Comments on: How Much Does One Need to be Rich? http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/ for students and teachers of Economics Wed, 08 Feb 2012 23:39:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Meghan Green http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-6234 Meghan Green Sat, 18 Oct 2008 11:57:32 +0000 http://welkerswikinomics.com/blog/?p=569#comment-6234 It is a common perspective in today’s society that in order to be considered rich, you have to make a certain amount of money. As stated in this article, rich today requires at least $5 million. I, however, strongly disagree with this statement. In my opinion, being rich all depends on how you look at it. For example, a person who grows up in an impoverished, lower class area is obviously going to view the requirements of being rich much differently than a person who grows up in a wealthy and privileged family. What one person deems as being as being associated with wealth may seem like nothing to another. With that being said, I agree with the blog responses above that point out that the results of the survey may have been radically different if it gathered responses from a variety of different social classes. In my opinion, one's wealth in no way affects his or her happiness. You could have the $5 million required to be considered rich, and still not be truly happy. Instead of focusing on what you don’t have, you should be grateful for what you do have. It is a common perspective in today’s society that in order to be considered rich, you have to make a certain amount of money. As stated in this article, rich today requires at least $5 million. I, however, strongly disagree with this statement. In my opinion, being rich all depends on how you look at it. For example, a person who grows up in an impoverished, lower class area is obviously going to view the requirements of being rich much differently than a person who grows up in a wealthy and privileged family. What one person deems as being as being associated with wealth may seem like nothing to another. With that being said, I agree with the blog responses above that point out that the results of the survey may have been radically different if it gathered responses from a variety of different social classes.

In my opinion, one's wealth in no way affects his or her happiness. You could have the $5 million required to be considered rich, and still not be truly happy. Instead of focusing on what you don’t have, you should be grateful for what you do have.

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]]> By: Kevin Righi http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-6224 Kevin Righi Sat, 18 Oct 2008 04:22:19 +0000 http://welkerswikinomics.com/blog/?p=569#comment-6224 Being rich in today's society is greatly different than what it was for our parents and our grandparents. If you asked one of your grandparents what they consider rich they might say anyone who makes 6 digits. However those surveys show pretty good numbers. And I can understand how you need at least $500,000 in assests to be considered rich but if you ask people who make 10-25 thousand a year, rich to them might be something like $100,000 as well. It all has to do with the people you interview. In my opinion being rich is if you make $250,000 a year or more and invest it properly and not just lose it all gambling or thoriwng it away. But as we all know $ isn't what makes us happy. Especially according to Mr.Latter. If you want to have a rich life you need to have good strong relationships with other people. That's what will make you happy at the end of your lfie. Being rich in today's society is greatly different than what it was for our parents and our grandparents. If you asked one of your grandparents what they consider rich they might say anyone who makes 6 digits. However those surveys show pretty good numbers. And I can understand how you need at least $500,000 in assests to be considered rich but if you ask people who make 10-25 thousand a year, rich to them might be something like $100,000 as well. It all has to do with the people you interview. In my opinion being rich is if you make $250,000 a year or more and invest it properly and not just lose it all gambling or thoriwng it away. But as we all know $ isn't what makes us happy. Especially according to Mr.Latter. If you want to have a rich life you need to have good strong relationships with other people. That's what will make you happy at the end of your lfie.

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]]> By: Kevin Righi http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-6223 Kevin Righi Sat, 18 Oct 2008 04:21:22 +0000 http://welkerswikinomics.com/blog/?p=569#comment-6223 Being rich in today's society is greatly different than what it was for our parents and our grandparents. If you asked one of your grandparents what they consider rich they might say anyone who makes 6 digits. However those surveys show pretty good numbers. And I can understand how you need at least $500,000 in assests to be considered rich but if you ask people who make 10-25 thousand a year, rich to them might be something like $100,000 as well. It all has to do with the people you interview. In my opinion being rich is if you make $250,000 a year or more and invest it properly and not just lose it all gambling or thoriwng it away. But as we all know $ isn't what makes us happy. Especially according to Mr.Latter. If you want to have a rich life you need to have good strong relationships with other people. Being rich in today's society is greatly different than what it was for our parents and our grandparents. If you asked one of your grandparents what they consider rich they might say anyone who makes 6 digits. However those surveys show pretty good numbers. And I can understand how you need at least $500,000 in assests to be considered rich but if you ask people who make 10-25 thousand a year, rich to them might be something like $100,000 as well. It all has to do with the people you interview. In my opinion being rich is if you make $250,000 a year or more and invest it properly and not just lose it all gambling or thoriwng it away. But as we all know $ isn't what makes us happy. Especially according to Mr.Latter. If you want to have a rich life you need to have good strong relationships with other people.

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]]> By: Laura Murray http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5918 Laura Murray Fri, 26 Sep 2008 15:59:15 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5918 So i think, rich has to be defined. If you think of happyness its different from every perspectiv. people are rich of having a happy family and having children, having clothes, a roof over their heads. Just the basic needs have to at least be satisfied. If you think of the amount of money you own, i think $ 5 mill is way too much of being considered rich. You are rich when you can buy whatever you want and dont have to worry about your money. You have to consider their situation and the place they live. A place like switzerland is pretty expensive but if you go to Asia you can buy way more for the same amount of money you spend in Switzerland. You achieve utility by owning the goods and services you need. So i think, rich has to be defined. If you think of happyness its different from every perspectiv. people are rich of having a happy family and having children, having clothes, a roof over their heads. Just the basic needs have to at least be satisfied. If you think of the amount of money you own, i think $ 5 mill is way too much of being considered rich. You are rich when you can buy whatever you want and dont have to worry about your money. You have to consider their situation and the place they live. A place like switzerland is pretty expensive but if you go to Asia you can buy way more for the same amount of money you spend in Switzerland. You achieve utility by owning the goods and services you need.

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]]> By: Thibault De Keersmae http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5908 Thibault De Keersmae Fri, 26 Sep 2008 02:05:02 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5908 I find this amount of 5million quite interesting, and it got me thinking. I think this amount will depend on the people, and their situation. By their situation I mean their income, and what it takes to maximize their utility. Some people are used to more normal goods, while there's people who buy inferior goods, might consider a constant use of normal goods rich, and wealthy. My conclusion is that it depends on the people who are asked, what their current situation is, and also their surroundings. I find this amount of 5million quite interesting, and it got me thinking. I think this amount will depend on the people, and their situation. By their situation I mean their income, and what it takes to maximize their utility. Some people are used to more normal goods, while there's people who buy inferior goods, might consider a constant use of normal goods rich, and wealthy. My conclusion is that it depends on the people who are asked, what their current situation is, and also their surroundings.

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]]> By: Steve Latter http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5883 Steve Latter Wed, 24 Sep 2008 17:24:38 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5883 Hi Isabel! Thanks for your first post! Yes, of course, "rich" refers to "economically rich". But, yes, there has been much research on happiness, and there is less of a correlation between money and happiness than you might think. The short version of the research is money is not a key determinant of happiness as long as the person has the basics such as food, clothing, shelter, and security. So in America, for example, there is little correlation in happiness levels between the wealthy and middle class. Hi Isabel! Thanks for your first post!

Yes, of course, "rich" refers to "economically rich". But, yes, there has been much research on happiness, and there is less of a correlation between money and happiness than you might think. The short version of the research is money is not a key determinant of happiness as long as the person has the basics such as food, clothing, shelter, and security. So in America, for example, there is little correlation in happiness levels between the wealthy and middle class.

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]]> By: Isabel Navarro http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5880 Isabel Navarro Wed, 24 Sep 2008 06:51:31 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5880 In all honesty, after hearing one of your opening prayers before class, the first thought that comes to mind is: the definition of being rich is being happy. Now economically, I think being economically sound and comfortable, never having to worry about paying the bills, defines what being rich is. To me there is not specific value, rather, it depends on how smart people are with money. In all honesty, after hearing one of your opening prayers before class, the first thought that comes to mind is: the definition of being rich is being happy. Now economically, I think being economically sound and comfortable, never having to worry about paying the bills, defines what being rich is. To me there is not specific value, rather, it depends on how smart people are with money.

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]]> By: Steve Latter http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5846 Steve Latter Fri, 19 Sep 2008 16:59:08 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5846 Hi Carly! So clearly explained! In the news yesterday, a new list of the wealthiest Americans was discussed and Bill Gates (the ex-Microsoft executive turned philanthropist) is at the top of the list with a net worth of $57B! Net worth is calculated by taking all of your assets (real estate values, stocks, and other investments & assets) and subtracting any debt or liabilities that you owe. Thanks for the post! Hi Carly!

So clearly explained!

In the news yesterday, a new list of the wealthiest Americans was discussed and Bill Gates (the ex-Microsoft executive turned philanthropist) is at the top of the list with a net worth of $57B! Net worth is calculated by taking all of your assets (real estate values, stocks, and other investments & assets) and subtracting any debt or liabilities that you owe.

Thanks for the post!

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]]> By: Carly Wonder http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5843 Carly Wonder Fri, 19 Sep 2008 06:57:02 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5843 I agree with all of the posts about how wealth is directly related to ones upbringing. If this survery was expanded to different levels of income, the response could be radically different. For some of the richest in the world, 5 million dollars is mere pocket change. On the other hand, for those who live from paycheck, possesing 5 million dollars would be a dream. It would be interesting to see a survey of the same question from the lower class and then compare the results of this one. I agree with all of the posts about how wealth is directly related to ones upbringing. If this survery was expanded to different levels of income, the response could be radically different. For some of the richest in the world, 5 million dollars is mere pocket change. On the other hand, for those who live from paycheck, possesing 5 million dollars would be a dream. It would be interesting to see a survey of the same question from the lower class and then compare the results of this one.

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]]> By: Lisa G http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5841 Lisa G Fri, 19 Sep 2008 01:26:20 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5841 I agree with the people that said that being considered rich is a question of perspective and personal background. It makes sense that the amount of money needed to be considered rich has increase over time. More and more people are rich and have several millions today then several years ago. In early time a rich person had a lot less money than the rich people do today. So as people get richer and richer (wages increase, GDP increase and decrease in taxes for the rich), the standard needed to be considered rich only increases. This statistic is also biased as they only interviewed a certain class of people, those who have $500,000 or more. I agree with the people that said that being considered rich is a question of perspective and personal background. It makes sense that the amount of money needed to be considered rich has increase over time. More and more people are rich and have several millions today then several years ago. In early time a rich person had a lot less money than the rich people do today. So as people get richer and richer (wages increase, GDP increase and decrease in taxes for the rich), the standard needed to be considered rich only increases. This statistic is also biased as they only interviewed a certain class of people, those who have $500,000 or more.

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]]> By: Steve Latter http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5835 Steve Latter Thu, 18 Sep 2008 16:53:46 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5835 Hello Stephen and Kevin, Thanks for your first posts! Yes, "rich", certainly is a relative concept. And your add ons regarding "maintaining principal" and the role of taxes are key points as well. PS Stephen: I am shopping for a new calculator with a square-root function Hello Stephen and Kevin,

Thanks for your first posts!

Yes, "rich", certainly is a relative concept. And your add ons regarding "maintaining principal" and the role of taxes are key points as well.

PS Stephen: I am shopping for a new calculator with a square-root function

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]]> By: links for 2008-09-18 « CF Bloke blog http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5838 links for 2008-09-18 « CF Bloke blog Thu, 18 Sep 2008 13:08:50 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5838 [...] Welker’s Wikinomics Blog » How Much Does One Need to be Rich? (tags: economics) [...] [...] Welker’s Wikinomics Blog » How Much Does One Need to be Rich? (tags: economics) [...]

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]]> By: Kevin Hoonan http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5833 Kevin Hoonan Thu, 18 Sep 2008 10:56:57 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5833 I really think the perception of being "rich" depends on the person and their background. For example, if a person grew up dirt poor in a third world country, his view of being rich could be having 1,000 dollars which he was not accustomed to. It's all really a matter of opinion. I believe however that it always used to be thought that 1 million dollars was the standard of being rich. Like when someone won on Who Wants To be a Millionaire, it was a big deal. With all the taxes today, you really don't end up with a million dollars but still a considerably large amount of money. This is why i believe that most people believe that 5 million dollars is the standard for being rich because of the role of taxes. I really think the perception of being "rich" depends on the person and their background. For example, if a person grew up dirt poor in a third world country, his view of being rich could be having 1,000 dollars which he was not accustomed to. It's all really a matter of opinion. I believe however that it always used to be thought that 1 million dollars was the standard of being rich. Like when someone won on Who Wants To be a Millionaire, it was a big deal. With all the taxes today, you really don't end up with a million dollars but still a considerably large amount of money. This is why i believe that most people believe that 5 million dollars is the standard for being rich because of the role of taxes.

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]]> By: Stephen Trucol http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5832 Stephen Trucol Thu, 18 Sep 2008 09:24:16 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5832 I think the definition of being rich is that you must have money but you must also maintain the wealth. Simply put it is that you are able to live comfortably off the income you have while not touching the principal amount. I believe this amount will vary for people, so the 5 million might work for some while others can have less and others can have more. I think the definition of being rich is that you must have money but you must also maintain the wealth. Simply put it is that you are able to live comfortably off the income you have while not touching the principal amount. I believe this amount will vary for people, so the 5 million might work for some while others can have less and others can have more.

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]]> By: Younes Huber http://welkerswikinomics.com/blog/2008/09/17/how-much-does-one-need-to-be-rich/comment-page-1/#comment-5824 Younes Huber Wed, 17 Sep 2008 19:19:15 +0000 http://welkerswikinomics.com/blog/?p=569#comment-5824 I agree with many of the previous responds, whether one is rich or not depends on who is asked. The definition of rich varies, yet I think that 1 million dollars is not rich, now a days if one wants to live relatively well, 1 million dollars will not last as long as it might have 20 years ago. In the 80s the 1 million dollars would be enough to live the high life for a long time, yet now more costs are made for daily needs and wants. However, we earn much more money now, so the 1 million back then might be relevant to the present 5 million. Considering how much the worlds population rose in the past 20 years, the consumer's number has risen with it since each person is a consumer. The detail which I find difficult to believe is that there exists a book on how to stay rich? I believe that there are no specific rules on how to stay rich, since the world changes as every day passes and daily new situations arise, one must make new decisions each time, therefore I find it difficult to believe. That however, is only my opinin of course. I agree with many of the previous responds, whether one is rich or not depends on who is asked. The definition of rich varies, yet I think that 1 million dollars is not rich, now a days if one wants to live relatively well, 1 million dollars will not last as long as it might have 20 years ago. In the 80s the 1 million dollars would be enough to live the high life for a long time, yet now more costs are made for daily needs and wants. However, we earn much more money now, so the 1 million back then might be relevant to the present 5 million. Considering how much the worlds population rose in the past 20 years, the consumer's number has risen with it since each person is a consumer. The detail which I find difficult to believe is that there exists a book on how to stay rich? I believe that there are no specific rules on how to stay rich, since the world changes as every day passes and daily new situations arise, one must make new decisions each time, therefore I find it difficult to believe. That however, is only my opinin of course.

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