pretty easy. if you had a million in the bank at 4% return you’d have a income of 40K a year. if you could live on that income you’d be all set and not have to work.
so scale that up a bit, say 5 million in the bank at 5% return, that would be an income of 250,000K a year.
but the issue is people’s spending scales with their income/wealth, and most people spend more than they make so they are constantly seeking greater wealth.
Right, but someone living comfortably on the interest of £1m, are we really calling them part of the wealthy class, but not someone who works for a 6 figure salary and has more wealth than the first guy while living in more luxury?
it’s relative to where you live and your lifestyle expectations.
where i live people make 300K a year and feel impoverished. if you go three hours away, making 30K a year is a good salary.
I make 150K a year, so to 25 year olds working for 15/hr i’m rich. but to many of my peers i’m living in poverty because I don’t have ten million in the bank.
there are some objective measure, for sure, but people’s lifestyles are radically different. the MIT cost of living calculator for my city is like 80K, but most everyone who lives here would consider that a poverty level wage.
pretty easy. if you had a million in the bank at 4% return you’d have a income of 40K a year. if you could live on that income you’d be all set and not have to work.
so scale that up a bit, say 5 million in the bank at 5% return, that would be an income of 250,000K a year.
but the issue is people’s spending scales with their income/wealth, and most people spend more than they make so they are constantly seeking greater wealth.
Right, but someone living comfortably on the interest of £1m, are we really calling them part of the wealthy class, but not someone who works for a 6 figure salary and has more wealth than the first guy while living in more luxury?
it’s relative to where you live and your lifestyle expectations.
where i live people make 300K a year and feel impoverished. if you go three hours away, making 30K a year is a good salary.
I make 150K a year, so to 25 year olds working for 15/hr i’m rich. but to many of my peers i’m living in poverty because I don’t have ten million in the bank.
there are some objective measure, for sure, but people’s lifestyles are radically different. the MIT cost of living calculator for my city is like 80K, but most everyone who lives here would consider that a poverty level wage.