Rodger that!
I add up all assets and then subtract all liabilities to determine net worth.
Multi-Millionaire
- Thread starter Ace in the Hole
- Start date
Rodger that!
I add up all assets and then subtract all liabilities to determine net worth.
Does it matter?
The term "millionaire" is something that the 96% of people aspire to by buying their $50 of lotto 5 days a week and $30 of scratchies each week and then wonder why they have no money.
The average person might win the big one and blow that money on trinkets and maybe end up with $500K left which they will put into a fixed term investment (or just into their day-to-day account) and maybe earn 5% before tax. That will maybe give them income of $25K but that will get eaten away with inflation and they will fritter away more of the $500K until they have nothing.
But hey, they were a "millionaire" in their mins and all their friends that appear aout of the woodwork.
The true measue should be if you have to work or not. That does not matter how much you have or if you are a millionaire or not.
My investments allow me to not work at all, I choose not to (or more to the point, my wife thinks I'll drive her nuts at home
)
I really need to do something bad here at work so I can get sacked.
The term "millionaire" is something that the 96% of people aspire to by buying their $50 of lotto 5 days a week and $30 of scratchies each week and then wonder why they have no money.
The average person might win the big one and blow that money on trinkets and maybe end up with $500K left which they will put into a fixed term investment (or just into their day-to-day account) and maybe earn 5% before tax. That will maybe give them income of $25K but that will get eaten away with inflation and they will fritter away more of the $500K until they have nothing.
But hey, they were a "millionaire" in their mins and all their friends that appear aout of the woodwork.
The true measue should be if you have to work or not. That does not matter how much you have or if you are a millionaire or not.
My investments allow me to not work at all, I choose not to (or more to the point, my wife thinks I'll drive her nuts at home
)I really need to do something bad here at work so I can get sacked.
Does it matter?
The term "millionaire" is something that the 96% of people aspire to by buying their $50 of lotto 5 days a week and $30 of scratchies each week and then wonder why they have no money.
The average person might win the big one and blow that money on trinkets and maybe end up with $500K left which they will put into a fixed term investment (or just into their day-to-day account) and maybe earn 5% before tax. That will maybe give them income of $25K but that will get eaten away with inflation and they will fritter away more of the $500K until they have nothing.
But hey, they were a "millionaire" in their mins and all their friends that appear aout of the woodwork.
The true measue should be if you have to work or not. That does not matter how much you have or if you are a millionaire or not.
My investments allow me to not work at all, I choose not to (or more to the point, my wife thinks I'll drive her nuts at home
I really need to do something bad here at work so I can get sacked.
I understand what you're getting at and I agree that the terms themselves are pretty pointless but your measure of financial success is far too subjective.
Some people are happy to retire on 10k per annum passive income with a paid off PPOR. Whilst they don't 'need' to work and might be very content, they're living below the poverty line.
The person who retires on 200k passive might turn his nose up at the 10ker insisting that 10k isn't enough to survive, whilst the person on 10m might turn his nose up at the 200ker insisting that 200k isn't enough to live any kind of life.
Many on this forum could retire today but keep working because their passive income, though enough to eliminate the 'need' to continue working, isn't enough to provide what to them is a pleasurable lifestyle. In their minds, they 'need' to continue working until they accumulate more wealth and increase their passive income (and I'm not referring to those who choose to continue working for personal reasons eg. pleasure, staving off boredom, etc.).
So, everyone has a different idea of how much is enough to not 'need' to work anymore.
Technically, even your average person could quit his job, sell his house and move to a developing country and live his life out comfortably enough without the 'need' to work.
I understand that too.
Someone might have a lifestyle that $10K pa is enough to survice.
Maybe someone on acreage with PV systems, water tanks, grow their own vegies and run their own livestock completely off the land, so they have little need to spend money on consuder items.
But today's pensioners battle to survive on $30K for couples and $20K for a single person. I would not say that living on $25K would be a desirable outcome (and most definitely not $10K) after investing all your life. You could get that doing nothing and then sticking your hand out at the age of 65 and asking for someone else's help. The $20K to $30K range is really the "do nothing" approach.
Someone might have a lifestyle that $10K pa is enough to survice.
Maybe someone on acreage with PV systems, water tanks, grow their own vegies and run their own livestock completely off the land, so they have little need to spend money on consuder items.
But today's pensioners battle to survive on $30K for couples and $20K for a single person. I would not say that living on $25K would be a desirable outcome (and most definitely not $10K) after investing all your life. You could get that doing nothing and then sticking your hand out at the age of 65 and asking for someone else's help. The $20K to $30K range is really the "do nothing" approach.
Fifth, that's how I see it too.
You don't need to be wealthy to 'choose' not to work. Geez, you don't even need to go to a developing country.
My experience is most people who give up work, or who work little, do so because they are happy to live modestly on a smallish income (the poor and average would be in this group), however those that aspire to earn more often keep working, because they don't want to live modestly (why they work and invest hard in the first place) which makes me think giving up that income is more significant than they think, or admit.
When you think about it, the immediate big drop in income, that one would experience as soon as they gave up the job, is what would makes most people hesitate, because it's the desire for more that they seek, not less.
In fact if leaving a job is any sort of gauge, I'd say it's more a factor of income of the job becoming insignificant along side that of the investment income.
Just saying you could leave your job doesn't cut it.
You don't need to be wealthy to 'choose' not to work. Geez, you don't even need to go to a developing country
.My experience is most people who give up work, or who work little, do so because they are happy to live modestly on a smallish income (the poor and average would be in this group), however those that aspire to earn more often keep working, because they don't want to live modestly (why they work and invest hard in the first place) which makes me think giving up that income is more significant than they think, or admit.
When you think about it, the immediate big drop in income, that one would experience as soon as they gave up the job, is what would makes most people hesitate, because it's the desire for more that they seek, not less.
In fact if leaving a job is any sort of gauge, I'd say it's more a factor of income of the job becoming insignificant along side that of the investment income.
Just saying you could leave your job doesn't cut it.
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Often the only clue is when they drive up to the Centre link office to collect the age pension in their late model E class mercedes coupe.
