Chapter 1: Introduction: How Rich?
Key concepts: Introduction: How Rich?
1. Introduction: How Rich?
Target Audience & Goal
- Aims for 'common or garden rich', not billionaire status
- Wealth that buys time, freedom, and independence
- Dismisses pursuit of astronomical fortunes
The Relativity of Wealth
- Purchasing power erodes over time
- A million today is worth less than half of 1980
- Defining 'rich' is a moving target
Two Frameworks to Measure Wealth
- Liquid assets vs. total net worth
- True net worth includes illiquid assets like property
- Wealth lists are often inaccurate due to complexity
The Wealth-Happiness Paradox
- Money doesn't guarantee happiness
- Wealth can bring stress and guilt
- Focus is on financial goal, not philosophy
Arbitrary Nature of Measurements
- Alternative gauges like 'Availability on Request'
- Perceived vs. accessible wealth differs
- Old money may be asset-rich but cash-poor
