Team-BHP > Shifting gears


View Poll Results: What would you consider rich?
Assets over 1 crore 30 4.65%
Assets over 5 crores 100 15.50%
Assets over 20 crores 184 28.53%
Assets of 100 crores and beyond 125 19.38%
Income of 5 lakhs per month regardless of assets 67 10.39%
Income of 5 lakhs per month AND assets of at least 5 crores 244 37.83%
Multiple Choice Poll. Voters: 645. You may not vote on this poll

Reply
 
101,363 views Search this Thread
Old 1st April 2023, 03:19   #91
BHPian
 
Guru_GPS's Avatar
 
Join Date: Nov 2019
Location: Mysuru
Posts: 84
Thanked: 83 Times
Re: What would you consider the threshold for being called rich?

I have voted for the second option - 5 Crores .

Basically, my definition of being rich is a collection of:
A nice 30X40 home built in a 50X60 plot [nice amount of setback all around]. 1-Storey, 2-Storey, does not matter.
2 Crores in the bank, 1 or 2 Crores in Gold/Shares, enough cash to buy any car I wish. To be able to buy anything by paying full amount upright is also a symbol of richness, IMHO.
Guru_GPS is offline   (2) Thanks
Old 1st April 2023, 11:14   #92
BHPian
 
Old_Salt's Avatar
 
Join Date: Mar 2017
Location: Delhi
Posts: 133
Thanked: 817 Times
Re: What would you consider the threshold for being called rich?

Well, as I have recently finished reading Psychology of Money, so I don’t want to be called rich, but wealthy

As Mr Housel says,
We tend to judge wealth by what we see, because that’s the information we have in front of us. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Instagram photos.
Modern capitalism makes helping people fake it until they make it a cherished industry.
You can laugh, and please do. But the answer is, yes, people do need to be told that. When most people say they want to be a millionaire, what they might actually mean is “I’d like to spend a million dollars.” And that is literally the opposite of being a millionaire.
We should be careful to define the difference between wealthy and rich. It is more than semantics. Not knowing the difference is a source of countless poor money decisions.

And then best part of the chapter was applying it to exercise and health. And this really hit me.

Exercise is like being rich. You think, “I did the work and I now deserve to treat myself to a big meal.” Wealth is turning down that treat meal and actually burning net calories. It’s hard, and requires self-control. But it creates a gap between what you could do and what you choose to do that accrues to you over time.

Most people want the freedom to buy, and buy and buy.

The danger here is that I think most people, deep down, want to be wealthy. They want freedom and flexibility, which is what financial assets not yet spent can give you. But it is so ingrained in us that to have money is to spend money that we don’t get to see the restraint it takes to actually be wealthy. And since we can’t see it, it’s hard to learn about it.

Last edited by Old_Salt : 1st April 2023 at 11:16. Reason: Spelling
Old_Salt is offline   (7) Thanks
Old 1st April 2023, 11:25   #93
BHPian
 
Join Date: Sep 2021
Location: chennai
Posts: 130
Thanked: 258 Times
Re: What would you consider the threshold for being called rich?

I wouldn't go philosophical on this thread about happiness and comfort, as I believe the OP is trying to get to some crowd sourced numbers to compare.

Rich in subjective terms and statistical terms would have different connotations.
Again, leading a comfortable life is not being rich.

If I am dealing in subjectives, to support my current *comfortable* lifestyle I *think* I need 2 Lakhs per month ( @5%, that is ~ 5 Cr corpus generating that money ) apart from a home and a car or two fully bought and paid for.

Additionally, I would be comfortable if I have some financial instruments that I can dip in, to the tune of ~ 1.5 cr for that unexpected expense ( be it luxury purchases or medical emergencies ) at a higher Risk/reward category which may self-fix the hole over a period of time assisted by the put away money from monthly income.

To consider myself as more than comfortable, again subjectively, I would like to have another 2L pm just for my domestic incidental expenses like regular outstation trips/fuel/stays, so that even if my regular life could be categorized as decent, but I can travel rich!
If one is eyeing International trips, then better make that 4L pm.

So, I also roughly get the 12.5 cr that was referred earlier to be comfortable or > 15 cr ( of revenue generating fiscal assets ) to be more than comfortable ( which for me is being rich, as I cannot think beyond this!)

If one takes the route of satisfying a portion of that monthly income by building rental assets, then your asset value may increase and you may get 2-2.5% returns per anum, but would increase your asset base/ corpus numbers.


If I am talking about that rich where I can just go ahead and buy a ~1.5 cr home without batting my eyelashes, I may need 15-20 times that financial corpus - 25cr. to 30cr.

Again, these numbers are highly subjective based on current lifestyle and continuing it or improving on it.

Statistically, to get into that 5 % ( 1 percentile would be super rich ) would mean having more 10s/100s of crores and varied business interests.
careind is offline   (3) Thanks
Old 1st April 2023, 12:21   #94
BHPian
 
Join Date: Jan 2018
Location: Gurugram
Posts: 83
Thanked: 457 Times
Re: What would you consider the threshold for being called rich?

Good thread, but only bone of contention is the denomination is in currency.

Voted for Income of 5 lakhs per month AND assets of at least 5 crores as per current status.

Currency is paper now, as governments world over can print it as much as they like.
In last 3 years money printed the world over is higher than ever printed in entire history of mankind.

The biggest scam in the world is paper money which does not have any underlying asset, which used to be gold earlier.

So it would be better to quantify in real terms.

-If you can drive the car you love and desire without caring about the petrol bills or EMIs or maintenance, again you are rich

-If you can afford and cherish to eat good quality food like best basmati rice, alphonso mangoes (costs 2K a dozen) without have to worry or think you are good.

-If you love to travel and can go to any country without worrying about the budget hotel
costs you are rich.

-If you can afford to stay in a fancy villa or apartment with all amenities that you need you are rich.

Being rich means having the peace of not being bothered about costs while fulfilling what your heart desires.

In todays financial terms 5 lacs income is just enough to lead a comfortable life, send your kids to a good school, eat and travel, if you do not have any EMIs, Loans, Contingency, Health costs. You will not be able to save or build assets out of it without compromising on living. So here comes the 5 Crore assets to provide you with the cushioning and the backing needed so that the income is for expenses only and not for building assets or wealth.

One needs to be careful that the 5 crore worth of assets are real, and at least appreciate enough with the inflation or after 10 years it might be obsolete.
xway is offline   (4) Thanks
Old 1st April 2023, 12:52   #95
BHPian
 
charanreddy's Avatar
 
Join Date: Nov 2013
Location: Bangalore
Posts: 712
Thanked: 2,052 Times
Re: What would you consider the threshold for being called rich?

Voted for 20cr+ as it the closest to my target number.

There is no end to a heart’s desire and no guarantee that once a certain aspiration level is reached, people automatically become happy.

I define rich as not needing to work for a steady income to maintain a reasonably plush standard of living. In my view this means :

- fully paid for house of a reasonable size ( 3000 sqft duplex built on a ~4000 sqft land )
- a reasonably comfortable car : Toyota Camry or a Škoda Kodiaq. + beater car : Honda city ?
- reasonable creature comforts : your standard AC, appliances etc.
- enough corpus to fund kids education ( 2 cr per head)
- net assets and investments generating enough for monthly expenses where one does not have to check price tags for everything.. or travel at a moments notice or take an international vacation every year.

I may still end up working but just because of interest and not for the cash..

At the end I believe being rich is as much a state of mind as it is having the assets. I have seen lower middle income class families being more content than Uber rich ones , difference being the former don’t get stuck in a perpetual rat race for the aspired standard of living only to see that the life has passed them by..
charanreddy is offline   (1) Thanks
Old 1st April 2023, 13:01   #96
BHPian
 
Join Date: Dec 2007
Location: hyderabad
Posts: 33
Thanked: 43 Times
Re: What would you consider the threshold for being called rich?

There are very few people in human history who could be called rich. Its subjective description, however I think most people could be wealthy. For me being wealthy is,
1. Owning a place to live
2. Having understanding partner
3. Having needs fulfilling income in sickness, health or death.
alisajid is offline   (3) Thanks
Old 1st April 2023, 13:07   #97
BHPian
 
Join Date: Oct 2018
Location: Various
Posts: 107
Thanked: 352 Times
Re: What would you consider the threshold for being called rich?

Some absolutely mind boggling responses on what is considered ďrichĒ.

I think if you can live the way you are currently living and improve upon it by a small percentage every year, without having to work for it, and instead letting money work for you, then you are rich. Absolute numbers arenít worth the pain.

For example, someone said a C-class car was mid level. For them, probably being able to buy the next level (I donít even know which one) would be the target. While I donít inherently disagree with the target, if youíre actually having to work for that, then youíre not rich.

Being able to buy time (in a relative sense) makes you rich. Once you have enough money to not worry about medical emergencies, inflation, cost of a trip abroad, while you donít chew off the principal - you are rich.
pandey.jai is offline   (9) Thanks
Old 1st April 2023, 14:02   #98
Senior - BHPian
 
GrammarNazi's Avatar
 
Join Date: Apr 2013
Location: Bangalore
Posts: 1,406
Thanked: 3,436 Times
Re: What would you consider the threshold for being called rich?

Say you're stranded in a desert, parched & desperately thirsty for water, soon may die. Someone offers you a glass of water - the price you can be made to pay, is the threshold of what you consider being rich. India has seen many many painstakingly created & well managed riches turn to dust. Sometimes over a generation, sometimes over a few years, sometimes over just a blink.

The first 40% of being "Rich", is to have a loving family, regardless of even major differences in opinions, if unhappy when without one another & calmly satisfied by the others mere safe presence. (The affection should be such that one would strive for anothers goal - no matter their opinion).

The next 20% comes from health. A healthy person has "n" number of wishes, an unhealthy/unwell person has most usually just one wish.

A very important 30% comes from financial well being. How one prudently balances their obligations/liabilities & assets. If human life is about satisfying senses, then doing so requires money.

EoD The balance 10% is gods wish. Luck.

My genuine request to OP / anyone, is that you're feeling depressed - seek help. You're in India - Many people are / have been poor & can tell you what really should matter. It is what got us through the past 75years of poor governance, 200 years of colonialism before that & even the atrocities of attackers before that. Oftentimes even the most random / underprivileged poor person may clearly tell you how life works in our culture. Irrespective of religion.

EoD If you have all of the above to a varying degree that crosses 35-40%, you're rich.

Last edited by GrammarNazi : 1st April 2023 at 14:10.
GrammarNazi is online now   (3) Thanks
Old 1st April 2023, 17:47   #99
BHPian
 
Join Date: Jul 2014
Location: Hyd
Posts: 101
Thanked: 218 Times
Re: What would you consider the threshold for being called rich?

I was laughing (The laugh portrayed by the zamindar character in Muthu by Rajinikanth towards the climax of the movie) at the Poll Options and many responses in this thread. Richness is never to be measured in tangible materials and worldly pleasures.

You are super & ultimate rich if you are 'Healthy', 'Happy' & 'Content with what you have'. That is it. Measuring wealth/money as parameters of richness is a bottomless cesspit.

Quote:
Originally Posted by dicor View Post

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.
@dicor...your words are wise and the wisdom the world needs.Also, adding to your list:
  • If you can eat and digest your favorite food without any side-affects.
  • If you are able to cleanup after yourself (you know what I'm mentioning here).
  • If you have at least one trustworthy friend/relative who you can trust with your life unconditionally. (Not to create a political turmoil here...but this is what our beloved ex-CM JJ lacked in her life. She has earned crores, acres of land, and KGs of gold from her acting career, but what happened to her in last stages?).
I can go on with lot of intangible milestones one needs to have in their lives that are KPIs of real happiness. But that list not only depresses me but many of us and hence I'm stopping myself here.
G V Krishna is offline   (3) Thanks
Old 1st April 2023, 18:48   #100
BHPian
 
Join Date: Oct 2020
Location: Bangalore
Posts: 85
Thanked: 306 Times
Re: What would you consider the threshold for being called rich?

There is a saying in my language which roughly translates to

You are rich if you don't need to ask anything from anyone and you can help others in trouble.
raghukodali is offline   (13) Thanks
Old 1st April 2023, 21:50   #101
BHPian
 
Join Date: Jul 2020
Location: Bangalore
Posts: 186
Thanked: 297 Times
Re: What would you consider the threshold for being called rich?

My definition is “When one can maintain the same lifestyle on the post tax interest earned on investments without dipping into the principal”

Terms and Conditions apply:
1. No liabilities / debt / loan
2. Interest earned should account for inflation over the long term
3. Adequate health insurance
4. No projected capital spends like a new house
If any, then the current house (sell) should be able to fund the new one.

Eg: Corpus of INR 5 crore at 5% post tax returns should yield close to INR 2 lacs per month. Which (given the above) is a decent amount (definition varies from person to person) for making a good living.

It’s the big ticket item surprises like
1. Unaccounted for inflation
2. Major spend on healthcare

That throws most plans off the track.
MarutiGuy1977 is offline   (2) Thanks
Old 1st April 2023, 22:31   #102
BHPian
 
yashg's Avatar
 
Join Date: Jan 2022
Location: Mumbai
Posts: 213
Thanked: 982 Times
Re: What would you consider the threshold for being called rich?

I believe following conditions make someone rich

- Having a positive net worth
- Owning or ability to own the primary residence, doesn't matter if it's on loan as long as the net worth is positive
- Inflation doesn't affect current lifestyle and consumption level
- Not having to compromise on the quality of healthcare or education for want of money

I guess it all boils down to your ability to deal with inflation and sudden financial shocks like a medical emergency. If rising prices does not force you to make changes to how and what you consume then you are rich. It does not mean rich can't be frugal. In fact being frugal is how one stays rich. It simply means you don't have to stop consuming something that you were consuming earlier because it became expensive. Being rich doesn't mean being spendthrift. Now everyone who spends lavishly is in fact rich.

There are rich and then there are super rich. Super rich are those whose income is not related to the amount of time they work. These are either business owners or people with enough investments and assets that even if they stopped working, their wealth will continue rising.

Anyone above net worth of 100 crores is ultra rich. They can have the best of life. They hobnob with other ultra rich people.

People above the net worth of 1000 crores, make the rich lists.

Here's an interesting write up about the classification of wealthy people in terms of dollars. Worth a read.

https://www.reddit.com/r/AskReddit/c...mment/cnnmca8/

Last edited by yashg : 1st April 2023 at 22:32. Reason: Fixing the link
yashg is offline   (2) Thanks
Old 1st April 2023, 22:37   #103
BHPian
 
Join Date: Nov 2020
Location: Chennai
Posts: 52
Thanked: 152 Times
Re: What would you consider the threshold for being called rich?

Guys, I think a lot of us are losing the point by only talking the philosophy related to money, and how wealth is measured in terms of happiness and health and not in terms of money. That is indisputable, I am not going to sit here and contest against it, but I think it is futile to bring it up as much when from the poll one can deduce the intended question is on money. Materialism sadly rules us, whatever the level may be.

For me personally, I would say assets that are worth 10-20 crores that can bring me a monthly income of 3-5 lakhs without me having to work, and a 2000 sqft flat in a lovely residential neighbourhood for me and my family to reside in would be ideal. I would have enough to cover healthcare and emergencies, I would have enough to cover graduate and post graduate educations, and I would be able to afford some nice things and some great vacations. But most importantly, I wouldnít have to work, as my assets would be able to return the monthly income I would have gotten had I been working. I just donít want to work you guys

Also, a holiday home in the hills would be great, not going to lie.
sunnysideup_ is offline   (2) Thanks
Old 2nd April 2023, 02:39   #104
BHPian
 
Slick's Avatar
 
Join Date: Nov 2007
Location: Mumbai
Posts: 384
Thanked: 609 Times
Re: What would you consider the threshold for being called rich?

Great thread and interesting to read different perspectives.

I am reading this more from a materialistic point of view and not the spiritual one, as some have expressed.

I have chosen the 20-25Cr bracket, as with today's inflation and things getting tighter it seems 5Cr, though comfortable, cannot be termed rich, from my middle class eyes.

Also I feel if one owns assets worth 25Cr, sufficiently monetized, They wouldn't have to work/ earn anything else. I would say that is rich.

Anything above that, would not make a lot of difference to me, heck 10Cr + would not make much difference.

- Slick
Slick is offline   (1) Thanks
Old 2nd April 2023, 10:29   #105
BHPian
 
Join Date: Aug 2011
Location: Eindhoven
Posts: 517
Thanked: 743 Times
Re: What would you consider the threshold for being called rich?

Sorry for going philosophical again, but where does the term rich end? As mentioned multiple times, a person living on the street will see a person going on a cycle as very rich. Its all relative. When I was in college in the early 2000s, my cousin had just joined work in IT and was drawing around 30,000 INR. I compared myself to him, thinking how lucky he is to be very rich with all that money. When i started working, I compared myself to my senior colleagues, wondering how lucky they were to earn Rs.40,000, when I was just earning 20,000. They were very rich. Cut to 2020, with both of us working, with 2 houses in Bangalore 1 worth 1cr and another 50L and 2 cars. We bought 2nd car with all out cash. All the houses are completely paid off. One house earning us rent too. My wife was earning double my salary. Our bank balances were increasing. But I was still comparing myself to some of my friends, who were earning much more than us together. They were "rich", not us.
One fine day, my parents decided to transfer a lot of the property and gold they had between my brother and me. These were worth a some CR for each of us. Some of these earn a lot of money every month for our parents and they will continue to do so. Suddenly did this make us now far "richer" than whoever I compared with earlier? Should I now review my assets/liabilities and think of myself as rich, because from that day, I had become a multi kodeesvaran?

Cut again to late 2021, we emigrated to the Netherlands, where it is said at-least, that there are no poor people. Everyone has money, at-least to have a home, food, clothing, education, security. The money we make here is multiple times more than what we made in India, but so are the expenses(relatively). Am I "richer"? Sometimes think, if we were to get the same salary(literally) in India, we would be very rich, but would really that be true?

I doubt whether Elon or Gates call themselves rich. We do! To answer the question(what would I consider...?)IMO its all relative, or it simply doesn't end. Again, sorry for going philo.
aneezan is offline   (3) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2023, Team-BHP.com
Proudly powered by E2E Networks