[quote=bearishgurl]
You just explained I was trying to on this thread to poster(s) who seemed fixated on tract housing. Owners with lots of equity in valuable properties in SD are the truly wealthy. In my mind, wealth has almost NOTHING to do with income and everything to do with assets.[/quote]
That’s a pretty broad generalization. I don’t think anyone here think tract homes are better than custom homes. However, most of us here can’t afford those $2M+ custom homes.
Are you not truly wealthy if you live in a lower MC area, but have a lot of $ in savings, investments, and a pension that’ll take care of you for life? Like one of my favorite wealthy people (Warren Buffett), he’s still living in his house that he bought in the 50s and its current value is suppose to be around $500k. Do you have to have lots of equity in valuable properties to be truly wealthy? AFAIK, income is what allow people to accumulate assets, so you can’t have assets w/out either having current or prior income. If you have $10M in the bank, even making 3-5% in interest will mean your yearly income is $300k-500k. That’s a lot of income. There are passive and active income, but they all are income.
To me, truly wealthy people are those who have their money working for them, not them working for their money. If one has no income, that means through daily expenses, their asset is dwindling, and eventually it’ll all be gone. So, I’d expect truly wealthy people to have income that’s higher than their expensive, so that their asset will forever be growing, but their money is working to make them income instead them working for the income.
