How much defines a wealthy person

Alkers86 said:
Globally, everyone on this website is wealthy so it all depends on the lens you are looking through.

The €3M scenario mentioned in the OP, I would consider very wealthy for Ireland, most people have an outstanding mortgage and substantially less than that in a pension pot or in investments.

To me wealthy is being able to live without watching your spending. I am by no means rich myself but I would have to increase my income by probably a factor of 10 to substantially alter my lifestye, so I have given up on chasing promtions and higher salaries and am instead trying to get more free time and make the most of it.
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DazedInPontoon said:
Some people think spending money is a sign of wealth when in many cases it's frugality and the declination to spend money that makes people wealthy.
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For many, spending is a sign of wealth, especially for some from more working class areas. Spending money on designer gear is a sign to others that you are earning good money and can afford designer clothes.

Blackrock1 said:
One would wonder whats the point of wealth if frugality and declination to spend money is your mindset...
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Frugality being spending less than you earn and investing the difference

...of course, it should be spent at some stage. For most, it is building wealth over your working lifetime so you can achieve financial independence. That is being able to live the life you enjoy and not having to worry about running out of money or going to work to fund it (you may want to continue working, but you don't have to).


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Blackrock1 said:
new cars seem to drive people mad, what difference does it make if people have new cars?
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New cars are the easiest way for people to project wealth, even if you are not wealthy. With unsecured loans and PCP, it is pretty easy to get a car loan. Some people are in effect renting their car as they roll over the payments to a new car every 3 years.

The brand also attracts attention. You can buy a second hand BMW or Merc and get comments. Buy a brand new Kia for the same price and no one says a thing.

When people say "how can they afford that?" to me, it is most frequently used in relation to cars.

Ironically, the majority of my very wealthy clients don't give a damn about cars and drive ordinary cars, usually until the don't run anymore.
 
Steven Barrett said:
Ironically, the majority of my very wealthy clients don't give a damn about cars and drive ordinary cars, usually until the don't run anymore.
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Here's one for don't give a damn about cars and one car is currently 19 years old, still passing the annual test for running in the city etc. My 'new' car, as we need 2, is a small Fiat. To me putting money in cars is a complete waste of money, it depreciates the minute you sign for it. The last thing we want is to stand out in a big flashy car. One landlord I knew in Galway who owned about 20 properties always collected the rent in a banger. Never left off the impression he was wealthy. Smart man. The only time we had a large car was for travelling with the children long distance when they were younger.
 
I'd consider myself moderately well off. I own a decent car and like driving.

I get the whole depreciation thing however the only debt I have is 37 k on one rental property (own a few).That's on a tracker mortgage that I write the interest off 100% on.

Pension is fully funded to max etc.

There are no pockets in shrouds.There seems to be a (faulty to me) misconception that wealthy people wear bailing twine to keep their trousers up, drive a beat up 2001 Micra, and deny themselves anything approaching luxury. If they're not rooting about in neighbours bins then they can't be that wealthy ;)

What's the point of it if you fail to enjoy it....its there to be spent albeit without throwing it around like snuff at a wake.

Each to their own but I'll pass on the self flagellation, sack cloth and ashes.;)
 
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Annieindublin said:
Some people love their cars and get enjoyment from driving a new one every few years.
Others travel. Etc
I guess the travelling isn’t so visible daily…

I normally don’t notice but a neighbour has recently added a 241 porche and a 241 Range Rover to their driveway. I’m wondering what 2 cars like that are doing on my road
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Some people borrow themselves to death just to appear wealthy and rich.They could be earning 500k per year and still be in serious debt.Methinks.
 
Knuttell said:
I'd consider myself moderately well off. I own a decent car and like driving.

I get the whole depreciation thing however the only debt I have is 37 k on one rental property (own a few).That's on a tracker mortgage that I write the interest off 100% on.

Pension is fully funded to max etc.

There are no pockets in shrouds.There seems to be a (faulty to me) misconception that wealthy people wear bailing twine to keep their trousers up, drive a beat up 2001 Micra, and deny themselves anything approaching luxury. If they're not rooting about in neighbours bins then they can't be that wealthy ;)

What's the point of it if you fail to enjoy it....its there to be spent albeit without throwing it around like snuff at a wake.

Each to their own but I'll pass on the self flagellation, sack cloth and ashes.;)
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hear hear!
 
Knuttell said:
I'd consider myself moderately well off. I own a decent car and like driving.

I get the whole depreciation thing however the only debt I have is 37 k on one rental property (own a few).That's on a tracker mortgage that I write the interest off 100% on.

Pension is fully funded to max etc.

There are no pockets in shrouds.There seems to be a (faulty to me) misconception that wealthy people wear bailing twine to keep their trousers up, drive a beat up 2001 Micra, and deny themselves anything approaching luxury. If they're not rooting about in neighbours bins then they can't be that wealthy ;)

What's the point of it if you fail to enjoy it....its there to be spent albeit without throwing it around like snuff at a wake.

Each to their own but I'll pass on the self flagellation, sack cloth and ashes.;)
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Oh you are dead right - enjoy it! What’s the point otherwise!
I’m not so interested in nice cars but I love a good holiday! So I plan to spend any wealth on nicer more luxurious trips! It helps me get up for work on a daily basis!
 
Steven Barrett said:
The brand also attracts attention. You can buy a second hand BMW or Merc and get comments. Buy a brand new Kia for the same price and no one says a thing.
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`

Reminds me of a 'big time builder' I once knew and long dead. He used to drive a Rolls/Bentley, giving the impression that he was worth a few bob. This was pre the 'new number plates'. He would buy them in the UK in immaculate condition with full dealer service history, but they were 15/16 year old. One day he arrived in his 'new' Bentley. We found it advertised in one of the Classic Car Mags. It was about £12K, the price of a new Ford Fiesta at the time.
 
Cars are the biggest destroyers of wealth. I had a client, driving a brand new range rover sport...told me, it's to appear successful down the golf club. He was paying 1000 per month on finance.
 
fistophobia said:
Cars are the biggest destroyers of wealth. I had a client, driving a brand new range rover sport...told me, it's to appear successful down the golf club. He was paying 1000 per month on finance.
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and he would have put a massive deposit down as well, 1k per month seems low for a RR, they are about 130k new,

If he could afford it so what?
 
major said:
Farmers in general know they are wealthy land value wise....its the actual agricultural monetary returns why they talk poor
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To be fair to Farmers - they may sit on millions of euro worth of land. But if they are cash poor due to low agricultural prices, they often still struggle day to day. And it is not as simple as just selling the land!
 
Blackrock1 said:
new cars seem to drive people mad, what difference does it make if people have new cars?
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In the context of the Celtic Tiger and subsequent crash they were the most obvious signs of something amiss. No new cars for a number of years afterwards. No vans because no tradespeople had work.
 
fistophobia said:
People talk about frugality like its some sort of mental illness.
I am frugal., and I've heard every jibe there is.
The ultimate freedom is financial freedom.
I dont feel the need to show off by spending on status goods.
Its more about what you can afford to let go of,
and reduce your wants.
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obviously but ive seen frugal people that are trapped by their frugality also
 
There's frugal (nothing wrong with it) and then there's meaness with money, the type that disappears when it's their round in the pub or drinks buckets of quite expensive wine when at a meal and then insist it be split evenly even though others in the party didn't drink or did so moderately and from a house wine.

I actively avoid these skinflints however would be frugal when getting best value for money from any purchase or service but wouldn't think twice about expense when on holiday or on a night out etc.
 
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I was only puzzled by the expensive cars, 100k +++ outside a very ordinary house on a very ordinary road. But I guess a lot of it is using finance. Low mortgage relative to income leaves cash for spending on car finance.
Each to their own. I’m happy with my old car, or at least I was until it became unsuitable for my needs. Pity. I liked having paid for cars. They cost enough to keep without adding wealth to the banks
 
major said:
Farmers in general know they are wealthy land value wise....its the actual agricultural monetary returns why they talk poor
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That's certainly more true for some than others but talking poor gas always been a key strategy for farmers regardless of sector

Agricultural prices have actually been in a very strong period for about five years now, especially dairy markets but beef and sheep are also strong right now, land prices reflect this
 
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