(25-01-2013, 02:37 PM)FFNow Wrote: [ -> ]So true... "If you want to be rich, you have to stop acting rich… and start living like a real millionaire."
Concepts are similar to this book called Millionaire mind. Loved it.
Some personal observations. The picture is really quite nuanced in SG. There are many kinds of rich. And i think nowadays in SG, to reach the lower rungs of rich has to be at least 3M SGD in net worth excluding current home. 1M just not enough. My guess is at least 60K give or take 10K such people.
The description of the frugal, camry driving, minimal branded goods etc millionaire is usually because they got rich through savings, working smart and hard and investing in appreciating assets. Usually hit 1M networth mid/late 40s. So their spending patterns fixed already and will not change even if they get richer in late 40s or 50s. This is very true and i experience it myself in terms of fixed spendign patterns.
Another group are the flashy rich. They either got rich young due to business or hot shot career in banking, sales, govt or some are 2nd/3rd generation? Drive sports car/BMWs, branded goods, business class travel etc.
Interesting things is that both groups could have same net worth but differ very much in flashiness. I would say in SG, if you achieved 3M networth and are <35... probably will be the flashy millionaire. If in 40s or 50s (like those i just saw at a PB outlook dinner recently), then will be the frugal millionaire type.
Another obvious factor is net worth. I think if one is above average rich (read at least 20M networth), then even being flashy does not affect the numbers much. If your passive income exceeds 1M safely, seriously driving a sports car, having a merc, spending $120K a year on travel and food, $50-80K on bags, does not really dent the pocket. Whats more if the household has active income on top of that 1+M.
So i would say, for SG (and that probably is higher than most of the world except tokyo, nyc and zurich)..
1-2M net worth - Upper middle class
3-5M net worth - Rich but be careful on how you spend which is the majority situation.
5-20M - Average rich but got more and more leeway in flashiness
20M and 100M - Above Avg rich ... can be flashy without much hurt unless you lust after private jets and sports teams
>100M - only know a few such people. Actually daily life is like the tier below but you hear snippets like art collections worth 5M, private jet holidays etc......