How to define Wealth?

by ChingFoo Lieu on 29/03/2012

What is your interpretation of being wealthy in monetary term?

Is it any of these?

  1. Having one billion dollars of disposable cash?
  2. Be able to afford to drive an Audi R8?
  3. Be able to shop till you drop without having to worry about running out of money?
  4. Travel across the globe in style for one full year without going bankrupt?
  5. Be able to afford to send your kids for tertiary education overseas and still be able to retire comfortably?
  6. Owning a private jet?

One may argue wealth is only relative. However, it is crucial to make the distinction between real rich and  phony rich so that one doesn’t get embroiled in a lifestyle led by many wealthy pretenders.

Materialism is one of the most destitute pursuits that exists.

Once in a while, we come across a quantifiable definition of wealth which seems practical and doesn’t sound insurmountable.

These 2 criterion are quoted from the book, Millionaire Teacher, the Nine Rules of Wealth you should have Learned in School.

  1. You should have money to never work again, if that’s your choice
  2. You should have an investment, a pension or a trust fund which generates twice the level of your country’s median household income over a lifetime.

How would this apply to you?

I simplify this in one sentence.

If you live in Malaysia now, you would have a passive income of RM 9,000 a month.

Straightforward, isn’t it?

Malaysia mean household income

This is an excerpt from Capital Malls Malaysia 2011 Annual Report, Department of Statistics projected data based on historical growth rate by CBRE Research

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