I think you're wealthy enough when you don't worry about buying semi-important things (I don't mean the basics, but not really extravagant either). The point changes from person to person, but it's pretty low (depends on if you have a family, etc as well), it's just a matter of realizing it.

Wealth is sort of an objective thing. I think you are officially wealthy when your passive income and cash flow exceeds your expenses. It is when you have $3,000 a month in rental income from your real estate properties, but your cost of living is only $2,000 a month. Or the million dollars that you acquired through years of smart investing is now generating $100,000 a year from a 10% return-on-investment asset, but your cost of living is only $60,000 a year. That is when you are wealthy and financially free.

In other words, when your income exceeds your outgo. Good point. You also point out it needs to be passive so that when you retire, you still have enough.

Here is my opinion about the topic and when I consider someone to be wealthy:

1. Figure out how much your current lifestyle (if you enjoy it) costs you annually. For this example lets use $100K.

2. Your age. Let's say that you are 35.

3. Expect to live until you're 100 which means that you have 65 years left. I know 100 a big number but you want to be safe rather then sorry.

4. So, 65 years times 100K equals 6.5M. In other words if you have 6.5M right now and you plan to live your current lifestyle you would be considered wealthy as you could stop working right now and won't have to decrease your lifestyle + you'll earn interest on the 6.5M. If you only put it into a Money Market or Savings account with 5% interest you would have your monthly financial 'needs' more then covered as required by your current lifestyle (100K divided by 12 months equals $8,333). So your capital will continue to increase and you'll keep your lifestyle constant. Do feel the need to 'upgrade' your lifestyle that shouldn't be the problem at all and if you use less then the monthly interest payments that you get you'll continue to be wealthy with an upgraded lifestyle.

That's my definition of being wealthy.

Here is another way to look at it (this is an example of someone who has several millions but whom I would not consider wealthy):

1. An individual who has 100M and is 35 years old.

2. His lifestyle costs him 5M a year.

3. If he would stop working he would run out of money when he turns 55 (excluding interest earned on his capital but if we add that he may run out of money when he turns 60 or 65).

4. In order to consider that person wealthy the total assets would need to be 325M (5M * 65Y).

In the end it depends on your defintion of wealth and opinions differ on that topic.

This is an excellent question, and I think the other comments make a lot of good observations. I think it's sad that most American families today have a lot of debt -- basically in order to start a regular career, life, etc in this country you need to take on debt (education, etc). I'd consider myself financially secure if I could eradicate this and pay for essential things. Problem is, the financial landscape is always changing with inflation, etc. So the only thing one can do is continue working hard and hope they break even with the status quo every few years.

Jiddim,

you're caught in the rat race and I hate to tell you that if you 'just' work hard or harder you'll never be fiancially secure.

Your statement that 'the only thing one can do is continue working hard and hope they break even with the status quo every few years' is a great example of the problems which you, and the majority of the country, have and very likley continue to have unless you change your attitude toward your financial situation.

My suggestion is that you take a close look at your financial situation and evaluate what needs to be changed. Do some research you should find plenty of good advice on-line.

I strongly recommend that you 'invest' your way out of the problems. Set-up a budget plan and (you may need some help with that) choose an investment strategy which will fit your needs. It will take time and discipline but it will get you out of the 'rat-race'.

great question you see its not about how much money you flaunt or have
or what car you drive however people buy from people and well with that said
I am succesful because people like me and key here Im a mentor with EDC gold
and I help!!!! I dont dissapear I show them how to post for free I dont take 2 of theyre sales and they really get to know me and like me.

Alot of us claim to have the secrets ...but do you really......I helped a lady in kansas with ZERO computer experience make 2 k in her first week. NOw is that really great ..for her absolutely if she makes that with EDC consistentl in her eyes that is wealth so you see to each of us wealth means something different.

check out my site no 2ups and I make your website.

I don't think anyone will ever feel they have enough wealth because there will always be a higher financial goal to discover.

However, I think you do have enough wealth when you are able to meet all your debt and outgoings and stay in credit, while also enjoying a reasonable level of living that involves the opportunity to spend time with friends and family and other recreational pursuits.

When you are at that level, I figure you have what you need.

Of course, if you have additional disposable income on top then various investment vehicles to secure and grow your wealth become an option.

2c.

There may be always another financial goal to discover but I think once you reach a certain degree of financial wealth you won't feel the impact on you life-style.

Goals (not just financial) should always be present.

I think there are many individuals which are wealthy (this includes many aspects and not just financial wealth) and to define wealth is really up to the individual.

Wealth is associated with money but to be wealthy, in my opinion, has to do with more aspects of life but I don't think you can be wealthy without any form of financial wealth and/or financial independence.