3 ms·

Your second paragraph sounds to me like i live. But i am not "rich". I just take advantage of what is out there to make my life easier or to save time. And actu

by okr 8y ago

Your second paragraph sounds to me like i live. But i am not "rich". I just take advantage of what is out there to make my life easier or to save time. And actually that is all what economy is about.

coldtea 8y ago
>Your second paragraph sounds to me like i live. But i am not "rich". If you're not "rich" I'm not sure how you have dispensed with preparing breakfast, taking the kids to school, clothes, cooking, cleaning the house, driving to work, and so on I've described the rich as having dispensed with. At worse, if you have achieved all of the above, you're better off than 90% of the global population, and probably have no kids, eat out whenever you want, and pay some domestic helper. So, not Bezos rich, but not common folk either...
- k__ 8y ago
  Most people who are rich say they aren't. In Germany, you are in the top 10% of people with the most income by "just" making 50k€. Just imagine, in one of the richest countries on earth, there are around 70 million people who don't make 50k€ a year. Question is, what is the definition of rich? Having more money than more than half the people on earth? In your country? Around you? Having enough money that you can live of interest?
  - LyndsySimon 8y ago
    I don't know if it matches the "actual" definitions, but to me "rich" is a lifestyle. It means not worrying about having enough to do what you desire to do. "Wealthy", on the other hand, means never having to work again if you don't want to (or if your priorities change). By those metrics, I'm (sometimes) rich, but I'm not wealthy. I'm working on it. My financial goal in life is to build a process that generates enough of a positive income stream in perpetuity to take care of my family, and to be able to leave that process to my descendants. Note that this doesn't necessarily require billions (or even millions) of dollars to attain. I've severely cut my recurring expenses, and categorize them into "essential" and "discretionary". For instance: I spend a lot of money right now on high-speed Internet access. I have 300Mbps at home (Gigabit wasn't worth the cost to me), an iPhone X, and an iPad Pro, all with LTE. My 10-year-old has a 6th-Gen iPad LTE, and my wife has a Samsung Galaxy 10+. Monthly costs for all of that is ~$650 / month... and it's entirely discretionary. I can afford it, but I could also turn it off tomorrow if my financial situation were to change. Meanwhile, my mortgage is $850 / month, and that's "essential". My utilities combined are $125 / month, and those are "essential". Add in food and such, and I'm right at $1,400 / month of total essential expenses - I need $17k / year to run my household at a minimum. In order to make that in interest in a traditional investment account, I'd need $340k. That's obvious back-of-the-envelope and doesn't take into account market fluctuations or inflation, but it goes to show what I mean: I would be completely financially independent with less than a half million dollars in traditional investments. My plan relies on that sort of investment for retirement, because it's a relatively safe platform to build upon. I'm in the process now of saving enough capital to get into real estate in a substantial way. If my planning is remotely accurate, I should be able to use rental properties to grow an income stream there exponentially - barring a major depression, the real challenge will be one of process, not money. Managing a single commercial rental with a long-term lease agreement is one thing; managing a dozen, or a hundred, or a thousand... that's quite another.
    - k__ 8y ago
      I use these two words the other way around.
- okr 8y ago
  I put "rich" in quotes. I consider everyone in the west "rich", but thats a discussion of its own. I have bought a robot that vacuums for me twice the week. I rent. I spend like 50 euros per week for prepared food. I spend 10 euro/week for scooter rides from/to work,or i walk or bike. I pay like 100 euro per month for washing/drycleaning. Health insurance is paid via salary, so no further costs there. I jump between entertainment formats, so i only pay 10 euro per month for visual entertainment. So, almost everything has been taken care of.

by okr 8y ago

Your second paragraph sounds to me like i live. But i am not "rich". I just take advantage of what is out there to make my life easier or to save time. And actually that is all what economy is about.

coldtea 8y ago

>Your second paragraph sounds to me like i live. But i am not "rich". If you're not "rich" I'm not sure how you have dispensed with preparing breakfast, taking the kids to school, clothes, cooking, cleaning the house, driving to work, and so on I've described the rich as having dispensed with. At worse, if you have achieved all of the above, you're better off than 90% of the global population, and probably have no kids, eat out whenever you want, and pay some domestic helper. So, not Bezos rich, but not common folk either...

k__ 8y ago
Most people who are rich say they aren't. In Germany, you are in the top 10% of people with the most income by "just" making 50k€. Just imagine, in one of the richest countries on earth, there are around 70 million people who don't make 50k€ a year. Question is, what is the definition of rich? Having more money than more than half the people on earth? In your country? Around you? Having enough money that you can live of interest?
- LyndsySimon 8y ago
  I don't know if it matches the "actual" definitions, but to me "rich" is a lifestyle. It means not worrying about having enough to do what you desire to do. "Wealthy", on the other hand, means never having to work again if you don't want to (or if your priorities change). By those metrics, I'm (sometimes) rich, but I'm not wealthy. I'm working on it. My financial goal in life is to build a process that generates enough of a positive income stream in perpetuity to take care of my family, and to be able to leave that process to my descendants. Note that this doesn't necessarily require billions (or even millions) of dollars to attain. I've severely cut my recurring expenses, and categorize them into "essential" and "discretionary". For instance: I spend a lot of money right now on high-speed Internet access. I have 300Mbps at home (Gigabit wasn't worth the cost to me), an iPhone X, and an iPad Pro, all with LTE. My 10-year-old has a 6th-Gen iPad LTE, and my wife has a Samsung Galaxy 10+. Monthly costs for all of that is ~$650 / month... and it's entirely discretionary. I can afford it, but I could also turn it off tomorrow if my financial situation were to change. Meanwhile, my mortgage is $850 / month, and that's "essential". My utilities combined are $125 / month, and those are "essential". Add in food and such, and I'm right at $1,400 / month of total essential expenses - I need $17k / year to run my household at a minimum. In order to make that in interest in a traditional investment account, I'd need $340k. That's obvious back-of-the-envelope and doesn't take into account market fluctuations or inflation, but it goes to show what I mean: I would be completely financially independent with less than a half million dollars in traditional investments. My plan relies on that sort of investment for retirement, because it's a relatively safe platform to build upon. I'm in the process now of saving enough capital to get into real estate in a substantial way. If my planning is remotely accurate, I should be able to use rental properties to grow an income stream there exponentially - barring a major depression, the real challenge will be one of process, not money. Managing a single commercial rental with a long-term lease agreement is one thing; managing a dozen, or a hundred, or a thousand... that's quite another.
  - k__ 8y ago
    I use these two words the other way around.
okr 8y ago
I put "rich" in quotes. I consider everyone in the west "rich", but thats a discussion of its own. I have bought a robot that vacuums for me twice the week. I rent. I spend like 50 euros per week for prepared food. I spend 10 euro/week for scooter rides from/to work,or i walk or bike. I pay like 100 euro per month for washing/drycleaning. Health insurance is paid via salary, so no further costs there. I jump between entertainment formats, so i only pay 10 euro per month for visual entertainment. So, almost everything has been taken care of.