Monday, February 26, 2007

how rich are you

i recently came across a site ( where you input your annual income and it ranks you on how 'rich' you are. it's an interesting site that kept my attention for a few minutes as i tried various figures, but it got me thinking. someone making 100k a year could very easily be a lot poorer than someone making half that.

if the 100k guy overspends, it's actually very easy for him to amass debt and be much worse off than the other guy.

it's not how much money you make, but what you do with it that makes you rich.

also, you can be very, very wealthy and not bring in any income at all -- if your holdings are in real estate or the stock market, you could be making unrealized gains and not have any amount of income at all. imagine you are retired, but have a million dollars in the stock market appreciating at 10% per year -- that would give you a million dollars of unrealized income, but $0 of actual income.

doesn't sound too poor to me.

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