How to Tell If You’re Rich

So what is the purpose of making more money if one doesn't get to spend it? A colleague of mine (currently retired) used to say that money is not earned until you have spent it.

What is the difference between a guy who earns $20k a year and another who earns $200k a year, if both of them only spends $15k a year?

well, my lifestyle hasn't changed much after i made all my money. i would say i wob't die without it but with it; if my wife say the kids needs this n that etc, i won't think twice kike i used to do 5yrs ago.
on a lighter note, my father who is 71yrs this yr ued to lament how wasteful my car number to put on a lousy 8yr old lexus. he think such nunber only befits rolls or at least an s class or large jag. true enough, when i drive along the roads, many a time, cars tend to stop further from me to admire my.number. often i see their finger showing the one sign for single s car plate.
as for 230 veg rice, i dunno wat oil. can't be olive oil. anyway i eat that for 1meal. any better suggestions?

(26-01-2013, 08:00 AM)paullow Wrote: he think such nunber only befits rolls or at least an s class or large jag. true enough, when i drive along the roads, many a time, cars tend to stop further from me to admire my.number. often i see their finger showing the one sign for single s car plate.
as for 230 veg rice, i dunno wat oil. can't be olive oil. anyway i eat that for 1meal. any better suggestions?

i suggest get a jaguar is a nicer option. ya it cannot be olive oil, most likely is those cheap tasty lard pork recycled oil used many times over and over again (no clear regulation on this yet, nea may be zzzz...)..what it can do is just block the arteries, build tran-fatty cholesterol and increase the risk of heart problem. this place is not like europe or japan..everything from inside to outside is all about $ spinning..so do yourself a favor and take care.

My defnition of "wealth" is having good relationships, lots of love and being around friends and family. What more could one ask for?

There are (fortunately) still things that money cannot buy. I may not be as rich as I would like to be, but I do enjoy the relationships I am involved in, and human interaction makes me feel like the "richest" man in the world.

(26-01-2013, 05:28 AM)HitandRun Wrote: So what is the purpose of making more money if one doesn't get to spend it? A colleague of mine (currently retired) used to say that money is not earned until you have spent it.

What is the difference between a guy who earns $20k a year and another who earns $200k a year, if both of them only spends $15k a year?

The key difference is that the money unspent offers you choices.... choice to stop working, choice to spend, choice to help others (charity or close ones),...

For the person who earns $200k and spends only $15k a year, that means a savings of $185k. The frugality would have gotten him used to a much much lower standard of lifestyle than he could have afforded. That means for every year of savings, he can stop working for $185k / $15k ie 12 1/3 years.... He just need to work 5 years + and after that, he can retire, even without the need to invest...

For me, having such choices in life gives me a lot of happiness...

agree. i think having good family n friends are v impt. health then happiness then wealth in that order...

(26-01-2013, 08:37 AM)KopiKat Wrote: The key difference is that the money unspent offers you choices.... choice to stop working, choice to spend, choice to help others (charity or close ones),...

For the person who earns $200k and spends only $15k a year, that means a savings of $185k. The frugality would have gotten him used to a much much lower standard of lifestyle than he could have afforded. That means for every year of savings, he can stop working for $185k / $15k ie 12 1/3 years.... He just need to work 5 years + and after that, he can retire, even without the need to invest...

For me, having such choices in life gives me a lot of happiness...

That would be unfair modification of the boundary conditions.

What if they just spend $15k a year until they die, i.e. one ends up with small savings and the other has large savings. In other words, their savings only go to benefit their beneficiaries.

My personal take is that one has to be flexible and adaptable. If I have more, I will spend more and if I have less in future, I can shrink my expenses readily, no sacred cows.

The frame of mind between having to work to live and having the option not to work (because one is financially indepedent) but choose to work is very different. Also, living a good life does not equate to living a luxulious life. Happiness is in simplicity and being stressless.

(26-01-2013, 09:50 AM)HitandRun Wrote:

(26-01-2013, 08:37 AM)KopiKat Wrote: The key difference is that the money unspent offers you choices.... choice to stop working, choice to spend, choice to help others (charity or close ones),...

For the person who earns $200k and spends only $15k a year, that means a savings of $185k. The frugality would have gotten him used to a much much lower standard of lifestyle than he could have afforded. That means for every year of savings, he can stop working for $185k / $15k ie 12 1/3 years.... He just need to work 5 years + and after that, he can retire, even without the need to invest...

For me, having such choices in life gives me a lot of happiness...

That would be unfair modification of the boundary conditions.

What if they just spend $15k a year until they die, i.e. one ends up with small savings and the other has large savings. In other words, their savings only go to benefit their beneficiaries.

My personal take is that one has to be flexible and adaptable. If I have more, I will spend more and if I have less in future, I can shrink my expenses readily, no sacred cows.

i doubt a single person can just spend 15kpa till they die. 1) inflation would make it quite impossible 20years later to buy the same things for the same amount of money. 2) in the later days, ill health may set in. medical fees are already soaring and will continue to rise.


in today's day and age in singapore average of 15kpa/per person may be realistic for a decent lifestyle. so a family of 4 would need 60kpa. but 20years later, this figure would definitely increase.

going back to the question of earning 200k and spending 15kpa: to earn 200k pa and just spend 15kpa i feel is too miserly to oneself. if the rest of the 185k is not put to useful work, then what's the point of spending so less and leaving the money to rot?

that's my view.

Chinese has the virtue of working hard to accumulate wealth to benefit oneself and descendants.