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What is considered "rich" in today's economic landscape?

How much income and savings would qualify an individual as rich? I am interested in knowing the objective number or value that would quantify as rich, but more so, I'm intrigued by your subjective options as to what would make an individual rich.

Career / Compensation, Personal Finance
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April 2017

 “Rich” is a highly subjective quality. In my opinion, there is no absolute “rich”.

Willie Nelson had millions and went broke. Jordan Belfort (the ‘Wolf of Wall Street’) was making apparently $250 million a year and went broke and to jail.  MC Hammer also apparently went broke despite $33 Million of income. So to define rich in absolute terms is not useful. How about we define it in terms of the amount of income you need to be happy? So if you need $50,000 a year to be happy, then $50,000, divided by some rate of return would give us a number. Suppose you thought 5% was a reasonable return, then $1,000,000 would be a good nest egg. But, we have inflation. So I think you need 25 times (that would be 4%), or better, 33 times (that’s 3%) your annual income requirement to be ‘rich’. Need $50,000 a year? $1,650,000 is the start of rich for that person.

This presents a problem of ‘how much income makes you rich?’ According to that bastion of wisdom, income of about $200,000 for a single person or $250,000 for a married couple makes you rich. So using my math, a single person with $5 - $6.6 million is rich, and a couple with $6.25 - $8.25 million is rich. That goes to my old definition of rich as over $10 million. That being said, I’ll ask you about your health, your family, and your spirit. Money can’t give you those. So measure material wealth in dollars and real wealth in sense.

April 2017
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