How much Money Do you need to be Rich?

Let me dive into it.

This is complicated question not because it’s hard to determine the amount of money you need to, quote Be Rich but what exactly do you define as Rich.

Oh, if you want to be in the 1%, this might come as a shocker to you but you probably already are and don’t even know it. In order to make it in the 1% highest earners in the world’s population you need approximately 30 thousands 2 hundred and 50 Euros, that’s little over $35000 or 2 million INR per year. That’s it. Congratulations.

What you really mean if you want to live the lifestyle you have seen in the movies. The big house, the sports car, the constant traveling and more. That’s where the math gets complicated because you will have to account for the country you live in, how much tax do you pay, how many children do you have, how much property do you won versus how much liquidity do you have.

Rich might even mean how health you are or how much stress-free life do you live.

The most simple way to look at it is you are earning 100 times the amount of minimum wage, you are most likely rich. That should be your benchmark.

When it comes to your lifestyle it does not matter that you are earning 100 times more if you are spending at the same rate. If you stopped working or an unfortunate event made it impossible for you to generate new cash you should be able to maintain your current lifestyle for at least one year.

Now let’s get to the juicy part. Let’s talk money. Some people might say $1 million is enough to be considered rich. Well in developed countries that’s not actually the case. Having a net-worth of $1 million will put you in the upper middle class in almost all prime countries in the world.

Did you know that over 5% of the population in the United States is technically a millionaire. 5 percent.

The goal you should be shooting for is somewhere around the ballpark of 15 to 20 million. For most millionaires $15 million is enough for you to have more than a decent life. That’s when you qualify technically as super rich. With $15 million you should be able to live more than a decent lifestyle anywhere in the world.

Something interesting I have discovered recently is that there is a bias to the amount of money people qualify as a rich. For the poor and the middle-class the amount is way lover while the rich think it’s a lot higher. A recent study showed that most rich people consider themselves rich only after they hit $100 million mark. Before that they know they are really doing really well but they don’t see themselves as rich. It’s probably the appeal of the big 100 number and the idea that if you get it, it could take care of your lifestyle and that of your children for their remaining lives unless someone screws up big-time.

So there you have it.