New Definition of Wealthy

Discussion in 'Where to Buy' started by sash, 13th Sep, 2019 at 3:17 PM.

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  1. sash

    sash Well-Known Member

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  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    How does the title "Emperor Sash" appeal?
     
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  3. sash

    sash Well-Known Member

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    Nah mate...I am getting out of some property remember...putting more into shares....

    But it is interesting...we are returning to a time of feudalism.....;)
     
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  4. Hayes

    Hayes Well-Known Member

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    That's why we are all here right?
     
  5. spoon

    spoon Well-Known Member

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    20 years ago there was a book titled The Millionaire Next Door saying the same thing But of course property without CG can be a pain in the a...
     
  6. conork

    conork Active Member

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    The definition of wealth = your assets - your liabilities...
    I didn't see a new definition proposed...
     
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  7. kierank

    kierank Well-Known Member

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    I will NEVER be wealthy - I am married :eek:.
     
  8. spoon

    spoon Well-Known Member

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    You’re wealthy as long as you stay married. Otherwise you’ll be 50% wealthy or worse. :D
     
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  9. Morgs

    Morgs Well-Known Member Business Member

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    Agreed.. however am I completely off the page or wasn't this always the way wealth was measured.. that wealth is based on assets not income? Or did they just need to do a comprehensive university study to prove that...

    Presumably owning businesses falls into that top tier too.
     
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  10. sash

    sash Well-Known Member

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    Yep that always happened with business.....looks like they are doing the same with resi...
     
  11. Harris

    Harris Well-Known Member

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    “....While requiring further empirical verification, we believe that our proposed five-point asset-based class scheme will go some way in explaining how the current structural mutation of capital is central to the production of a new social structure of class,...”

    only a professor would write this so it's clear as mud...

    I always thought 'wealth= assets minus liabilities' but this mob seems to be reinventing the wheel...
     
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  12. Sackie

    Sackie Well-Known Member Premium Member

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    Financial wealth is net worth. Simple.

    Everything else is commentary.
     
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  13. kierank

    kierank Well-Known Member

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    ... and Net Worth is a lot more than just financial wealth :p.
     
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  14. Sackie

    Sackie Well-Known Member Premium Member

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    Unless your total worth negates your financial net worth :p
     
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  15. spoon

    spoon Well-Known Member

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    I once heard a definition on "academic research" - stating the obvious after carrying out a lot of academic work! :cool:
     
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  16. MikeyBallarat

    MikeyBallarat Well-Known Member

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    Agree completely, a high income means nothing if you’re squandering it due to lifestyle inflation.
     
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  17. Sackie

    Sackie Well-Known Member Premium Member

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    Yup. Same as having a portfolio worth 15 million with $14,750,000 debt. Not wealth at all.
     
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  18. Redwing

    Redwing Well-Known Member

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  19. MWI

    MWI Well-Known Member

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    As the saying goes, "It's not what you earn but what is left and what you do with it that matters".
    Sometimes dollar saved is dollar earned.
    IMHO, I always thought that income was not financial wealth, you could lose your income tomorrow and then what? Imagine having bad luck like car accident and can no longer work in ones profession, no insurance, what then?
    Hence why assets that generate passive income have always been considered as financial wealth instruments, perhaps academics who wrote that article didn't think that way...?
     
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  20. sash

    sash Well-Known Member

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    Its also amazing how many people who also fake that they are financially secure.

    I see this on what people post....on what they convey to others. I know a couple of people on here and outside...who really have ;little but create this illusion of wealth. I reckon that is pschological illness.... ;)

    Having said that...you also need to have the correct mindset to also leave the rat race at some point. Some people keep going ...when they have enough but dread their jobs.