How Much does it Take to Be Rich these Days?

Tuesday, January 5th, 2010 By

How Much does it Take to Be Rich these Days?

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If I had a Million Dollars

Becoming a millionaire is something that many of us have dreamt about. It is a vision that has led many people to do crazy things in the pursuit. The incessant quest has sparked many popular game shows and contests. The mere mention of the possibility that someone will become a millionaire has countless people clamouring for a chance to try. Having a million dollars has long been seen as a ticket to freedom – an opportunity to live the good life. These days though, a million dollars is not what it used to be and is far from being enough to be considered among the elite. Sure, it is still a considerable amount for many of us, but it leaves us to wonder exactly what is considered rich in this day and age.

How much does it Really Take?

According to a Barron’s Online article from March of 2008, $25 million dollars is now thought of as the base amount to be considered rich in today’s society. This may seem absolutely ridiculous in the middle of such a tough economy, but it is seen as the amount necessary to live a carefree lifestyle. Even though a large majority of the population is financially suffering, growth among the elite is on the rise. It makes some sense when we look at it more closely. Money does not disappear; it only changes hands. The money that so many of us are currently missing has got to be somewhere.

Who has all the Money?

The Barron’s article goes on to explain that there are more than double the amount of U.S. households which have between $1 million and $25 million dollars in net worth than there were ten years ago. Even more shockingly, there are approximately three times as many households in the $500 million category than there were in the previous decade.

It is Hard to Imagine

Even though most of us would be thrilled to have $10 million dollars in our pocket, many people who currently have this amount feel that they are living a rather middle of the road lifestyle. $25 million to $50 million is now thought to be the low level of wealth. $50 million to $500 million is middle of the road and $500 million and up is considered elite.

If only we had such Problems

In a time when most people are struggling to bring in enough to pay the bills and hopefully tuck a little away, it can be difficult to wrap our minds around the concept that having $5 million or $10 million dollars is not considered rich. The truth is that even with a fairly large sum in the bank, a crisis can come along and wipe out a large portion of a person’s funds. These new ideas about wealth take into consideration the amount of money that would be necessary to cover all of a person’s possible expenses without financing anything and still have enough left over in case the unexpected happens, such as healthcare issues. So, just in case you were wondering how much it would take to live worry free (at least financially speaking) in today’s society, $25 million ought to do it.

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