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You might be richer than you think. (How rich is rich?)

Sunday, November 14, 2010

Someone asked me how to be rich? I asked him what did he mean by rich? That got him thinking. 

Is a person rich if he has $1m in cash? Is a person rich if he has $1m in cash and a property worth $1m at the same time? 

Or is a person rich if he has a net worth of $5m? What am I trying to say? To me, rich is a relative concept.






If we keep comparing ourselves with the next richest person, it can never end. Of course, if we became the richest man in the world, then, there is no one left to compare with but how many Bill Gates can there be? 

Stop comparing with others.

I think the most important measure of wealth in this world has to be "happiness"!  

Yes, I remember how I shared a moment with my younger sister about how our family was not doing very well when we were in our teens. She said "But we were happy."  That was a simple statement but a very poignant one. 

What is the point of having lots of money but be unhappy?






Having said this, we should not be so blind as to think that we can be happy without money in this modern world as money problems could surface sooner than later. 

So, we still need to make money, to save money and to make our money work harder for us. This is so that we do not have to worry about money matters in future. 

The idea is to have enough passive income to take care of our daily needs and some wants.

Of course, what each person needs is different. So, how much passive income is required is also different from person to person. 






Just do not forget that being happy is more important than the pursuit of money. 

If we can be happy every day of our lives, we are truly rich.

If your life is a happy one, you are richer than you think.

Related post:
Passive income: A higher purpose.

14 comments:

Anonymous said...

it is always that never ending "little bit more".

JW said...

AK!!

My related posts!

1 million dollars... so what?

Financial Relativity

:)

AK71 said...

Hi JW,

Thanks for sharing the links! Cheers! :)

Anonymous said...

You are rich when you can walk to the seaside, breathe in fresh air and watch the sunrise with someone.

You are rich when your possessions last much, much longer than others.

But you are really, really rich when you can eat anything without "side-effects" to your health or pockets.

And you are really, really, really rich when you can give about 10 % of your wealth or more in your lifetime and still don't feel the pinch.

Hope I can give more.

Lawrence.

AK71 said...

Hi Lawrence,

Thank you so much for sharing such a poetic and yet realistic perspective on the subject. :)

I have a DONATE button in my blog... Just being cheeky. ;-p

Anonymous said...

Hi AK71,

You have mistaken me about donation.

I mean "the poor are always with us not to mention the less capable".

And besides, most people have their favorite cause of charity.

As for you, you are too capable and rich too.

Ha! Ha!

Lawrence.

AK71 said...

Hi Lawrence,

Er... nothing to do with capability or wealth. Also, I don't think I am rich. :(

The DONATE button is for people who feel like rewarding me for my blogging efforts. It feels good to be appreciated. ;p

Actually, I rather people find good deals in the ZUJI banners in my blog. That way, they get a good deal and I get a small commission too. :)

Anonymous said...

Hi AK71,

Your unselfishness in sharing your "hard-earned" and accumulated all round knowledge with people like us with low education is really appreciated.

If not why I choose to post in your blog?

By posting in your blog, I really appreciate your ideas, knowledge and your outlook in life which money cannot buy lah.
Thank you.
Lawrence.

AK71 said...

Hi Lawrence,

You make me sound like a Saint. I am not as selfless as you make me out to be. ;p

Please do continue visiting and I look forward to hearing from you again. :)

Akhil said...

Hi AK,

Do you think a method can be devised of converting happiness into a $ value. Then for a money minded society and human nature, it would be so much easier for us to value that half day off to spend some time with family.
At the same time, the happier you were in that time, should equal you making more money and therefore valuing it more.

AK71 said...

Hi Akhil,

Unfortunately, happiness is not a currency in the modern world. :(

In the modern world, we can have lots of money and be unhappy but can we be happy without any money?

Money is important but the pursuit of money could also make us unhappy. So, it is really up to each one of us to find a balance so that we stay happy even as we try to make money.

Ray said...

rich hope to get richer. the greed will drive them to work longer, harder, smarter. i believe there's no end to earning more money, so learning to be self content is very important otherwise working 24 hours is the best way to fully maximise your time on earth to earn more.

personally, if i can afford to feed my family, give them proper healthcare when needed, not worry abt retirement, can spare some to the less fortunate, that's being rich enough.
any more money but require additional work is, to me, diminishing marginal returns.

AK71 said...

Hi Ray,

Yup.

"We only need so much money in life. The rest is for showing off."

:)

AK71 said...

Well known investor, Dr. Michael Leong who passed on at age 54 in 2016 said before that family is more important than anything else (including his investments and money).

Know when we have enough money and stop chasing after more.

Remember, people only need so much money in life. The rest is for showing off.

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