What/who is a Millionaire?

What/Who is a Millionaire?

  • Someone who has $1m in bank deposits

    Votes: 17 16.0%
  • Someone who has total assets worth $1m (car, PPOR, investments etc.)

    Votes: 11 10.4%
  • Someone who owns $1m in investments (shares, property)

    Votes: 9 8.5%
  • Somone who has equity of $1m in investments (shares, property)

    Votes: 74 69.8%
  • Someone who has a fully paid out PPOR worth $1m

    Votes: 10 9.4%
  • Someone who has a Business worth $1m

    Votes: 8 7.5%
  • Someone who has a Business with annual turnover of $1m

    Votes: 0 0.0%
  • Someone who has a Business with annual profit of $1m

    Votes: 7 6.6%
  • Other - Please explain.

    Votes: 9 8.5%

  • Total voters
    106
  • Poll closed .
I had an interesting conversation with my daughter. We were discussing money and I asked, from her perspective, what would define someone as being a millionaire. At first she said, "I dunno? Someone that has millions of dollars in the bank?" I said, OK, but what if they didn't? and gave some other examples of wealth. In the end, the question was "too hard" and she eventually said "someone with a lot more that I've got" considering she is still at school, and her biggest asset at this stage is a car, that is probably a fair comment.

So, what is the Somersoft indicator of Millionaire?
 
Someone who can put cash or a bank check on the table for $1,000,000 with 48 hrs notice.
I'd consider that person to be a millionaire.
 
i agree with Piston Broke - that is, someone who can get their hands on a million bucks within 2 days will satisfy my criteria.

But in the scheme of real estate investments, it isn't much to have a million of assets on paper. 3 or 4 average regional properties will easily do that. 2 average metro properties may get you over a million.

One thing i have always been curious on though (and I've been too lazy to ever look it up), but my understanding of a billionaire is confused by how you actually define a billion. Correct me if i am wrong, but i think the Yanks define a billion differently compared to the brits. The brits, or the europeans, defines it as a million million and the yanks defines it as 1000 million - or something like that. Can anyone clear this confusion up for me.




Thanks

g
 
i just looked it up. some countries use 10^9 and some use 10^12 as a billion. it depends on what country you are in.

To sum up, most european countries still define a billion as 10^12. the brits and the commonwealth countries was using 10^12 before 1974, but after then they define a billion as 10^9. Canada uses both.

The term short scale is for 10^9, long scale is 10^12

this is from wikipedia:

-------------------------

Current usage

Short scale countries and regions

106 = one million, 109 = one billion / one milliard, 1012 = one trillion, etc.

English language-speaking countries and regions

Most English-language countries use the short scale with 109 = billion. For example:

Australia
Hong Kong (English-speaking)
Ireland (English-speaking)
New Zealand
Philippines (English-speaking): Some short-scale words have been adopted into Filipino.
Singapore (English-speaking)
United Kingdom (see Wales below)
United States

[edit] Other short scale languages and countries

Other countries also use a word similar to trillion to mean 1012, etc. While a few of these countries use a word similar to billion to mean 109, most have kept a traditional long scale word similar to "milliard" for 109. Some examples of short scale use, and the words used for 109 and 1012, are:

Brazil (bilhão, trilhão)
Bulgaria (милиард miliard, трилион trilion)
Estonia (miljard, triljon)
Indonesia (milyar, triliun) [15]
Iran (میلیارد milyard, )
Israel (מיליארד millyard, )
Latvia (miljards, )
Lithuania (milijardas, trilijonas)
Romania (miliard / bilion, trilion)
Russia (миллиард milliard, триллион trillion)
Turkey (milyar, trilyon)
Wales (biliwn, triliwn)

[edit] Short scale use but with other terminology

Greece (εκατομμύριο ekatommyrio "hundred-myriad" = 106; δισεκατομμύριο disekatommyrio "bi-hundred-myriad" = 109; τρισεκατομμύριο trisekatommyrio "tri-hundred-myriad" = 1012; τετράκις εκατομμύριο tetrakis ekatommyrio "tetra-hundred-myriad" = 1015, and so on.) [16]

[edit] Long scale countries

106 = one million, 109 = one milliard / thousand million, 1012 = one billion, 1015 = one billiard / thousand billion, 1018 = one trillion, etc.

The traditional long scale is used by most Continental European countries and by most other countries whose languages derive from Continental Europe (with the notable exceptions of Greece, Romania, and Brazil). Many of these countries use a word similar to milliard to mean 109, and/or a word similar to billion to mean 1012. Some examples of long scale use, and the words used for 109 and 1012, are:

Andorra (Catalan: miliard or typ. mil milions, bilió)
Argentina (Spanish: mil millones, billón)
Austria (Austrian German: Milliarde, Billion)
Belgium (French: milliard, billion; Dutch: miljard, biljoen; German: Milliarde, Billion)
Bosnia and Herzegovina (Serbian: милијарда milijarda, Билион bilion; Croatian: milijarda, bilijun)
Chile (Spanish: mil millones, billón)
Colombia (Spanish: mil millones, billón)
Costa Rica (Spanish: mil millones, billón)
Croatia (milijarda, bilijun)
Czech Republic (miliarda, bilion)
Denmark (milliard, billion)
Dominican Republic (Spanish: mil millones, billón)
Ecuador (Spanish: mil millones, billón)
El Salvador (Spanish: mil millones, billón)
Finland (Finnish: miljardi, biljoona; Swedish: miljard, biljon)
France (milliard, billion)
Germany (Milliarde, Billion)
Guatemala (Spanish: millardo, billón)
Hungary (milliárd, billió or ezer milliárd)
Iceland (milljarður, billjón)
Italy (miliardo, bilione) [14]
Liechtenstein (German: Milliarde, Billion)
Luxembourg (Luxembourgish: milliard, billioun; French: milliard, billion; German: Milliarde, Billion)
Mexico (Spanish: mil millones or millardo, billón)
Monaco (French: milliard, billion)
Netherlands (miljard, biljoen)
Norway (milliard, billion)
Paraguay (Spanish: mil millones, billón)
Peru (Spanish: mil millones, billón)
Poland (miliard, bilion)
Portugal (mil milhões or milhar de milhões, bilião)
Serbia (милијарда milijarda, Билион bilion)
Slovakia (miliarda, bilión)
Slovenia (milijarda, bilijon)
Spain (Spanish: millardo or typ. mil millones, billón)
Sweden (miljard, biljon)
Switzerland (French: milliard, billion; German: Milliarde, Billion; Italian: miliardo, bilione)
Uruguay (Spanish: mil millones or millardo, billón)
Venezuela(Spanish: mil millones or millardo, billón)

[edit] Both long and short scales countries
Country Short scale usage Long scale usage
Canada Canadian English (billion = 109, trillion = 1012) Canadian French (milliard = 109, billion = 1012).
Puerto Rico in economic and technical matters (billón = 109, trillón = 1012) in Latin American publications outside Puerto Rico (millardo or mil millones = 109, billón = 1012)
South Africa South African English (billion = 109, trillion = 1012) Afrikaans (miljard = 109, biljoen = 1012) [17] [18].
 
Topic comes up couple times a year. Long story short, today in the investment world when we refer to $1Billion it's $1,000,000,000.00 ie. one thousand million - regardless of what used to be the case in past decades or smaller countries etc.
 
AU$1m = AU$1,000 x 1,000
AU$1b = AU$1,000,000 x 1,000
AU$1t = AU$1,000,000,000 x 1,000

Technically a millionaire is someone with net assets of $1m (total assets less debts, inc PPOR) but this is an easy milestone for many these days.

I agree a true millionaire is someone who can stump up $1m in cash or a bank cheque within 24-48 hrs.

A true millionaire these days would be worth at least $3-6 million excluding PPOR.
 
You can if you've got it in a LOC.;)

i guess so but why would you need $1mil LOC. My mother in law has loads of houses and no mortgage. her kids will inherit her estate..get 1 or 2 each. She has 5 kids. she also has cash but doubt it's $1mil. she still complains she has no money!

though I do know of people with a few mil cash and properties but they are retirees.
 
I think that's crazy. Even someone with $5mil net worth can't come up with $1mil in 48 hours.

Have to agree.

If you could come up with $1m in 48 hours, then it would have to be very liquid (ie cash) and I would argue you aren't investing your money smart enough in that case.
 
i guess so but why would you need $1mil LOC. My mother in law has loads of houses and no mortgage. her kids will inherit her estate..get 1 or 2 each. She has 5 kids. she also has cash but doubt it's $1mil. she still complains she has no money!

though I do know of people with a few mil cash and properties but they are retirees.

Hi Sue,

Sounds like your MIL could obtain a LOC for 1M if she wanted to. Although, as you say she probably wouldn't need or want to do this!

I think it would be possible for some people to raise $1M within 48 hrs. If they have their cash in offset accounts, Term Deposits, LOC's, Redraws, Shares etc it may be possible.

The question would be though, could those people afford to keep paying the interest on their remaining property investments if they took out 1M! :eek:

Regards Jason.
 
I think that's crazy. Even someone with $5mil net worth can't come up with $1mil in 48 hours.

Wanna bet?

I suggest those here who think they are millionaires go to their banks or MBs and request if they can provide them $1,000,000 in cash, bank cheque or a Letter Of Credit within 48hrs (ok even <1 week).
Now you say you have to borrow it so it's a loan and interest is payable, which is true.
But no bank would give you $1,000,000 unless they thought you were worth reasonably more. Most people can borrow way more than their net wealth, so if your net worth is $1 Mil, you should not have too many problems getting a $1Mil bank cheque or LoC or LOC.
If you cant, then you aint no millionaire. A millionaire has $1,000,000 now, not sometime in the future. That is generally a wannabe (or aspiring) millionaire. Which of course there is nothing wrong with

Many seem to think "net worth" because it's a nice fuzzy, warm & vague concept, until (and if) the time comes that you need that what you believe is your net worth in liquid currency.
 
Many seem to think "net worth" because it's a nice fuzzy, warm & vague concept, until (and if) the time comes that you need that what you believe is your net worth in liquid currency.

I don't think it is warm, fuzzy or vague.

Unless one of my kids was kidnapped and I needed $1M in cash within 24 hours, I couldn't possibly imagine any scenario where I would want or need access to $1M in cash.

I count it as net worth. If one sold everything, paid back the bank, and is left with $1M, then I consider that means one is a millionaire.

As Marc said, though, it certainly doesn't allow one to "live like a millionaire", which I think is a very different thing.

Anyway, I don't really care how we "compare" with others. If I thought that way, we would be driving a flash car and wearing fancy clothes, and I couldn't be bothered :).
 
Isn't it interesting to see how we all have a different perception of what this important milestone is?

The majority of people look to this figure with envy and day dream about all the things they could do with $1m. They dream of the millionaire lifestyle and the truth is that if you are going to spend buckloads of cash, then to maintain your riches, you need an income stream that is larger than what is going out. If ALL you have is $1m in the bank, then you won't be a millionaire for long. If you want to live this kind of lifestyle you will need to have a lot more than $1m.

Attaining $1m in assets is a monumental milestone for many people, but the truth is, that unless it is all debt free, then you are NOT a millionaire. You may be well on your way, and that is a worthy achievement, but don't kid yourself. A millionaire, you are not.

I think the next milestone is to achieve a net worth of $1m. This would be the amount that you would have, should you sell everything up. Net Assets. To me, you are a millionaire once you have reached this goal, although to declare that you have now won the race and you are, indeed rich, would be pure folly. It is true that many would not be able to slap $1m in cash or a bank cheque within 48 hours at this stage, but nevertheless, they are technically millionaires.
 
I realised the other day I had hit the milestone of over $1mill equity. :D

Now I am off on my way to put a 0 after the 1.

Cya's.
 
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