On a recent trip to the library, I noticed a book called “How to Get Rich: One of the World’s Greatest Entrepreneurs Shares His Secrets” by Felix Dennis and on a whim I decided to borrow it (in the true sense) from the library.
It’s an interesting book because the author isn’t writing the book to become rich by writing a book, so in my opinion that give him instant credibility. The book has been a good read so far, but what really fascinated me and what I’m going to focus on was his table that reflect his interpretation of Net Worth Wealth Scale.
Wealth Scale (measured by Total Assets):
|Millions of Dollars||Category|
|2 – 4||The comfortably poor|
|4 – 10||The comfortably off|
|10 – 30||The comfortably weathy|
|30 – 80||The lesser rich|
|80 – 150||The comfortably rich|
|150 – 200||The rich|
|200 – 400||The seriously rich|
|400 – 800||The truly rich|
|800 – 1,998||The filthy rich|
|Over 1,998||The super rich|
So based on his wealth scale I’m not even at the level of “The Comfortably Poor“, so obviously if I’m not “Comfortably Poor“, then I must be “Uncomfortably Poor“. Now granted Felix Dennis (the publisher of Maxim Magazine and other mags) is a billionaire, so in comparison to his level of wealth, I definitely could be considered “Uncomfortably Poor”… Still this has me thinking about my current financial state and if I am truly “Uncomfortably Poor”.
Being Uncomfortably Poor!
If I were to lose my job right here and now, I would be uncomfortable, that’s a given… and here’s why. I have a family of four to support, but without my current job, I really don’t make enough in dividends and side income to feed and cloth my family, let alone pay taxes. This means that I would have to liquidate my investment assets and starting the downward spiral by decreasing the value of my net worth. I would guess that after ten years of no salary, I would be penniless and extremely uncomfortable!
That said, I don’t think I would need a minimum of 2 million to be comfortably poor. I think I could probably get by with 1.2 million, especially considering how frugal I would try to be. Healthcare would be my main worry…
So while I don’t live paycheck to paycheck, I still have a large dependency on the paychecks provided by my employer. Eventually I would be uncomfortable without the income stream provided by my place of employment, but not immediately…
So what do you think of the Wealth Scale provided by Felix Dennis? Are you (like most of us) uncomfortably poor?