Saturday, June 27, 2009

Want to be rich? - Part 18

We have been talking about getting rich. This is the 18th post on this subject. I think it is now time to define what 'being rich' actually means. In one of the earlier post I have quoted Buckminster Fuller that links wealth and the duration that the wealth can sustain you if you quit working today. In my mind, that definiteion is a recipe for post-retirement. And makes lot of sense.

However, the definition of 'being rich' has a social angle to it too. You need to appear rich too. How much you wish to appear rich depends on the people you work and socialize with. It is an entirely an external factor and very few can totally resist it. It is all very well to say that you should not succumb to peer pressure. Most do. To a small or large extent.

And then there is this personal desire. My personal desire to is to have two one-week holidays every year and that these holidays should be spent in confort. That would mean staying in a 5 star hotel / resort. If I manage to pull this off year after year then I am doing fine.

So, what is this becoming rich thing. Let's sum it up ...

a) Enough money to fulfil your (and your family's) desires.
b) Enough money to conform to your peer group
c) Enough money to ensure that when you retire your standard of living does not drop off.

Now, you may say that there is no limit to desires or that conforming to your neighbour's expectation could spiral your expenses.
The word 'enough' is to be determined by you.
The limits too areto be defined by you.
Once you decide your limits you know how rich you need to be.

Everyone does not have to be as rich as Bill Gates. It is sufficient if you become as rich as you want to be.
Work towards your definition of becoming rich.

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