Secrets of the "Rich"

[6figures]

need some definition of rich.. from what i see there are two type .. rich hard working and clever (those who run business & indusrty) and rich shonks (those who run property & investment trusts which fail but they still end up walking away with big $)..

Those i know who are rich, hard working & clever never sell property they continue to accumulate, and they say to me .. when I bought this in 1974 people said I paid $1000 to much.. it now generates $1m a year in rent.. or why would I sell it ? I would then just have to buy something else ? this has been my experience with the rich..

I think the term we are looking for is "wealthy" ... rich has too many definitions..

clasify wealthy? multi millions? billions?

 

[skc]

I think the term we are looking for is "wealthy" ... rich has too many definitions..

clasify wealthy? multi millions? billions?

I would classify wealthy as net worth of $5m+ per household member / dependent.

$1-5m is probably upper middle class.

$0.5-$1m is middle class (many retirees sitting on their home have that).

 

[xyzedarteerf]

I think the rich just do things differently.The rich are patient, they don't follow the herd and they don't subscribe to the end of the world theories, life always goes on.

Now this you can bank your $$ on, but you have to ballance this with Risk as well .

 

[Bill M]

Or are you rich if your passive income exceeds your expenses and you can wake up everyday and do whatever you like,( within reason) you have your health and a beautiful family, like me?
I think it is all about balance, having the time to enjoy your life and not comparing yourself to anyone else, because there will always be someone with more than you!

Leon
Passive income is the key!

Hi leon, welcome to the forum. I'm with you mate, I feel rich with all of the above, cheers.

 

[trainspotter]

Never get so busy making a living that you forget to make a life is my motto.

 

[Logique]

I'd say the rich folks are the ones having home delivery of gold and silver bars atm. Of course as a gold and silver investor I am biased. AUD at 1.09 was it last?

Such a bother when Postie doesn't meet the expected timing of bars to the door. I'd be able to order some silver bars if Explod didn't have them all (only joking)

 

[leonandnaye]

Hi leon, welcome to the forum. I'm with you mate, I feel rich with all of the above, cheers.

Hi Bill,
Thanks for the welcome, I wish I had found the ASF sooner,

I think the words rich or wealthy are very subjective,

It was always my goal to be able to retire early,

I started with nothing and through investment properties and shares I was able to retire at 35 because my passive income exceeds my expenses,

I am not earning a million a year, but I dont need to, to enjoy life,

I have no stress, no worries and enough money to go on a few family holidays each year as well as spend time following other passions and not working.

Kiyosake says you can measure how rich / wealthy someone is by the number of days they can live without them working or having to go into their business,
For me this is the rest of my life!!

Leon
Passive income is the key!

 

[tech/a]

Kiyosake says you can measure how rich / wealthy someone is by the number of days they can live without them working or having to go into their business,
For me this is the rest of my life!!

Subjective indeed.

Packer
Murdoch
Trump
Norman (Greg)

At the top level and many many like myself could think of nothing worse than to stop work all together.
Personally I can do all you can do when ever I want with passive income from a fair sized company as well.
I can also become involved in projects of interest which would not be available to me without the cash cow in the background.

So I'm happy to settle on subjective.

 

[Sir Osisofliver]

Some good responses in this thread.

The ATO defines highly wealthy as "an Australian resident who, together with associates, effectively control $30 Million or more in net wealth."

What do the rich do differently to most people?

I agree with most of what Tech said (I still think that you can work for someone else and still create passive income sources elsewhere) but I'd like to highlight that what I've found is that rich people know how to manage risk extremely well. Some of you have spoken about diversification, passive income streams etc. These are just ways of managing risk. As a generalisation most people don't understand risk, and so they think that risk is bad, they avoid any kind of risk because they cannot overcome the fear of loss. Or they get burned because they didn't understand what they were doing and didn't manage their risks appropriately and then never want to do it again.

Rich people understand the risk involved in what they are doing and have strategies to minimise the risks involved.

Cheers

Sir O

 

[jbocker]

I am not telling ..its a secret!

well OK to be a little more accurate
I am not in a postion to tell.

 

[kingcarmleo]

ATO classifies 30m as rich? Jesus, I'd be happy with 1m. I think 5m in assets and 100k+ a year is a good estimate of "rich".