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With how much money can I consider myself a rich person?

Date: May 20, 2024 Time: 08:51:11

When we think of a rich person, we usually do so with our mind set on those who have earned or won a lot of money, such as in the lottery, and although in many cases this may be the case, in others that income may not automatically convert them into rich people, depending on their own circumstances.

This is why there may be some doubts when it comes to knowing whether or not you can consider yourself a rich person, although the authors of the best seller The Millionaire Next Door, William Danko and Thomas J. Stanley, have their own theory on the matter and have created a simple formula through which to know the level of wealth of a person or family to be considered rich.

In the financial world, it has usually been considered that a person is rich whenever they have a net worth above 950,000 euros, taking into account their real estate assets, fixed income bonds, deposits, shares…, and discounting possible debts. . s such as mortgages or consumer loans.

In this way, based on these figures, only 3% of Spaniards could be considered rich, or in other words, close to a million Spaniards have assets close to or above one million euros. In Spain, the average wealth per adult is around 215,000 euros, although it is distributed unevenly, which means that the most common wealth in Spain is around 90,000 euros.

How to know if a person is rich

If you want to know if you can consider yourself a rich person, according to the aforementioned authors of The Millionaire Next Door, you can apply their wealth formula. This consists of multiplying your age by your gross annual family income (before taxes), dividing that result by ten, which would result in you knowing your net worth.

The book rates people in three different ways: good wealth hoarder for those with a net worth that is twice the wealth level predicted in the formula; poor hoarder of wealth, for those who have a net worth equal to or less than half of the expected wealth; and hoarder of average wealth, for those who fall between the previous two.

However, given that there is no widespread consensus on the matter, there are other organizations and actors, such as the L’Observatoire des Inégalités, a French organization that analyzes the inequality of its citizens, which considers that anyone who enters the country is rich. . 3,673 euros or more per month, which translates to more than three times the minimum wage.

Likewise, its report indicates that a couple with two children under 14 years of age could be considered rich if they have a family income above 7,713 euros per month.

If we are in the case of Spain, citizens receive a gross annual salary of 21,000 euros, so those who are below 11,000 gross annually will be part of the 20% of people with the lowest income in the country. For their part, those who earn a salary of less than 15,000 euros gross per year are among the poorest 33% in the country, while, if you want more than 27,000 euros per year, you will be among the richest 33% in the country.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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