I think that raises an interesting point for those who fall into the 'affluent' category (defined as net worth 500K-1 million) or the poor rich category (1-$10 million). When you look at replacing active income with passive income, someone who has had no problem earning $250K-$500K a year now realizes that to earn an equivalent income requires a significant nut. In other words, $10,000,000 is going to yield that same $500,000 income at a 5% rate. However, rates aren't 5% right now. Its more like 2.5% in a (relatively) riskless CDARS, if you wanted to keep yourself liquid. So, you're only earning $250,000 on that $10,000,000. And after taxes, about $180,000. Allow yourself 50% (90K p.a.) for rent payments, and that's a 3BR in hoboken NJ on the waterfront. While its a comfortable existance, you're hardly 'kickin it'. Unless you draw into your capital. And that's the problem - needing to draw down your capital without income coming in to offset it is going to make anyone feel 'poor'. I would expect the less-wealthy who don't draw down their capital to complain more about being 'poor' in the future. Its a psychological frame of mind.
10 million is 200k income divided over 50 years, it is very good. and I agree you must be very insecure to think that is little... most middle class make only 100k a year and nobody is gonna live 50 years after they've acquired 10 million. I don't understand how people with 10 million can be unhappy if backpackers in australia with $1000 in their pocket can be happy. They should see more of the world and start traveling so they will definately feel better after they see that 99+% of the people in the countries they go to are poorer than them.
Or buy a house/condo/coop for 1.5M cash and don't pay rent. (Pay property taxes and maintenance instead). Now your annual housing expense drops to ~ 20K per annum. You're way ahead. And when you croak, your heirs get an asset worth 1.5M.
Anybody whose yearly take is 180K and rent bill 90K (50%) is silly troll and the whole thing is just a bad way of managing money period. Anybody who is wasting 90K on rent, espeially in Hoboken NJ is just retarded. Anybody who is renting only 3 bedroom apt for 90K is seriously, seriously retarded especially if this apartment is in Hoboken NJ.
I can promise you that more money than you need to fullfill your basic needs (house, food, mobility) does not make you ANY happier. In Germany I would rate this at around 80k Dollar per year if you have a family with 2 Kids. Having more is nice but no one needs it really. I earn much more now and I have been much happier before just because I thought that once I earn more money I would be overall happy all time. Now I learned that its not true and this is kind of sad. Its like a kid waiting on a christmas present. Once you have opened the package most of the joy is over. I try to find joy elsewhere now (doing lot of different sports like kitesurfing etc.) since I realized you can't find it in earning more money.
Usually earning more money equates to more responsibility and decisions which usually leads to stress. You have a choice. Make responsible decisions that can be stressful OR struggle with a much lower wage. I would rather have the higher wage.
I disagree. More money does not necessarily mean more enjoyment or more happiness in life if you are miserable. If I had a super high income I would: 1. Re visit French Polynesia. 2. Take one of those cruises around the Pacific for 60 days. 3. Go and visit places i always wanted to see like India, China, South Africa, Brazil, the list goes on. 4. Start my own pet projects with UNICEF and Oxfam. 5. Drive a car from NY to Benos Aires. 6. Have a family reunion in a special place (Rome, Paris or Honolulu for example) for both my wife's and my family - paid by me. 7. Give a homeless person $1000 when he least expects it. Do random act of kindness for those who are around like tip the waitress $100, ect. 8. Go and be a part of Paris - Dakar Rally. Better do the same race on your own albeit slower,much slower. 9. Live in places that seem worthy of the experience. 3 months in Paris, 3 months in Rio, 3 months in Tokyo. Shit, there is so much to do if one has money that saying economical freedom does not bring you happiness and ability to do what you always wanted to do is retarded. On the other hand, if you have spent the last 20 or 30 years doing nothing, surviving, watching charts and getting a hard on making money or watching porn, then having $$$$ is pointless. Nothing will change and you will be the same paranoid, humble, anti social hermit who eats pizza, drinks diet Coke and spend 20 hours a day in front of pc/tv combo.
It all depends on priorities and what you truly enjoy. I honestly would not enjoy some of the things on your list. I wouldnt want to be on a ship for 60 days or drive thousands of miles. I would definately enjoy Tokyo and Rio, but not France.
The point is if you got plans, dreams then the money will let you achieve them. However, if your life is empty now because you are empty, then 10 or 100 mil is not going to change that, hence people who are rich,or well off and unhappy, stating money ain't all that. It is not the money that is making them into miserable and depressed fucks, it is them.