What Does it Really Mean to Be Rich? | Top 10%, 5%, and 1% Net Worth and Income Explained

The best definition of wealth and rich I ever heard came from Scott Galloway @TheProfGShow

00:00 Intro
00:44 Net Worth
01:17 What counts as high net worth?
02:53 Net Worth of the Top 10%, Top 5% & Top 1%
03:38 Income - Including Top 10%, Top 5%, & Top 1%
05:32 Scott Galloway’s Definition Of Wealth
08:42 Bloopers

Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

Thanks for watching, I appreciate you!

[Brian-nbfb]

I feel rich when my Doctor tells me I am healthy. Everything else in life is secondary to health!

[scottthomas]

Once again a very insightful video Erin. I am retired and have a liquid net worth in excess of $7, 000, 000. I am a widower with no dependents and no debt. In addition, my passive income far exceeds my burn rate. Therefore, by all definitions I would be considered rich. However, I think it is critically important to emphasize that RICH does not equal HAPPY. After living 68 years, I have met dozens of people who would never be considered wealthy but are extremely happy and feel grateful for the lives they have. Enjoying life, even in simple ways, and surrounding yourself with family and friends is much more important than being rich. Too much emphasis is placed on material possessions. Money makes things easier, but it isn’t the be all and end all for a happy life.

[lkjacob]

Living below your means has always been what I've done. I've told others that it doesn't matter how much you make, you adjust to spend differently. Whether you make $20/hr or $100/hr spend below your means.

[davidknicks]

Erin you are one of my top 5 favorite YouTubers

[hakune]

When my daily job becomes an option, then I consider myself rich! Living frugally and invest; waiting until that amount in my investment

[YeOldeTraveller]

Professor Galloway's definition is quite good, and quite complete.

For me, the threshold is between paying interest and being paid interest. This is when your money starts working for you.

[LostInThezone]

Charles Dickens
“Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness.
Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery”
I read this as a young college age student and never forgot it. It's not an easy goal all the time, but one I recognize from my own experience to be true.

[DLK]

My favorite financial vlogger on the internet! A great definition of rich!

[LeoMoon-vm]

*I'm glad you made this video* it reminds me of my transformation from a nobody to good home, $89k biweekly and a good daughter full of love..

[mikegb]

In the middle of watching your videos, I almost always think, "But what about...." And later in the video, you almost always answer my question.

[kenpumphrey]

I don't have a number. When I quit having any debt, quit knowing when payday comes around, and quit being worried about paying for unexpected expenses, I started feeling comfortable. My income / net isn't the biggest, but it's enough to grant me financial serenity.

[BadPhD]

When I paid off my mortgage and that payment was no longer going out, I felt rich!

[Al-mkxl]

I define being rich by being secure in my finances enough to not worry about running out of money if any unpredictable events took place: stock market crash, health issues, natural disasters, divorce, other events affecting my family including grandchildren. Yes you buy insurances for most of the above, but sometimes that’s not enough especially if they fail you when you need them the most. To summarize: you’re rich when money is not any of your worries ever.

[ld]

Another great video, analysis and discussion Erin. I agree, generally, with Scott Galloway's definition of wealth. In discussions around the meanings of the terms wealth and rich, it is hard to keep short and simple as everyone has nuances in their view. I have always enjoyed work and do it because I want to, not because I had to. I feel the fullness and enjoyment of ones life, family relationships, friends, and activities also factors into the discussion as it applies to the individual. I am retired for 13 years, have a close family, great friends, am active and have expensive hobbies and interests. My passive income exceeds my burn rate by a good margin and I have a healthy 7 figure liquid net worth. My emphasis has always been focused on family, what I am doing, learning, helping my kids and others when needed, activities, and my relationship with God rather than posessions. Keep up the great content Erin and I'll see you on the next one. Larry, Central Valley, Ca.

[HighCountryRambler]

When I was younger I felt $1M was my goal, so I more than doubled it. But the older I get the more I resize being rich has little to do with money, more about happiness and health. BTW- I soon realized saving and investing in not a linear curve, once I passed my goal the returns compounded quicker than I realized. Glad you included the most important part, living expenses. A person making 6 figures plus, but spends 6 figures plus plus, is a "Broke Rich Person"- Dave Ramsey.

[DirettoIZM]

I really like Galloway's definition! My current surplus goes into CDs, money market savings, etc., understanding that eventually inflation will outpace my pension/annuity/interest incomes. Then hopefully, if I live long enough, when I have an income need my growth-based IRA will cover that gap. Thanks for making me feel "rich" 😊😉

[ScottParadisSW]

Excellent insights, Erin - and a great job delivering those insights! I used to ask audiences: "Who wants to be rich?" surprisingly, fewer than half the people would raise their hands. Then I'd rephrase: "Who wants to be financially independent?" That got everyone. "Rich" is subjective and ultimately within our control. Keep up the good work!!!

[paulg]

You nailed it, Erin and that's my retirement goal. Living comfortably below my income.

[SuburbanBBQ]

I agree with Scott's definition of rich. I go to work because I enjoy it, not because I'm reliant on the paycheck. The stress of "I gotta keep this job to survive" mentality is soul crushing. I'm usually not impressed by or jealous of higher salaried people. Lifestyle creep almost always comes into play and they are worse off than I am.

[Ethan-buzy]

My passive income is larger than my burn rate, so I’m Rich. 😊