[Lobogris]

Originally Posted by Jaggu

For an upper middle urban fellow like me I would say 20 Cr plus would be where I can say I am rich LOL. Right now feeling so poor!

Thank you! You are the first person to provide a clear answer.

Originally Posted by srini1785

According to GOI, anyone spending less than INR26.00 in rural areas and INR33.00 in urban areas is considered below poverty line. Everybody else is rich. So, i can say with some conviction that all in T-BHP are rich.

That is the threshold to be considered extremely poor where you would need free food from the government. It doesn't mean anyone above it is rich. It just means that the person slightly above is not in abject poverty. The number seems very low but keep in mind that it is on a per person basis and only includes spending on food and health. So a family of 5 (husband wife and 3 kids) could spend around Rs165 on food per day which was actually somewhat reasonable 12 years back. This metric has been thoroughly criticised by people without actually understanding the methodology. Back in 2009, Rs 5000 was enough for a family to feed itself at a very basic, poverty line level.

[DicKy]

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

Just having assets is not a guarentee for a good standard of living, nor is just income without any meaningful assets.

IMO, being rich would mean one owns atleast two loan free houses and a couple of rent giving properties.

Able to buy and run an S class, but choosing not to buy it. Can easily afford to buy their garage twice over.

Can take care of extended family in the sense one is powerful and rich enough to elevate their living standards.

Able to afford months long foreign vacations.

Freedom to wake up one day and do whatever they want, without fear of loss of income.

Their children will be able to have the same or better standard of living and never have their social standing/standard of living downgraded.

[warrioraks]

Very interesting question. As others pointed out, it depends on your frame of reference when it comes to materialistic wealth and pleasures. But if I discount that for a while, the single most important thing for me is time.

For me, rich ones are the folks who are able to spend time the way they truly want, with people they truly love without worrying about money and future.
Since they have enough resources with them, they are not bogged down by pressures to earn a livelihood. Instead they can choose hobbies or something interesting over the race to earn money.
They also have the privilege to pick their social circle so that any available time is spent with the cherished ones rather than worrying about making contacts for excelling in material life.

Having full control over how to spend one's time is how I would decide if someone is rich.

[dragonfire]

I'd call myself rich only the day I'd be able to buy anything without worrying about how much it costs. These days when I visit a supermarket I usually don't look at the price tag. Well, that is only for regular groceries and stuff. Ten years ago, I used to scrutinize each and every option available on the shelf and compare prices. But some day, if I am able to buy that dream car or that house I like, without worrying about the money I have in the bank, that is when I'd consider myself rich.

So, I went for the highest bracket available in the options - 100Cr.

ps: Monthly income does not make one rich. So, I'd ignore that factor.

[wocanak]

This is very much a "it depends" type of question, but the best I have come across is:

1. You can maintain your current lifestyle for the rest of your life, including all essential and non-essential expenses, without having to work.
2. Your current lifestyle is at least upper middle class level by developed country standards.

Point 1, is called financial freedom/early retirement in personal finance jargon.

[tchsvy]

Originally Posted by Lobogris

I wanted to have a discussion based on figures and thresholds rather than simply a philosophical one. So the kind of answers I am requesting are based on each person's needs, wants, philosophical bend and personal situation.

In 2012 I landed a job that paid me three times more than what I was hoping for, so my initial plan was to spend 1/3 only and save the remaining. But at the end of the year, I don't think I even had a month's salary in savings. My needs changed with my income. Your questions mention the needs and needs are dynamic, once considered luxuries become necessities. And that is why it is hard to put one's finger on a figure, at least for me. I am sorry if I have dragged this discussion into OT.

Originally Posted by Bhargav7

The article quotes a value of $77k for India. I guess that is far higher than INR 16 Lacs. It would be around 60-odd lacs.

The figures are adjusted to Purchasing Power Parity.


Slightly off-topic, but the best thing that the rich and powerful can buy is time. They get their chores done by others, saving lots of time, which they can devote to other works, to family, or whatever they wish.

[antz.bin]

I will call myself rich the day I can make 15lakh/month (or $20,000) steadily from a buisness.

The fact that I am salaried means I am not on the path to getting rich yet, but at least I have the problem defined and I have started getting myself on the right path.

The problem with salary income is that you can't pass it on to the next generation. You can pass on the assets but not the income. As long as you can't do that, you can never be truly rich.

Assets without cash flow are of very little use. You could stay in a 10Cr house but struggle to pay EMI on an Alto without any cash flow. What good is that 10Cr asset in improving your quality of life?

[Viju]

For me, being rich or wealthy cannot be defined by numbers. It all depends on one's aspirations and desired life-style.

I would consider myself wealthy if and only if:
(1) I can wake up tomorrow morning, decide not to work anymore and still have sufficient passive income coming in on a regular basis to let me lead the life I want to.

(2) I have sufficient funds saved up (or in insurance) to cover any emergencies.

[PreludeSH]

People will vote for the next higher slab compared to present income Guess thats also the goal.

[svsantosh]

Voted for above 20cr, because I am not there yet.

Interesting point to share, we all need to revisit this thread after 5,10 or 15 years. 2 things will be noticeable.

1) Did You get there?
2) Did Inflation take you there?

[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.

[udzgodfather]

To me being rich means reaching the stage where my words have more power than my pocket.

[roy_libran]

Selected - all of the above

Anyone who has the ability to vote on this poll, and has moved beyond the daily subsistence struggle is Rich, especially considering the sheer number of people in our country who are below that mark.

[SoumenD]

Originally Posted by wildsdi5530

In Bengaluru, a 3/4 BHK will cost 5-12 Cr. A mid level car will cost around 1 Cr (on-road).

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

[speedfreak01]

Voted for assets worth 20 cr and above. Because that’s where I truly feel one can rent out those assets if they are in the form of real estate and easily live on the rental’s. The good part about assets worth 20 cr is that it can be passed on to the next generation and they can hence continue the same living standard. Lot of our relatives have retired in their 50’s and are living totally on their rental income’s, with their assets ranging from 35-50 cr. Thats what I truly feel richness is about, about not having to worry about your business or job and just truly spending your time as you wish. Ofcourse our relatives who are rich and getting monthly rental’s between 15-20 L keep on complaining about how difficult it is to retain their tenant’s in the long term since the tenants keep on shifting if they find a lower rental property in the neighbourhood and them having to constantly renovate their properties for the next tenant which I feel is still a small problem to worry about as compared to those running a business or doing a job for their livelihood. Life is not fair