Rich, Super rich, middle class? Definitions please

I'm in Laos at the moment.

You're all far richer than you think.

 

If I had to just categorize and purely from an income perspective because I truly believe happiness is the true form of wealth.

Poor - You would rely heavily on government handouts. Would struggle to have any kind of Permanent PAYG income. Your definitely not going out for smashed avo.

Middle - Your working for the man (either PAYG soldier or your self employed thinking your a boss but reality is that time is your boss). You likely have a mortgage, nice car, nice things, enjoy the occasional smashed avo but ultimately your biggest stress is money.

Rich - Working is optional, you have no debt and own your own home, cars, boat .etc it’s very likely you own a big business and probably a bunch of properties. Spending of money doesn’t bother you, your definitely not looking at prices on a menu regardless if smashed avo is not in season.

Super Rich - Next Level, guarantee you own multiple businesses. Spend your time between your multiple 20m+ homes following warm weather. You own a few avo farms.

 

Ah yes I remember Packer, Triguboff and Rinehart talking about their avo farms.

 

About 2 months ago, I was at Beaumont tiles in auburn and Gerry Harvey walks into the shop to say hi to the store owner.

No suit, no entourage, just Gerry wearing basic office worker clothes, shirt, v neck jumper. I was quite shocked, I kinda expected a full power suit with a bunch of people following him around. How wrong I was.

 

Ha haa, yes, class, or "where did you go to school?"

Had that question fired at me plenty of times in my early 20's while attending country B & S balls and other functions. If it wasn't Joeys, Scotts, or any similar they turned on their heel and left me standing there, or spoke to me until they saw one of their ole school buddies.
Anyway, thats old money talking.

What we have now was all created by us. Self satisfaction that also makes us very happy. I know a lot of very unhappy people who attended those exclusive schools. But they are full of class of course.

 

So well said.

 

Read "The millionaire next door" this week. Very interesting insight into perceptions of behaviour of the wealthy vs reality.

Summary is that majority of millionaires are self employed or business owners, they don't blow their money on extravagent displays of wealth, they are focussed on both earning money but also preserving their money. They also tend to have more money than would be predicted relative to their income and make the majority of earnings in the form of growth in invested assets rather than cash flow.

The book also had an interesting calculator as follows:

Target Net Worth = Age X Annual Pre-Tax Income / 10

So for example if I was 30yrs old x $100,000 income/10 - I should have at least $300k net worth or above. Obviously there are some limitations to this, and it was written in the US some time ago, but I like that it doesn't ascribe an absolute value but rather looks at how successful you are at managing investments and growing wealth relative to your income.

 

Don't let the casual demeanor fool you.
The man is force.
Gerry threw a water jug at my mate in the middle of a board meeting a couple years ago. Luckily he ducked, but it did go through the window...
Apparently he doesn't like bad news.

 

seen one of the above let loose one day, the words that come out of their mouth made the roses wilt.

 

Wouldn’t you love to be super rich for one day??

What would you do?

Me, I would love the experience of going to an art auction money not an obstacle.....and buy a magnificent piece of art by one of the masters.

 

My 30 yo daughter has a number of billionaires as acquaintances. She’s done
the 250k euro a week yacht hire.
Front row on the start/finish line of Monaco.
Sitting next to the President of France at a Celine Dion concert.
Concert and After parties with Chris Martin
Monaco Casino outings
Drinking on the back of super yachts in the carribean and Mediterranean
$10,000 a night Aspen apartments
8,300 euro a night Positano apartment.
French Fashion week in Paris.
Private jet transport from country to country
Eating at the worlds 2nd most expensive restaurant (per se)
Etc etc
She finishes work in December and is looking forward to a normal life in the hills district and finishing the last two years of her science degree.

 

A person I know went from having a rather large yacht to eventually buying what could be called a mega yacht. Thought he was going to have so much more fun with the upgrade. Spent years designing it and having it built. One of the features of the new yacht was that it was so big, it could not be berthed in many ports like his old yacht. He needed a launch to get him to shore. To his surprise, when he went to a particular location, he found that he mixed less with people in the port, missed all the hubbub of people looking at his yacht, missed the social interaction, missed easily going to restaurants and eateries surrounding the port, and just felt decidedly lonely stuck on his boat a distance away from the port. Sometimes in life, it is the smaller things that make the difference. He has just put the yacht up for sale.

 

well if you look at the banks, i think you get a clear definition.

Westpac private starts at 20m Investable wealth. = 1%
having worked for a company that claims david beckham claims as a customer i can say thats about the right ball park for most 'investment" banks.

but for rest of the world

If you can stop working and maintain your current lifestyle is rich .

anyone who cannot stop working and maintains their current lifestyle is middle class

anyone below that is poor.

personally, i would re - word/ re write this, its doesnt paint a pretty picture.

 

I chose my words very carefully to leave people mystified and in some doubt about her profession. It is really the oldest profession in existence!

 

I take it you are on good terms & fine with her lifestyle?

 

Come on, any father (and mother) would be proud of their children when they reach the pinnacle of their industry. When they are much sought after, have a list of clients that reads like a who's who of the rich and famous, can perform feats that very few in the industry can.
The lifestyle is not for everyone, but with great skills and an immense amount of hard work, you can really go places and make your family proud.

When she comes back to Sydney she is for hire for $600 per night plus consumables for a group of up to 8.

 

"When she comes back to Sydney she is for hire for $600 per night plus consumables for a group of up to 8."

She must be a really good Musician/Artist to be on that sort of money ...

 

Chef

 

No thats my son;

 

Why study science then when you have reached the industry peak?