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I don’t feel that rich.

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  • VentAlarm
    replied
    This took a weird turn.

    Leave a comment:


  • Shant
    replied
    Originally posted by Larry Ragman View Post

    Life is about choices. Why live somewhere you can’t buy a nice house for half that?
    The prices didn't get this high because people think it's a bad place to live. But I came for economic reasons (opportunity) when housing was still normalish. I stayed because now my family, friends and life are here, and I've already 'won' the house lotto. And also the weather is definitely better here.

    If I were just starting out I would do it somewhere else though.

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  • artemis
    replied
    Originally posted by Balance1969 View Post
    This was just used to put the concept of a millionaire being rich in the perspective of how it was such an elite class in 1962, but now the centi-millionaires are starting to become that class.
    I owe my first realization of what inflation was to a Jetsons cartoon. As George Jetson is heading off to his job at Spacely Sprockets, his wife tries to prompt him to ask for a raise, saying "A million a week isn't much any more!" I found that puzzling rather than funny, and asked one of my parents to explain the joke.

    Now that I understand the concept of inflation, I still don't find the joke funny. Rather, it's terrifying.

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  • Balance1969
    replied
    Kamban and pierre , to help you in "following [my] logic,"

    There were about 100,000 millionaires around 1962.
    There were about 1,000,000 deca-millionaires in 2011.
    There were about 55,000 centi-millionaires in 2018.

    The logic is that today the number of centi-millionaires is closer than the number of deca-millionaires to the number of millionaires in 1962. Using my number of $64 million would make it even closer.

    This was just used to put the concept of a millionaire being rich in the perspective of how it was such an elite class in 1962, but now the centi-millionaires are starting to become that class.

    Don't get me wrong. As discussed in this thread, we could debate what being "rich" means, and it is a matter of perspective. All-in-all, I agree it is all relative and subjective about what "rich" means, especially in light of all the fun comments on this thread.

    Leave a comment:


  • TheDangerZone
    replied
    Originally posted by Balance1969 View Post

    "Millionaire" applied to uber rich people back in 1962. Uber rich people get to be uber rich by doing more with their investments than just keeping up with inflation.
    I think the general public would consider someone with a 9M+ net worth to be quite wealthy. 9-10MM I believe is also close to the top 1% of US household NW. It don’t think it takes 60M to be considered wealthy by the average American.

    Leave a comment:


  • Balance1969
    replied
    Originally posted by Kamban View Post
    Technically a millionaire means you have million dollars. Now what that million will buy you compared to 1962 is a different question. Inflation is a silent killer but in the minds of people, the inflation does not exist and they still consider a millionaire as being rich, just the same as in the 1960's. As pierre states, technically it should be a decamillionaire today to have the same "richness" as in 1962.
    Yeah. I said the "concept of" a millionaire, not the technical definition. I thought it was implied that it meant the concept of a millionaire being rich in the context of this thread discussing how one now does not feel that rich by merely being a millionaire. My bad. I will try to be more accurate with my posts.

    Originally posted by Kamban View Post
    I am a procrastinator and get into a stupor by analysis-paralysis. I look at the expensive airline price today and think "oh no, why did I not buy it two weeks ago when it was half the price, so let me wait a few more days and see if it will go down". And two weeks later it is even higher. Hey, the airlines are gouging me and I will cancel the trip and take it next year. But it never happens next year or the year after.

    The best trips are when someone else arranges for the trip with all the hotels and even airlines booked and you just pony up the overall cost. You never look into if the airfare or hotel to see if it could be cheaper. Or you just say the heck with it and buy the ticket, have a little heartburn and two years later you don't recollect the price of the ticket but the memories of the magical place you visited still remain.
    I hear ya. I am the same way and hate planning vacations, but pay business expenses with a personal CC that gives you extra perks if you use the points for travel and their website makes it easy to find flights/hotels/car rentals with good deals. Other than that, I also prefer to have someone else arrange the trip to the magical place you visit. (Unfortunately, for the Yosemite trip, having someone else arrange part of the trip is what caused the park pass problem in the first place. It possibly would have turned out better if they planned the whole trip).

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  • Balance1969
    replied
    Originally posted by pierre View Post
    I don’t really follow your logic. After inflation $1M in 1962 = $9,058,509 in 2021. What does it matter what the theoretical doubling time is? Who knows what the next decade will bring…
    "Millionaire" applied to uber rich people back in 1962. Uber rich people get to be uber rich by doing more with their investments than just keeping up with inflation.

    Leave a comment:


  • Kamban
    replied
    Originally posted by Balance1969 View Post
    The concept of a "millionaire" goes at least back to the Beverly Hillbillies, which first aired in 1962. Assuming "millionaire" means a million or more and assuming you can double your investment every 10 years, that amount is equal to $64 million today. That puts the concept of "millionaire" into perspective.

    Having $1M in liquid assets with no debt/mortgage, your 401k maxed out, and living below your means on a steady income and health insurance would fit the average Joe's perception of "rich." Just having a net worth of $1M doesn't seem like much when most of that is in your 401k and house.

    One of my cousins calls me his "rich cousin." Even though I passed a net worth of $1M a while ago, I would not consider myself rich because most of that is in my house and 401k.
    Technically a millionaire means you have million dollars. Now what that million will buy you compared to 1962 is a different question. Inflation is a silent killer but in the minds of people, the inflation does not exist and they still consider a millionaire as being rich, just the same as in the 1960's. As pierre states, technically it should be a decamillionaire today to have the same "richness" as in 1962.

    I am a procrastinator and get into a stupor by analysis-paralysis. I look at the expensive airline price today and think "oh no, why did I not buy it two weeks ago when it was half the price, so let me wait a few more days and see if it will go down". And two weeks later it is even higher. Hey, the airlines are gouging me and I will cancel the trip and take it next year. But it never happens next year or the year after.

    The best trips are when someone else arranges for the trip with all the hotels and even airlines booked and you just pony up the overall cost. You never look into if the airfare or hotel to see if it could be cheaper. Or you just say the heck with it and buy the ticket, have a little heartburn and two years later you don't recollect the price of the ticket but the memories of the magical place you visited still remain.

    Leave a comment:


  • Turf Doc
    replied
    Yes, if you have millions you're rich, period. I do think that you need enough to be able to cut back or never work again to truly feel rich though. Most people don't understand that a high income doesn't mean you have it all made in the shade, which is basically what this website is about

    Leave a comment:


  • Tim
    replied
    Originally posted by Larry Ragman View Post

    Life is about choices. Why live somewhere you can’t buy a nice house for half that?
    Usually because a long commute. Just saying.
    Conspicuous consumption and status have value for some.
    When we were building our house, my wife spent toooo much time there. The contractors thought she worked for the builder.
    Worker: Don’t worry about that. Bob will understand and the owner will never know..
    By the way, how long have you worked for Bob?
    Wife: I don’t, Bob works for me. I’m the owner.

    Don’t need 6000 sqft NOW for the two. Can’t get her to move.

    Leave a comment:


  • pierre
    replied
    Originally posted by Balance1969 View Post
    The concept of a "millionaire" goes at least back to the Beverly Hillbillies, which first aired in 1962. Assuming "millionaire" means a million or more and assuming you can double your investment every 10 years, that amount is equal to $64 million today. That puts the concept of "millionaire" into perspective.
    I don’t really follow your logic. After inflation $1M in 1962 = $9,058,509 in 2021. What does it matter what the theoretical doubling time is? Who knows what the next decade will bring…

    Leave a comment:


  • Balance1969
    replied
    The concept of a "millionaire" goes at least back to the Beverly Hillbillies, which first aired in 1962. Assuming "millionaire" means a million or more and assuming you can double your investment every 10 years, that amount is equal to $64 million today. That puts the concept of "millionaire" into perspective.

    Having $1M in liquid assets with no debt/mortgage, your 401k maxed out, and living below your means on a steady income and health insurance would fit the average Joe's perception of "rich." Just having a net worth of $1M doesn't seem like much when most of that is in your 401k and house.

    One of my cousins calls me his "rich cousin." Even though I passed a net worth of $1M a while ago, I would not consider myself rich because most of that is in my house and 401k.

    Originally posted by wideopenspaces View Post
    We just took a 5 week trip across the country and during that time flew somewhere else for a few days. I figure if I can take a vacation during my vacation, I'm probably rich.
    Ha. My wife planned a trip to Yosemite for us. I told her twice to check on whether we need a pass to get in to the park. She said we didn't. Upon flying all the way out to San Francisco and driving to Yosemite we found out you need a pass and everything was sold out at least a week in advance. You see, if you are staying at lodging in the park, you automatically get a 3-day pass, and she confused our Yosemite "View" Lodge outside the park with Yosemite "Valley" Lodge inside the park (even though I told her I could not get lodging in the park). After previously being so excited about our first trip since Covid started, I could see the tears of disappointment welling up in her eyes, so I started scouring the web for a solution. Even though lodging had previously been sold out, a batch of rooms was magically released. The cheapest ones started disappearing, but I was able to book the last available room for $300 without batting an eye. The mid day temp was 106 degrees F, the room didn't have an air conditioner, and our current hotel was already paid for, so we just brought one extra day's worth of clothes and toiletries and left the rest at our hotel room.

    Some people have a house and a vacation house. We had a hotel room and a vacation hotel room.

    I take back what I said above. I would consider myself rich.

    Leave a comment:


  • VentAlarm
    replied
    Originally posted by Shant View Post
    Must be nice to live in a place where you can buy a shack for under a million.
    It is.

    Leave a comment:


  • Larry Ragman
    replied
    Originally posted by Shant View Post
    Must be nice to live in a place where you can buy a shack for under a million.
    Life is about choices. Why live somewhere you can’t buy a nice house for half that?

    Leave a comment:


  • Shant
    replied
    Must be nice to live in a place where you can buy a shack for under a million.

    Leave a comment:

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