How hard is it to be rich?

**Greebo** · 09-07-2009, 11:55 AM

This is really a two part question:

1) What is "rich"?

2) What does it take to become rich?

I, of course, have my own opinions on the subject, but I'm really interested in what others think before I present my own ideas.

**Thevail** · 09-07-2009, 02:05 PM

1) What is "rich"?

I think probably everyone has their own definition of "rich", which is why it's possible for 99% of everyone to have the same goal.

My definition of "rich" is a total lack of financial worries.

To be able to "help" your friends and family when something unfortunate happens like an illness, or a job loss.

To be able to eat what you want, when you want.

To just pay the bills the moment they come in without having to check the current bank balance, just know there's enough.

To be able to buy freinds and family the gift you actually want to give them for holidays and birthdays, rather than what you can afford.

To owe not one penny to anyone for anything other than the usual re-occuring monthly bills.

To have no worries about your ability to cope with those unexpected expenses like an appliance going haywire, or somebody hitting your car in a parking lot.

2) What does it take to become rich?

Focus, focus, focus.
I'm not saying you need to turn into a crazy miser, but you do have to be willing to pay attention to your financial life on an ongoing basis. How much do you owe? to whom? At what interest rate? For what? What are your assets, are they earning interest? What will all this do to your taxes?

Also you have to actually want financial security to be one of the situations in your life. I know that sounds kinda nuts, who doesn't right?! But a lot of times it's so much easier to blame the problems in our lives on our finances than it would be to face those problems head on as the results of our own actions and choices. And most people (myself included) have a lot of anxiety about how their life would change if the DID finally get "rich".

How will you deal with your relatives? How will you cope with deciding not to fund your uncle's crazy get-rich-quick scheme even though you'd never miss the $1000.

The ability to question your own financial behavior.
Is that thing you want to buy.. a good deal? Will you really use it? Will you use its full capabilities? Is there a less expensive alternative that will work just as well? What is the lifetime cost of the item? (life time cost of a suit includes dry cleaning, lifetime cost of a puppy includes...)

A plan
We all know that the best laid plans rarely survive contact with reality, but, without a 6 month, one year, and five year plan.. it's going to be awfully hard to end up where you want to be. Without a plan and a goal, it's too easy to wander all over the place rather than moving steadily forward.

Patience
I'd love to win the lotto, or inherit from some obscure rich relative I didn't know I had, who wouldn't? But those scenarios are unlikely in the extreme. So I feel like I'm going to have to do this the hard way. One measly dollar at a time. And sometimes that gets really frustrating, especially when life hands you a big double handful of one step forward and two steps back.

**never2late** · 09-07-2009, 08:03 PM

It may sound cheesey to some, but I feel the most "rich" when I'm able to give money away at my discretion, and have the cash to do it. I've always been very supportive of our church, local food pantry, and countless other organizations, but I really didn't have the money to give and consequently ended up charging other necessary things, or even charging toys to give to Toys for Tots.... you get the drift. So I would feel good giving, but feel sick inside knowing I really couldn't afford it. I have really tightened up the budget... still give to our church and local food pantry though. I know there will be lots of time for me to give when I'm in a better place.

Last month I was in line behind a woman at WM who had a gazillion coupons, but in the end was short almost $2 to pay her bill. I leaned over and handed her $2. She was shocked and a bit embarrassed, and I just told her quietly "I hate when that happens to me." Best $2 I gave away all year.

**Telephus44** · 09-07-2009, 09:42 PM

I consider "rich" when you have a significantly higher amount of disposable income than the general population. Because of various COL areas, the amount can be different from one place to another.

To become rich, I believe that you need to be particularly driven, and you need to have a plan. For most people this revolves around some for of entrepeneurship (sp?), but it doesn't have to.

Personally, this is one of my goals, although I don't anticipate reaching it for another 25-30 years. My goal is to have $50,000 in today's dollars for discretionary income in retirements (for both DH and I, so we'd get to spend $25,000 each any way we want to). I have been working on this since 2003.

**Greebo** · 09-08-2009, 05:49 AM

All very interesting answers so far.

What is rich?
A lot of you would look at our income, see six digits, and think, "Wow, they're rich!". A few years ago, nothing could have been further from the truth, and you can see from my signature tracker a sense of why, although it was far, far worse in 2006.

To me, Rich isn't an income level. Not anymore. I know too many broke people who make more than me.

To me, Rich is also not JUST making more than you spend. You can't ever BE rich if you spend more than you make, but if the income you make depends on you to make it, then you're not rich. If you can't maintain your lifestyle without a job to support it, you're not rich.

My parents - my Mom in particular - are good with money. They never made more than $25k a year in any year, as far as I know, but they always planned for the future, they never carried debts as far as I know (except for a mortgage), and today in retirement their income is higher than it ever was when they were working. BUT - a major chunk of that income is Social Security, and while they absolutely deserve to receive it because they paid into it, as long as one depends on Social Security, I still can't consider that RICH. Well off, certainly - they've done VERY well - but not Rich.

So to me, RICH is:
- Never having to depend on a job for an income
- Not having to depend on charity (Gov't sponsored or otherwise) for an income

In other words - whatever your lifestyle, IMO Rich is having enough passive income from investments to cover expenses and put a little more aside each month. If that means $30,000 a year coming in from investments and you live on $29,000 - that's rich.

What does it take?
One thing above all else - self discipline.

I'm a living testament to how if you have none, you'll never get rich.

Self discipline to live below your means.
Self discipline to be always learning and educating yourself.
Self discipline to live long term.
Self discipline to pay for the future before you pay for the present.
Self discipline to say no to simply following impulses.

It sounds simple - but I think we all know it's a lot harder than it sounds. It's an internal battle everyone has to master. But if one can get control of ones self, that self-discipline can make everything else happen.

**a.nonymous** · 09-08-2009, 07:10 AM

Interesting take on the topic from everyone so far. Thanks for that.

I always find it difficult to define "rich". As with almost everything in life, a definition depends on the personal point of view. And especially in money matters, for any one person, those points of view change constantly over time.

Heck, when I was a student and moving abroad to South Africa to finish my studies there, my uncle handed me an envelope containing €10000 in order to "get yourself set up properly with a car and all those things you'll need".
I felt incredibly rich and even more paranoid to walk around with 10k in cash bringing it to the bank. Those were probably the most intense 200 meters (in thrills per meter) I have walked in my life - maybe apart from the aisle dash on our wedding day.

But back on topic:
Rich to me, as of today, is to earn enough money, from fairly stable sources including full time jobs, to pay all bills and still stash away roughly the same as spent for future use.
Greebo's definition of rich is what I would consider wealthy. If your nest egg is so big that you can live off it perpetually without having to add to it.

In both scenarios, it comes down to what you want to live on. How extravagant you want to live. Sure, it's easy to say that I could live on $1 million if I didn't raise my life style. But it is, in my opinion, just as foolish to assume that I wouldn't raise my life style if I had the means to do so.

So, what does it take?
Discipline above all. But that is only one part of the equation. No matter how you plan on getting rich/wealthy, you will always need some good fortune to get there - even if 'good fortune' only expresses itself by having no bad events happening on your journey. Health issues, accidents, government idiocracies... there are so many factors which we can only influence indirectly (if at all). We should be grateful for every stretch of time where things go as well as - or better than - planned or expected.
Discipline is the key element for things we can influence directly, where fortune is a virtual personal measuring unit to describe how our uncontrollable environment has supported us in or denied us from reaching those goals.

For the latter, it doesn't even matter whether you attribute it to God, karma, destiny, or any other name you chose to give it. We're not fully in control, that is a fact we have to live with.

**Preston** · 09-08-2009, 02:39 PM

1) What is 'rich?'

Being able to do what you want because you don't have time obligation to do things you hate. You don't need to worry about the next mortgage payment clearing because you paid it off and are living off of what you make with your hobbies.

It's not sweating a job you don't like just to get by... knowing that if you were handed a pink slip tomorrow you could just move onto the next chapter in your life without having to carry the burden of the one that is ending.

It is seeing a family member in trouble and not having to flinch to help them out.

It is in finding who you are, and what you were meant to do.

It is seeing the world, experiencing all it has to offer, and playing fairly.

It's about doing your part to help your community and fight for what you believe in.

It's not in material possessions, it's in being satisfied with who you are.

We make $60000 a year. Once we are out of debt this will be plenty to us. If I somehow won a million dollars -- we probably would be set for life.

2) How do you become rich?

Learning to be comfortable with who you are

Discipline

Do onto others as they would do onto you

Be honest, even when the truth may hurt, as denial is more expensive

Do things because you enjoy them, not because you have to

Get to know your neighbors and live as a viable part of your community

Do not take on debt

and lastly...

Let your money work for you, don't work for your money.

**firefly615** · 09-08-2009, 06:08 PM

So to me, RICH is:
- Never having to depend on a job for an income
- Not having to depend on charity (Gov't sponsored or otherwise) for an income

In other words - whatever your lifestyle, IMO Rich is having enough passive income from investments to cover expenses and put a little more aside each month. If that means $30,000 a year coming in from investments and you live on $29,000 - that's rich.

I think this is an excellent description of "rich." But remember that "rich" can also be a state of mind. I know a number of people who have more than enough money to live on, but are poor in spirit because of their general view of the world. They have a negative and miserly (note, definitely different from frugal!) view of the world.

I may not be rich in the traditional sense, but I can pay my bills and save some money each month, I have a healthy, happy family, and I have a job that I love and that serves others. I am very rich indeed!

**shortstack** · 09-08-2009, 06:11 PM

I would like to add to the list of what it takes to get rich:
If you are married, a spouse that shares your vision. It would be extremely hard to attain "being rich" with a spendy partner who does not share your views and the same discipline.

**Preston** · 09-09-2009, 08:27 AM

Originally Posted by shortstack

I would like to add to the list of what it takes to get rich:
If you are married, a spouse that shares your vision. It would be extremely hard to attain "being rich" with a spendy partner who does not share your views and the same discipline.

My MIL just told me she can't believe my wife and I are so in tune with finances. I honestly don't know how you couldn't be. Although we both have our splurges, they are usually within reason.

**mommy4ever** · 09-09-2009, 10:31 AM

Rich to me, it would be mortgage free. Just having monthly bills, we could live easily on a part time income. Just not having that bill every month would be a weight off my shoulders. We'd then be able to live on less the 1/2 of dh income and invest ALL of mine and the rest of his. THAT would set us up very nicely. We are working toward that.

But really rich is being able to live on less than you make and have money in the bank to live on should you no longer work. So we aren't there, but we are working on it. We're a work in progress.

**vickilynn** · 09-10-2009, 07:14 AM

At first I thought oh that must be really hard, then I realized I was thinking by the world's standards. Don't want to sound preachy but it is very simple to be reach when you have the King of Kings as your Father! Count my blessings takes so long....so just let me tell you it's a joyfilled life and it is so rich. Thank you Jesus!

**nodmicks** · 09-10-2009, 08:46 AM

Originally Posted by mommy4ever

Rich to me, it would be mortgage free. Just having monthly bills, we could live easily on a part time income. Just not having that bill every month would be a weight off my shoulders. We'd then be able to live on less the 1/2 of dh income and invest ALL of mine and the rest of his. THAT would set us up very nicely. We are working toward that.

But really rich is being able to live on less than you make and have money in the bank to live on should you no longer work. So we aren't there, but we are working on it. We're a work in progress.

This pretty much sums up my opinion too besides the pt income needed. I do know a few people who fit rich by this definition. They all have a few things in common.

1. they started in their early 20's.

2. have always been frugal

3. have no children.

4. Have never had bad consumer debt

Two of the couples I am thinking of retired before they were my age ( I'm 39)

I also know a few very wealthy people that may have a lot in the bank ( over a million) and 500K incomes per year~ but could not quit working long enough to fit that definition of rich for long because they have 7000 mortgage payments a month, payments on cars bigger than our mortgage etc.

At the rate hubby and I are going we will not be rich ever. However I have faith we will eventually have a comfortable retirement.

**pinecone** · 09-13-2009, 01:01 AM

Originally Posted by Greebo

1) What is "rich"?

I know you have asked a serious question but in our family we have a chuckle over this question.

When DD was in kindergarten she asked DH "Dad, are you rich?". DH said we are OK why? She replied "can you buy me a Crimp & Curl doll?" All through the eyes of a child.

piney

**miss_thrifty** · 09-14-2009, 01:09 AM

well coming from money grubby family members who because they were dirt poor and now think they need the big house and money in hand at all times, I think im rich and they aint.
why?
Because I have a guilt free conscious.
Have enough to buy dinners or theatres tickets when we can or visa versa
Rich means my health and my familys health
It does not mean- material value of any kind.
friendship, love, respect and honesty and having enough to pay bills, eat and go out once i awhile in rich to me.