# Define “rich” **URL:** \ **Category:** General\ **Created:** [May 13, 2021, 5:10pm UTC](https://community.goactuary.com/t/define-rich/2915 "2021-05-13T17:10:29Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Serena](https://community.goactuary.com/user_avatar/community.goactuary.com/serena/32/10_2.png) [@Serena](https://community.goactuary.com/u/Serena)\ **Post date:** [May 13, 2021, 5:10pm UTC](https://community.goactuary.com/t/define-rich/2915/1 "2021-05-13T17:10:29Z")
Tangent from the extravagant spending thread. :popcorn: ---
**Author:** ![Serena](https://community.goactuary.com/user_avatar/community.goactuary.com/serena/32/10_2.png) [@Serena](https://community.goactuary.com/u/Serena)\ **Post date:** [May 13, 2021, 5:12pm UTC](https://community.goactuary.com/t/define-rich/2915/2 "2021-05-13T17:12:16Z")
Clair Huxtable said something like: Not rich is when you work for your money. Rich is when your money works for you. What say actuarials and friends? ---
**Author:** ![NormalDan](https://community.goactuary.com/user_avatar/community.goactuary.com/normaldan/32/1013_2.png) [@NormalDan](https://community.goactuary.com/u/NormalDan)\ **Post date:** [May 13, 2021, 5:13pm UTC](https://community.goactuary.com/t/define-rich/2915/3 "2021-05-13T17:13:39Z")
I think people rarely think of themselves as rich. It’ll always just be some % more than whatever the person has. But if I had to give an answer I’d say you can define it either through income or wealth. Through income rich is… \> 250k/yr family income Wealthy rich is … \> 2m net worth ---
**Author:** ![Rastiln](https://community.goactuary.com/user_avatar/community.goactuary.com/rastiln/32/77682_2.png) [@Rastiln](https://community.goactuary.com/u/Rastiln)\ **Post date:** [May 13, 2021, 5:14pm UTC](https://community.goactuary.com/t/define-rich/2915/4 "2021-05-13T17:14:24Z")
- Not worrying about what’s on sale or what’s a premium brand - Paying for others but not thinking of it as a favor - Not thinking about whether you can afford a mid-tier purchase ($XX-$XXXX) ---
**Author:** ![Rastiln](https://community.goactuary.com/user_avatar/community.goactuary.com/rastiln/32/77682_2.png) [@Rastiln](https://community.goactuary.com/u/Rastiln)\ **Post date:** [May 13, 2021, 5:18pm UTC](https://community.goactuary.com/t/define-rich/2915/5 "2021-05-13T17:18:30Z")
- Being confused why people have debt ---
**Author:** ![Mountainhawk](https://community.goactuary.com/user_avatar/community.goactuary.com/mountainhawk/32/82290_2.png) [@Mountainhawk](https://community.goactuary.com/u/Mountainhawk)\ **Post date:** [May 13, 2021, 5:18pm UTC](https://community.goactuary.com/t/define-rich/2915/6 "2021-05-13T17:18:57Z")
Make more than the median national income in the form of passive income. ---
**Author:** ![dr\_t\_non-fan](https://community.goactuary.com/letter_avatar_proxy/v4/letter/d/a8b319/32.png) [@dr\_t\_non-fan](https://community.goactuary.com/u/dr_t_non-fan)\ **Post date:** [May 13, 2021, 5:24pm UTC](https://community.goactuary.com/t/define-rich/2915/7 "2021-05-13T17:24:53Z")
How about: “Rich” is “If you retired today, you would be, objectively, financially secure until you die.” ---
**Author:** ![Celalta](https://community.goactuary.com/user_avatar/community.goactuary.com/celalta/32/302_2.png) [@Celalta](https://community.goactuary.com/u/Celalta)\ **Post date:** [May 13, 2021, 5:26pm UTC](https://community.goactuary.com/t/define-rich/2915/8 "2021-05-13T17:26:21Z")
> [@NormalDan](#): > > I think people rarely think of themselves as rich. It’ll always just be some % more than whatever the person has. Yes, 400% more than I have now (so 5x), but my past self would have said the same (although not the past self that had negative net worth, that past self would have felt “rich” (and did, for a minute) at positive net worth). ---
**Author:** ![DeepPurple](https://community.goactuary.com/user_avatar/community.goactuary.com/deeppurple/32/1551_2.png) [@DeepPurple](https://community.goactuary.com/u/DeepPurple)\ **Post date:** [May 13, 2021, 5:28pm UTC](https://community.goactuary.com/t/define-rich/2915/9 "2021-05-13T17:28:36Z")
> [@NormalDan](#): > > Wealthy rich is … \> 2m net worth I agree with NormalDan in the sense that “Rich” is a condition of accumulated wealth (ie net worth) and NOT defined by annual income. It’s possible, even probable, that high income people are not rich because they spend all of their income. ETA: I think NormalDan edited his post to add stuff that I don’t agree with. There’s no such thing as “income rich” I will opine that I think “rich” is the level at which one can retire from work and live reasonably off their accumulated assets for the rest of their life. I would say that number is more like 3M net worth, but that is relative to my living in a somewhat high cost of living area. Bob Brinker defines this: as **Critical Mass:** > A state of freedom from worry and anxiety about money due to the accumulation of assets which make it possible to live your life as you choose without working if you prefer not to work or just working because you enjoy your work but don’t need the income. Plainly stated, the Land of Critical Mass is a place in which individuals enjoy their own personal financial nirvana. Differentiation between earned income and assets is a fundamental lesson to learn when thinking in terms of critical mass. Earned income does not produce critical mass…critical mass is strictly a function of assets. I wouldn’t say Brinker is a hero of mine. His logic and thoughts I often find overly simplistic. But I like his concept of critical mass as a life goal. ---
**Author:** ![ao\_fan](https://community.goactuary.com/user_avatar/community.goactuary.com/ao_fan/32/143_2.png) [@ao\_fan](https://community.goactuary.com/u/ao_fan)\ **Post date:** [May 13, 2021, 5:33pm UTC](https://community.goactuary.com/t/define-rich/2915/10 "2021-05-13T17:33:58Z")
I see there is now a thread for this, so copying this from the other thread. > [@Something extravagant you bought just because](https://community.goactuary.com/t/something-extravagant-you-bought-just-because/2898/167): > > dentist > > director at a local hospital, also has a private practice. It was claimed that this dude who makes 500-600K a year isn’t rich by new york standards. I kinda disagree. This is a pretty impressive list of jobs here that he might be expected to be on the richer side. ---
**Author:** ![ao\_fan](https://community.goactuary.com/user_avatar/community.goactuary.com/ao_fan/32/143_2.png) [@ao\_fan](https://community.goactuary.com/u/ao_fan)\ **Post date:** [May 13, 2021, 5:35pm UTC](https://community.goactuary.com/t/define-rich/2915/11 "2021-05-13T17:35:36Z")
yeah, i disagree that 250K year in family income with 2 working parents is rich at all where I live in Manhattan. this depends highly on where you live. ---
**Author:** ![NormalDan](https://community.goactuary.com/user_avatar/community.goactuary.com/normaldan/32/1013_2.png) [@NormalDan](https://community.goactuary.com/u/NormalDan)\ **Post date:** [May 13, 2021, 5:38pm UTC](https://community.goactuary.com/t/define-rich/2915/12 "2021-05-13T17:38:34Z")
> [@DeepPurple](#): > > I agree with NormalDan in the sense that “Rich” is a condition of accumulated wealth (ie net worth) and NOT defined by annual income. It’s possible, even probable, that high income people are not rich because they spend all of their income. > ETA: I think NormalDan edited his post to add stuff that I don’t agree with. There’s no such thing as “income rich” I think you may have read it quickly. But clearly there’s a difference between someone making 250k/yr and spending 250k/yr and someone making 50k/yr and spending 50k/yr. I guess the 250 is not rich but with an option to be rich… certainly living luxuriously. ---
**Author:** ![NormalDan](https://community.goactuary.com/user_avatar/community.goactuary.com/normaldan/32/1013_2.png) [@NormalDan](https://community.goactuary.com/u/NormalDan)\ **Post date:** [May 13, 2021, 5:39pm UTC](https://community.goactuary.com/t/define-rich/2915/13 "2021-05-13T17:39:03Z")
I’d argue living in Manhattan is an incredibly luxurious thing to do. ---
**Author:** ![ao\_fan](https://community.goactuary.com/user_avatar/community.goactuary.com/ao_fan/32/143_2.png) [@ao\_fan](https://community.goactuary.com/u/ao_fan)\ **Post date:** [May 13, 2021, 5:40pm UTC](https://community.goactuary.com/t/define-rich/2915/14 "2021-05-13T17:40:22Z")
not really. it’s a trade-off. in the po you could buy a mcmansion for less than i paid for my studio apartment. sure, i can walk out my door and do stuff, but i’m kinda an introvert anyway. i didn’t move to manhattan because it’s a luxury. it’s because i grew up in new york and that’s where i got a job. ---
**Author:** ![NormalDan](https://community.goactuary.com/user_avatar/community.goactuary.com/normaldan/32/1013_2.png) [@NormalDan](https://community.goactuary.com/u/NormalDan)\ **Post date:** [May 13, 2021, 5:42pm UTC](https://community.goactuary.com/t/define-rich/2915/15 "2021-05-13T17:42:28Z")
Why not live on Staten Island? :judge: ---
**Author:** ![BG5150](https://community.goactuary.com/user_avatar/community.goactuary.com/bg5150/32/38521_2.png) [@BG5150](https://community.goactuary.com/u/BG5150)\ **Post date:** [May 13, 2021, 5:44pm UTC](https://community.goactuary.com/t/define-rich/2915/16 "2021-05-13T17:44:06Z")
> [@ao\_fan](#): > > sure, i can walk out my door and do stuff, but i’m kinda an introvert anyway. Then isn’t living in the city counter-productive? You could be introverted for a lot less money in an apartment in Rahway, NJ. ---
**Author:** ![ao\_fan](https://community.goactuary.com/user_avatar/community.goactuary.com/ao_fan/32/143_2.png) [@ao\_fan](https://community.goactuary.com/u/ao_fan)\ **Post date:** [May 13, 2021, 5:45pm UTC](https://community.goactuary.com/t/define-rich/2915/17 "2021-05-13T17:45:54Z")
because it’s a 2 hour commute and i’m afraid of driving. ---
**Author:** ![ao\_fan](https://community.goactuary.com/user_avatar/community.goactuary.com/ao_fan/32/143_2.png) [@ao\_fan](https://community.goactuary.com/u/ao_fan)\ **Post date:** [May 13, 2021, 5:48pm UTC](https://community.goactuary.com/t/define-rich/2915/18 "2021-05-13T17:48:17Z")
and then i have to commute to manhattan for work. i don’t view wanting to live closer to work as a rationale for manhattan being luxurious just because it’s manhattan when i live in a 500 square foot apartment. ---
**Author:** ![DeepPurple](https://community.goactuary.com/user_avatar/community.goactuary.com/deeppurple/32/1551_2.png) [@DeepPurple](https://community.goactuary.com/u/DeepPurple)\ **Post date:** [May 13, 2021, 5:49pm UTC](https://community.goactuary.com/t/define-rich/2915/19 "2021-05-13T17:49:54Z")
I > [@NormalDan](#): > > I’d argue living in Manhattan is an incredibly luxurious thing to do. I’ve been there many many many times. The whole place smells like urine. There’s trash bags virtually everywhere, every night. Most living spaces are very small. I don’t see the appeal. ---
**Author:** ![BG5150](https://community.goactuary.com/user_avatar/community.goactuary.com/bg5150/32/38521_2.png) [@BG5150](https://community.goactuary.com/u/BG5150)\ **Post date:** [May 13, 2021, 5:50pm UTC](https://community.goactuary.com/t/define-rich/2915/20 "2021-05-13T17:50:07Z")
> [@ao\_fan](#): > > because it’s a 2 hour commute and i’m afraid of driving. Train runs right thru town. 40 mins to Penn Station. Nice an relaxing. Can even drink on the train (even tho I know you don’t drink much) [Next page](https://community.goactuary.com/t/define-rich/2915.md?page=2)