Can you consider yourself as wealthy if you have $100 million? Should you stop working for money when you have the $100 million?
Wealth is the accumulation of both your active and passive income. Your active income are the earnings you have received from the job you have actively worked at; like salaries, wages, allowances. While your passive income are the earnings, like interest or dividends, that you have received from a certain activity that does not need your physical presence; like investment.
Are you wealthy when you have $100 million? – The answer lies in your expense profile. If your living expenses is so high, perhaps because of your lifestyle or debt, that you are still financially short, therefore, having a huge amount of money doesn’t mean you are wealthy.
You are actually wealthy when your financial assets could support your lifestyle, after stopping to physically work, over your lifetime. It is, therefore, your passive income that will actually determine the extent of your wealth.
Time and Lifestyle are the powerful factors in wealth generation.
Can you consider yourself as wealthy? What kind of lifestyle would it be?