+1 Except for the thought on luxury cars. Once the mortgage is paid off then why not, if of course, you have been saving all along.
How much do you need to make to be rich in Toronto?
- Thread starter stinkynuts
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+1 Except for the thought on luxury cars. Once the mortgage is paid off then why not, if of course, you have been saving all along.
I understand. However, I believe most would associate "rich" with having expensive cars, big fancy houses, designer clothes, and money to spare for extravagant vacations.
I'm more than happy with my financial situation and I'm sure there are many out there who would be delighted to be in my shoes. I still don't think anybody considers me "rich" (which I'm fine with.. I've never had a taste for the extravagant and I don't figure I will).
These days 1 Mill will buy you the lot with a house that would need to be torn down and rebuilt into something nice comfortable and insulated. Basically looking at 1.5 Mil for Nice neighbourhood, good schools, not talking Forest hill. 5 years ago it was attainable for 1 mil. 2 Kids, looking at needing 20K a year each for university (assuming they won't be at home) = 160K which means RESP getting the government 20% maxed then putting money into TFSA to save for kids.
Goal being that at 45 you could retire, all paid off and enjoy life, travel, be philanthropic and donate your time, work hobbies. Means needing to have Saved / Grown about 5 Mil into TFSA and RRSP that dividends back a 5% return giving you a good amount to live off of and travel and not worry about the costs for insurance to travel for long periods of time. To do that I'd say need to be making 500K a year from about age 30 to have everything paid for and just maintaining with Taxes etc by 45. Now that's rich, not ultra rich and hopefully you've had the money to also have tutors for the kids and time off to spend with them.
Oh also forgot, as being rich, should have that lakefront cottage that will put out another 500K + for and related taxes.
Goal being that at 45 you could retire, all paid off and enjoy life, travel, be philanthropic and donate your time, work hobbies. Means needing to have Saved / Grown about 5 Mil into TFSA and RRSP that dividends back a 5% return giving you a good amount to live off of and travel and not worry about the costs for insurance to travel for long periods of time. To do that I'd say need to be making 500K a year from about age 30 to have everything paid for and just maintaining with Taxes etc by 45. Now that's rich, not ultra rich and hopefully you've had the money to also have tutors for the kids and time off to spend with them.
Oh also forgot, as being rich, should have that lakefront cottage that will put out another 500K + for and related taxes.
And thiiiiiiis is another reason why I'm in school for 10+ years.
I do absolutely love my field of study, but a higher income level later on, definitely helps.
The question should read, how much do you need to KEEP to be considered rich, wealthy, and happy, especially when...
1) Money is no object
2) All forms of "money" is included.
...rather that need to make.
Gyaos.
1) Money is no object
2) All forms of "money" is included.
...rather that need to make.
Gyaos.
If you had $1 Million, why buy a house, etc.? Keep the million, print cash from it, and stay in a Holiday Inn Express, et al, with free breakfast, maid service, Priority Club points, heat, AC, TV, refrigerator,
shower, soap, shampoo, toilet, etc. for a few years.
See the hint, I'm providing? LOL.
Gyaos.
Single guy fine, but as a family of 4, which was the Definition in the first post, not so much, also doesn't work well for school districts etc. Living like that wouldn't make most people feel like they're rich, more like they're transient. Plus if you buy the Million $ home in T.O. it's still going up. The 1.8 plus ones have really slowed down.
It's interesting to note that most of the respondents have gone with the 550K plus answer as to what would define rich. This made me wonder, is that a reflection of what the respondents income is or are we just programmed by our consumerism driven culture?
I personally think that anything less than a million a year is not rich. Once you break the million dollar mark then it's a whole new world
I personally think that anything less than a million a year is not rich. Once you break the million dollar mark then it's a whole new world
http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/famil106a-eng.htm
For an individual yes. For couplel housheolds it's top 4%
For an individual yes. For couplel housheolds it's top 4%
Let's refer to the Credit Suisse Global Databook 2014 for a worldwide perspective on individual wealth.
Number of adults in the world with a net worth of USD $1 - $5 million is 30,785,900
Number of adults in the world with a net worth of USD $5 - $10 million is 2,532,800
Number of adults in the world with a net worth of USD $10 - $50 million is 1,391,200
Number of adults in the world with a net worth over USD $50 million is 128,200
Therefore, the number of adults with a net worth of USD $1 million or more in the world is ~35 million (roughly the same as the entire population of Canada).
Although there are 7 billion people in the world (i.e. 7000 million people), we can basically ignore the majority of them since most live in extreme poverty.
Number of adults in the world with a net worth of USD $1 - $5 million is 30,785,900
Number of adults in the world with a net worth of USD $5 - $10 million is 2,532,800
Number of adults in the world with a net worth of USD $10 - $50 million is 1,391,200
Number of adults in the world with a net worth over USD $50 million is 128,200
Therefore, the number of adults with a net worth of USD $1 million or more in the world is ~35 million (roughly the same as the entire population of Canada).
Although there are 7 billion people in the world (i.e. 7000 million people), we can basically ignore the majority of them since most live in extreme poverty.
Individuals making $1 million per year are in an elite category of ultra rich.It's interesting to note that most of the respondents have gone with the 550K plus answer as to what would define rich. This made me wonder, is that a reflection of what the respondents income is or are we just programmed by our consumerism driven culture?
I personally think that anything less than a million a year is not rich. Once you break the million dollar mark then it's a whole new world
You can find the link to the 2014 report on this page:
http://thenextrecession.wordpress.c...n-48-10-own-87-and-bottom-50-own-less-than-1/
The 2013 report breakdown is below:
In the 2011 report, it showed that only 29,000 people on earth were worth over $100 million.
http://thenextrecession.wordpress.c...n-48-10-own-87-and-bottom-50-own-less-than-1/
The 2013 report breakdown is below:
In the 2011 report, it showed that only 29,000 people on earth were worth over $100 million.
I voted for more than 550k to be rich but I consider rich people who make above 1MIL/year.
In reality if you live in Toronto and not in the suburbs in a nice neighbourhood (forest hill, rosedale, hogs hollow) you have to spend around 2MIL for a decent home and to pay the mortgage, have 2-3 decent vehicles Benzes and BMW (not Ferraris and Lamborghinis), pay for insurance, maintenance and have two children to pay for and take care of (hockey, karate classes, piano classes, clothes, groceries) and to maintain that lifestyle you would need about 20K/month, and thats just maintaining your lifestyle and not accumulating any more assets.
In reality if you live in Toronto and not in the suburbs in a nice neighbourhood (forest hill, rosedale, hogs hollow) you have to spend around 2MIL for a decent home and to pay the mortgage, have 2-3 decent vehicles Benzes and BMW (not Ferraris and Lamborghinis), pay for insurance, maintenance and have two children to pay for and take care of (hockey, karate classes, piano classes, clothes, groceries) and to maintain that lifestyle you would need about 20K/month, and thats just maintaining your lifestyle and not accumulating any more assets.
It's part of both. I cannot find the link, but I did come across an article earlier this year that showed a breakdown of people's income and what they thought they would need to make to be wealthy. The greater the income of the person, the the more money they thought they needed to consider themselves wealthy.This made me wonder, is that a reflection of what the respondents income is or are we just programmed by our consumerism driven culture?
http://www.nytimes.com/2014/06/17/u...-changes-with-income.html?_r=0&abt=0002&abg=1
Makes sense. To someone in Africa with nothing, I would be considered ultra rich. To a billionaiare, I would be a peasant.
