wire for 1 light bulb. So yes, I meant what I said with an understanding of how we live vs other people around the world. Now comparing a minimum wage working in the US to someone making $100,000, of course they will FEEL un-wealthy. It about perspective, we are are so rich here that we expect certain levels of living.
@@Zombiebeast1995 This has nothing to do with comparing to $100,000. This is everything to do with the reality of a $15.25/hr worker in California. You know there are people in homeless shelters in LA and, San Francisco etc making that kind of money? Your dismissiveness of their reality and insistence they are actually wealthy seems a bit tone death.
@@ariefraiser140 all I’m saying is they are much better off than many and certainly have much more opportunities than most in the world. I am not saying they have it easy however, just much better than most.
I think you misread the report, for Median top 10% cutoff is 2 million not 2.6 million.
As one that never made a large salary I was always focused on saving what I could and never going into debt. As a result I wound up in the top 10% for net worth.
Instead of the median net worth of the top 10% - which is the 95th percentile - it would help to know the 90th percentile net worth (that is, the median of the top 20%). Then we would know at what net worth we would cross into the top 10% and be considered “wealthy.”
We are in our early to mid 50's and in the top 10% according to your video. We're debt free and very comfortable but we don't feel wealthy. Maybe "wealthy" is always more than you have? Even being worth several million we're still much closer to the bottom 90% than the top 1%. I just don't consider us wealthy. But we are content and I am good with that.
your question of feeling wealthy.. that is more normallized.. feeling wealthing is easy to answer… feeling wealthy is being able to retire in your early 60s and have alot of money left over when ur in ur 90s and can have a big amount of money u can to transfer to your next generation.. that is wealth..
I love that! And I very much agree
If we define "wealth" down to just replacing a 120k professional income and owning a decent home, we're talking about at least 3.5m. What's that, almost 5m lump sum, to have 3.5m after taxes?
wealthy depends on where u live… wealthy is based on cost of living.. my income is in the top 3% of the american average.. but where I live I feel very middle class… so wealthy is VERY RELATIVE to where u live…wealthy is very relative… due to the large range of wealth.. wealth is based on the exact person being asked..
Hi Erin. Hope your having a great Friday! Assets minus liabilities equal net worth. I have a more than average net worth, but it’s in locked in my house and 401K. You are exactly correct when you say it all comes down to each person’s individual situation. I have a single income and pay all my bills myself and my friends have a double income, and have way more cash, but we all have a comparable net worth
Hope you have a blessed day 😊
Thanks 🙏 for sharing! I hope you have a great weekend Mark!!
Net worth excluding primary residence: USD$3M is a good starting point in 2023
Your risk tolerance goes way up. For us we have a high deductible HC plans with $14k max out of pocket and have even considered going without homeowners insurance. On the flip side you recognise you're a "sue magnet" and end up buying umbrella policies etc. We have a couple of rentals (with fantastic renters BTW) but when they move out we will be out of the landlord business. The risks of a renter burning down your house with somebody else inside is just not worth the likelyhood of losing the millions of $$ you spent a lifetime saving.
As I am retired military, and have TRICARE for Life...how do I equate this to so-called wealth?
When I think of wealth I think of millionaires with a high net worth and cash to buy whatever they want at any time. That's not me and never will be but luckily that's not what I value.
News flash, the vast majority of millionaires don't have, "cash to buy whatever they want at any time."
th-cam.com/video/zAwHVJ1vJhg/w-d-xo.htmlsi=VDMryKhsiz8eD8kW
This video might put it in perspective of what millionaire truly is.
When I think of millionaires - I tend to think of the Millionaire Nextdoor
Rich is about income and dollars. Wealthy is about lifestyle and conditions/things that enhance the human experience. If a person absolutely ADORES seafood and their father is a fisherman- then this is a source of wealth. If a person hates or is deathly allergic to seafood, then their father's occupation is a detriment. Same with money (or a house) in that it can buy you the medical care or education that you desperately need... or it can facilitate your drug addiction and cause your early death. Wealth and riches are two very different things sometimes.
I'm not sure what numbers this would require, but for me it would come down to not so much the *amount* of income, but where it comes from. If it's generated from investments, especially stable, low-risk investments, that would matter more than 2-3x the same income from a job that could just go away tomorrow. I think I'd consider myself "wealthy" if I had enough of that type of income to at least pay all of my bills and maintain at least some of my lifestyle indefinitely, if my wife or I were to lose a job unexpectedly. So I'd say a net worth capable of producing that sort of income (and not locked up in retirement accounts) on top of more or less our current income from our jobs, I think that would get me to what I'd consider wealthy.
Wealthy/rich what is that? I don't know what day of the week it is . And do I care about where my where my next meal is coming from. I can go anywhere if I think that it's safe. That is what most of us think and care about.
Does being considered wealthy matter? As long as you can afford your lifestyle, I think you are fine. If you can’t afford it, you need to assess your income and expenses and decide what needs to be changed.
You can increase income or reduce expenses.
Agree entirely, but everyone wants to aspire toward something. If your goal is to BE rich, vs just ACT rich, I think that'll be much more useful in the end. You'll get peace of mind from a financial aspect (if not necessarily a personal one), and you'll be in a position to help others. Finally, if you've achieved financial wealth, then you can teach others how to do the same, and money issues are probably the main concern of most first world citizens. Not downplaying your point, only saying beyond achieving what you outlined, you can still do even more...why stop at "fine"? :)
@@dstevens518 Why not stop at fine? I’m a stoic, so I believe in adjusting my own expectations vs chasing after what others tell me I should be doing.
That way, I’m in control.
It only matters if it matters, I guess. There's certainly worse things to aspire to, but it isn't a prerequisite for a good life.
In contrast to the HENRY, there is that rare species I call the LIBRA (Lousy Income, Became Rich Anyway). It's not common, but it can be done.
Hahahaha….. I love it 😂
What about little income but high net worth?
In the United States, it’s not your fault if you were not born a millionaire. But it is your fault if you aren’t a millionaire by the time you retire.
More than possible for every Americans citizen not physically or mentally disabled.
Right? I tell my young colleagues that, not everyone will become millionaires, but nothing is stopping you from becoming one.
Absolutely! 💯
Yes 🙌
I don't think it's correct that you need multi-millions to be in the top 10% in wealth. From the numbers I've seen, it's about $800K to get to the top 10%, $2 million to get to the top 5%, $5 million for the top 3%, and $10 million for the top 1%. This is financial assets only, so that may account for the differences.
Hmm didn't you use the median net worth of top 10% then used the 10th percentile of income (instead of the median income of the 10%)? Then the cutoff is inconsistent putting income much lower than net worth for the same top 10%. People seem more consistent on both scale as they aspire to income and net worth around the top 2nd percentile (it seems)
Great video Erin. Does Peanut get along with the baby?
😂 Peanut is ok with baby - he definitely has only child syndrome - he’s curious about him, but he’s sad he has to share Steve and I
For the non-americans that might bump into your content it might be good to know that some of the themes are specifically american. Saving for college wouldn’t apply to those who live in countries where it is subsidised. Also some countries have less crippling student loans with no or very low interest rates.
I would like to be excused in advance but although I hear every word you are talking i cannot notice how sweet, beautiful and clever you are.....lucky husband!!
7:11 Just ask Nicholas Cage 😂
Net worth is notional. Income is just numbers when you can't get anything for it.
Live like a king in the Philippines on $2,000/mo budget.
$5k/mth in rental passive income is wealthy, for me.
The value of my house doubled during the pandemic. My money did not.
I am glad that most of my net worth isn’t my home. Even with a paid for house it’s roughly 30 percent of my net worth
Depends where you live, 130k in San Francisco won’t do much. 400k makes more sense for those people.
Sigh... household again. Thanks for calling it out at 7:57
We could simplify this tremendously and say if you are self-sufficient without having to work another day in your life, you're rich. If not, you aren't.
The median net worth of yhe top 10%? So... the top 5 percent?
Maybe 2.6 million but not including the house and cars would make me feel better. But, I would still buy a good used car over a new expensive car.
i agree. $2.6m investable assets feels much better than $2.6m net worth.
"The median net worth of the top 10%." Isn't that another way of saying the top 5%, or the 95th percentile?
If the “median” net worth of the Top 10% is $2.6-million, isn’t that really what it takes to be in the Top 5%……..🤔
My HH income is variable, but is somewhere between 200-250k and I don’t feel wealthy. Wealthy implies f* it kind of money to me, I can literally do whatever I want, whenever I want. It is highly unlikely I will ever feel wealthy.
What I do feel is secure. There isn’t a whole lot that can actually bother me financially.
We are all wealthy but have too much envy
Well, that's depressing. I felt a lot wealthier before this video. 😢
A high income means nothing if you dont save it? I earn 50% less than my peers but save 80% of my income because i focused on paying off all my debt. They only save 12% as the mortgage and car payments eat all their money as they continue to inflate their cost of living as they get more money.
If you are debt free, stay debt free. Your welth skyrockets expediency when you can invest large amounts of free cash flow instead of continually paying off bad debt.
We all think of being wealthy in terms of money. If you beat Cancer would you feel wealthy?
i feel like i need 1 million dollars, just to be comfortable enough to take vacation
Ouch!
Only PE ratio lol
You’re wealthy if you can Fat FIRE