[nakuls003]

I saw this post first thing in the morning and now I'm worried whether I'll ever be rich? It will take me a good 20 years to accumulate 5 Cr and by then, I'll be 50 years old and today's 5 Cr will degrade in value by then.

[Torqueceptor]

A very interesting poll this, but for some reason I am unable to vote. Nonetheless, I wish participants to the poll would state numbers. I am sure everyone would have their personal benchmark of having made it financially independent. Here goes mine. I would consider myself rich when my financial assets can meet 1.5x of my current expenses at a 5% yield. Frankly even a 6% yield works but better safe than sorry.

[Gotham_City]

Originally Posted by Hayek

And a net worth of USD 30 mm for the UNHI groups of the big private banks to consider you a worthwhile customer - which would also get you into the Top 0.5% of the US population. Yup at ₹ 250 cr, even Credit Suisse would think you are rich.

Tend to agree. US$ 30 Mn (INR 250 Cr) is the right definition - accepted world wide. Not a small club even at that level. US alone has more than 2.3 Lac people in the bracket.

Remember a dialogue from Bollywood flick - business class rich or private jet rich.

US$ 30 Mn will still be a borderline for private jet rich (one can fly private for most of the travel).

The range of US$ 1 Mn to US$ 30 Mn is one of varying degree of affluence.

[Jaguar]

Originally Posted by vj_torqueaddict

GNH index of Bhutan is truly ground breaking and hope humanity accepts it.

If you really believe in the GNH index story of Bhutan, then you are living in a dream. First off, only about 1 percent of the population was surveyed for calculating the GNH. And there are many articles that show it is not all hunky dory in Bhutan. Here is one: https://theworld.org/stories/2018-05...-health-crisis

Now back to the discussion about money

[terra85]

Am not sure where I read it but holds true " Richness is time ". If you have time to do what you feel like without thinking that you need to work to make money. That makes most of us are poor then .

[amavin]

A famous take on this topic: https://www.goodreads.com/quotes/734...seph-heller-an

Cannot argue with this, can we?

[one-77]

Originally Posted by SoumenD

Wait what

Which part of Bangalore man? Might be absolute heart(MG road/Kormangla)? Even there I think 12cr sounds a stretch, its understandable in Mumbai though. Am currently scouting for a 3bhk around South Bangalore and with popular builders(Prestige, Brigade etc) I notice 1.5-1.6cr range for 3BHKs. And mid level car for 1cr? Where do we hold Octavias and all now? Low level?

Damn!!! I feel BPL now

Exactly why responses to this thread will be very subjective. It depends on what you come from, where you are right now, where you aspire to be, the circles who move in etc. There are parts of the country where a 10 cr apartment or 1 cr car will be considered average for the neighbourhood. In most other parts, that’ll be considered rich. Same is income. If you ask industrialists what they consider high, the reply will be very different from what you’d hear from an investment banker, and that in turn will be different from a software engineer.

[aniketi]

Person who gives something, whatever is possible to needy people from whatever he or she has, is the real rich person in this world. No matter how much money you have, if it is not of any use to others or society, then it's of no use.

[Divya Sharan]

If I'm happy, content and not in competition with anybody else (in true sense) - I'm rich!

[StarBoard]

My definition of Richness: When you can afford to do things you love.

In monetary terms: When your passive income exceeds all your expenses.

[mindshack]

COVID has definitely helped most to rethink the above.

Someone rich (by her/her definition) may not be wealthy. By which I mean, if you run hard to make enough money (income) and be rich but have no time to enjoy any of it. I have witnessed wealth in Bombay where people come to swim at 5 pm daily on a weekday (having time at 5 pm for self in Bombay is wealth, it's just not the swimming pool).

In a city like Bombay, there is no definition of rich. No matter what you make or assets you own, you may not feel rich at a social dinner table (business class<first class<private jet). Best to define your life, goals and make most of your time.

[1:1]

With no EMI running net assets of 16cr INR or 2Million USD.

15Cr in any investment generating a yearly cash flow of 6% interest rate post tax will give free cash flow of 5.44L. Put back 10% in your investment and you can be king of your time and activity.

Decide what you want to do with time, go for a road trip, rent out your fav car for your entire vacation, go on global tour, start a new company, start a NGO, dedicate a year of your time for research, dedicate a year for forest conservation (replanting), live a nomadic life in forest for as long as you want or may be just watch the sun rise and set in your pyjamas.

This according to me is being rich.

[Asish_VK]

Originally Posted by wildsdi5530

To be fair, the choices given are very narrow.

Assume a rich person will own a 3BHK house and a mid level car. In Bengaluru, a 3/4 BHK will cost 5-12 Cr. A mid level car will cost around 1 Cr (on-road). So we are talking of a monthly EMI which is more than 8 Lakhs.

Money has lost its value and for people Cr doesn't really mean much. Even in the local buses, you find people dealing with crores on a daily basis.

Now real richness is just pease and contentment which can be found within oneself.

Holly molly. I think I was living under a rock for some time

My stupid brain still thinks 3BHK in Bangalore is about 1-1.5Cr, Mid level car is a Honda City/Hyundai Creta < 20Lakh.

Looks like my target bank balance at retirement has to be increased exponentially

[dicor]

Adani once was richer than Ambani, then Ambani become rich again.

Jeff Bejos is a rich man in Ambani's eyes and Elon in Jeff's eyes.

I and my wife combined earn 1 cr per year(without tax deductions) but my organization's CEO is a rich man for me, I am a rich man in eyes of my household help.

Before 40, the feeling is money can buy everything but in the last, we all realize that - "Health is Wealth".

Despite having so much money, I live in frequent pain due to multiple health issues.

My father owns assets worth > 10 crores but his pain point is that he sees his grandson once a year for a few days.

All that matter is peace and happiness.

YOU ARE RICH:-

• If you have a bed to sleep in and food to eat
• If you have a roof to live in and clothes to wear
• If you are able to sleep without much effort
• If you have no EMIs to pay.
• If you are able to pass on a stool every morning without pain
• If you can climb stairs and you can walk
• If your family and friends love you unconditionally.

Believe me.

[srgntpepper]

Rich is obviously subjective.
But the answers should be as objective as possible.

To being rich means not having to work to live a sufficiently good lifestyle. This doesn't include all whims and fancies (i want a McLaren). But reasonable ones.

Lets say you need 1cr pre-tax a year to live this lifestyle. You need thave enough assets to make this. Assuming a 10% annual return. That makes it 10 cr of assets. But over time inflation will kick in so you need to grow that asset corpus. After accounting for inflation and expansion in std of living, let's say your base needs to grown by 10% annually. Ie you need another crore in returns. So your invested asset base is now 20cr. You make 2cr, spend 1, reinvest 1.

This doesn't include non-earning assets like a 5-10 cr flat in bombay.

This is just a generic methodology, real case will vary for everyone. But this is my personal goal..this will allow me to do what I want, travel, invest, pursue personal interests etc without worrying about making a mistake that leads to financial meltdown.


A corollary thread to this would be given a certain level of income what should be the percentages one should allocate to financial investments, buying or renting necessary assets like a home, and to discretionary spending like cars, travel, entertainment, bling like watches clothes etc