How Much Money Do You Need to Be Rich?

by on July 23, 2013

Yesterday I read an article on CNBC’s website that spelled out exactly how much money it takes to be rich. Before I share how much money they think it takes to be rich, take a minute and think about what it would take to make you feel rich.

For my kids, it would probably be a $5 bill in their pocket. For teenagers, maybe a couple hundred dollars would do. For young professionals, I’m guessing getting out of college debt and hitting your first $1,000 in savings might feel pretty good.

However, as you acquire more wealth, get closer to retirement, and get older, the amount that makes you feel rich really starts to skyrocket.  The more you get used to having money, the less it feels like you have.

For me, feeling rich would mean having enough money to never have to work again, and to be able to afford the lifestyle I want for the rest of my life.  For me, I couldn’t put a number on this, but I could surely be flexible as to the lifestyle I would choose.

Part of the issue with getting rich, and meeting retirement goals for that matter, is that most people go through life matching their spending to their earnings.  This means that your spending will rise at the same rate as your income.  This is a big part of why many people never feel like they have enough money to retire.  In reality, if you could live on half your income from an early age, you could reach this goal in your late thirties or early forties.

Okay, enough babbling about what I think being rich means, let’s hear what the CNBC poll says:

But a new survey from UBS shows that most investors say “wealthy” means $5 million—with at least $1 million of that in cold, hard cash.

The UBS Investor Watch asked 4,450 investors if they consider themselves wealthy. Fully 60 percent of those worth $5 million or more said they’re wealthy, while only 28 percent of those worth $1 million to $5 million said they were wealthy (those were the only two categories given).

You can read the original CNBC article here: What is Wealthy?

And there you have it.  The magic number of how much money it takes to be rich is now $5 million, and $1 million in cash.

So what do you think?  Is that in line with the number you were thinking of?  Leave us a comment below with your thoughts.

 

{ 7 comments… read them below or add one }

Lucy Bieri July 25, 2013 at 3:25 pm

No Chris, that is not the number I am thinking of, not at all. This is a widening issues between those who have and have-not. Those who have feel they don’t have enough because they used to having and will only want more while some feel to be in prison because they have too much. As you mention, the same goes for me, feeling rich would mean having enough money to never have to work again, and to be able to afford the lifestyle I want for the rest of my life.

Great Post, thanks for sharing

Lucy
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richa July 26, 2013 at 8:37 am

I don’t think this question can be answered with a number. No amount of money is sufficient. The more one acquires wealth the more one needs it. In my personal opinion, I will feel rich if I have enough money to feed me 2 times meal and help my children afford good education.

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Chris S July 26, 2013 at 9:06 am

Yeah, it is ridiculous to try to come up with an exact number that applies to everyone. For me, some days I feel like I’m doing well and others I feel like I am falling behind. With that said, I haven’t felt “rich” in a long time. There was a short period where everything came together that I was on the brink of feeling satisfied, but lately there has been more worry than satisfaction.

Anyway, thanks for visiting my blog and posting a comment.
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Fatima from microdermabrasion sydney July 26, 2013 at 4:48 pm

For me, maybe money more than 5 Million will make me happy. Like they say, there is no end to a persons want. It really fits well in this situation! However the definition could be different for each one of us. Thanks for the interesting share.
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Aayna from Personal Trainer Bondi July 27, 2013 at 2:20 am

I guess i can never say the exact amount which I need to be rich. In my opinion being rich or not being rich is all a matter of satisfaction. The money amount which gives the joy of a satisfied life, is the money one requires to be rich. Thanks for sharing this engaging post.

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Vasiliki Karakatsanidis July 29, 2013 at 3:02 pm

I never thought such a thing:How Much Money Do I need to Be Rich? I am happy with what I have,
make my best every day and be grateful for my health.From early age I learned to live with the basics in life and accomplished A LOT! In the age of 52 I enjoy life ,simple things make me happy
and never think to become rich , instead I look for ways to help other people too.
Discovering new things every day,having good people around me and being positive to my surroundings , I can say that these things make me rich!
We can make life easier and we are responsible for our decisions and actions.
Let’s unleash our economic power!!!
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Dena January 24, 2014 at 9:32 am

Seems a little high to me. I am in my early 40’s and have net worth of $2MM and I think that is wealthy. If I wanted to I could never work again.

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