Money Magazine’s Armchair Millionaire, Lewis Schiff is asked how much money does it take to be rich:
Dear Armchair Millionaire: My best friend and I have a friendly disagreement about what it means to be rich. He says that a million bucks would make someone rich, but I think it would take much more than that. How much money do you think someone needs to really be rich? -- Don in D.C.
Assuming that you have a reasonable income, you can choose to borrow the maximum for which you qualify and buy a McMansion or even the real thing. You can choose to buy or lease a new luxury car every couple of years. You can choose to frequent the most fashionable and expensive restaurants. Or you can choose to be rich. It really is a choice.
Recently, I attended a legal seminar. At lunch, I lost the lottery and was seated between two twenty-something lawyers working as associates a large firms. They were newbies (a couple of years of out law school) and were bemoaning the difficulty of making ends meet on low six figure salaries. Having been an associate in a big firm many years ago, I have heard many such conversations.
Soon, the conversation turned to cars and I was forced to listen to a discussion of the relative merits of the Lexus SUV versus the Mercedes SUV. After twenty minutes of talking across me, one of the lawyers asked my opinion of whether they should lease the $76,000 Mercedes or $64,000 Lexus.
I was in the unusual position of momentarily being at a loss for words. I finally told them that I was a fan of the 1989 Taurus, which is what I still drive. You see, I prefer being rich.
If only you wrote for Forbes.
Posted by: David Yaseen at May 27, 2004 11:42 PMRich is being able to satisfy your wants and needs. If these are limited and or controlled, many of us could 'live rich'. This is what the whole idea of the 'Millionaire Next Door' (Stanley and Danko). Living below your means can mean the difference between a retirement or not, or schooling and higher ed. for your kids or not. Most of us live like kings when compared to any other era in history. We can command things that the most powerful Roman emperor would not dare dream of. We see more media images probably in one day or week than a Victorian might see in a lifetime. ETC.
Posted by: VJ at May 28, 2004 03:27 AMHey, if they're interested, I might part with my 1991 Volvo station wagon if the price were right, though I am kind of attached to it, it's the car I used to bring my babies home from the hospital. How is it that half the world "knows" instinctively and precisely what you are talking about and the other half just can't seem to grasp it at all? Is it by the fact that the first group has close associations with people who grew up during the Great Depression or experienced an economic calamity during their formative years?
In any event, we should remember that there are people who are not and cannot possibly become rich, because their working lives are far too tenuous -- part-time, seasonal, chronic lay-offs, no benefits, extremely low wages, and so on.
Posted by: Barbara at May 28, 2004 09:10 AMI don't understand why anyone would want to buy a Mercedes or Lexus SUV because they have to be some of the ugliest vehicles on the face of the earth. Even if they weren't ugly, they aren't worth that kind of money. I really don't get it.
I'm happy with my 1987 Saab. I bought it used and cheap and it looks nice.
It seems that being rich is a state of mind rather than a tangible amount of money. My first professional gig about ten years ago as a stage/TV/film technician was as a gaffer for M. C. Hammer. He had millions. When I read that he had filed for bankruptcy because of his poor choices, I realized just how fleeting the tangible definition of being rich really is. I firmly believe that being rich is an illusion. I understood what the armchair millionaire had to say about financial security and wealth. If you aren't constantly looking over your shoulder at creditors, you're rich. It's about peace of mind.
Posted by: Trish Wilson at May 28, 2004 12:47 PM1988 Acura Legend.
Just passed 193K miles the other day.
There's a missing "armrest" on the driver's side door, the armrest between the front seats is busted, the electronics are halfway screwed up (if the temp is above 50 degrees, the cruise works fine, if it's below 50 then I gotta drive 10 miles or so before it kicks in...the anti-lock brake light stays on, etc), but it looks like it's brand new from the outside and it gets me from point A to point B.
I learned years back that there's a difference between having money and being stupid with money, and spending a pantload on depreciable items that give you little return is being stupid with money. Then again, if it's your money, do with it as you wish....me, I have kids and a house that I'd rather spend it on.
Posted by: Ricky at May 30, 2004 10:21 AMMake that 191K.
Posted by: Ricky at May 31, 2004 06:45 PM