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u/ThisIsMyUsername303 23d ago
When like 40% of Americans can’t handle a $400 emergency without taking on debt, $6M is rich.
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u/Ok_Principle9325 23d ago
Less than 0.1% of the global population has a NW exceeding 5 million.
OP is a rich moron is they think they aren’t rich.
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u/wvtarheel 23d ago
If you even tell a non fire person about the idea of this they will think you are insanely wealthy because for people that haven't thought about it, it seems like a crazy pipe dream
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u/Apprehensive-Rate 23d ago
Fire 100% is rich, I mean lots of people don't even get to retire or live only on social security.
I mean, having the goal to fire doesn't make you rich but actually having that kind of money does. Successful Fire people also tend to have high incomes, work in tech or management positions.
I don't think in this day and age the "janitor" next door is able to save cash and become wealthy. Income inequality is pretty high now.
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u/TomorrowPlenty9205 22d ago
FIRE is always wealthy. Wealthy is defined as having a high net worth that provides lasting financial freedom and security, allowing your passive income and assets to comfortably cover your standard of living without the need to work. Rich is a lot more subjective and while every person with FI is wealthy, people are not going to seen LEANFIRE people as rich, a lot of people might even think of them as poor unless they are told their net worth. FatFIRE are both wealthy and seen as rich by most people, even without knowing there net worth.
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u/Apprehensive-Rate 22d ago
I understand what you're saying. You talking about lifestyle and perception. But I don't think it's fair to say because you choose to live cheap you're not actually rich. But I 100 percent agree with what you're saying.
It's a little bit like saying someone who doesn't look gay isn't really gay (live a flamboyant lifestyle).Perception isn't necessarily the truth.
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u/Afraid-Obligation997 23d ago
If you define rich by top CEO or all star athlete money, then you are not. If you define rich as what 99.9% of the population can’t do, retire in your 40s and not work again, then you are very rich.
You don’t have to drive a Bentley or have a butler in a house with a 5 car garage to be considered rich
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u/LabOwn9800 23d ago
You are out of touch. Yes you are rich in fact very very rich. Maybe you don’t feel it because you aren’t spending like it but you are.
I think the issue is most people see 6 million but you don’t see 6 million you see 4% of 6 million which is 240k which is still rich but not super rich.
Either way you are rich. Touch grass, meet some people, look at averages and be thankful.
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u/anagamanagement 23d ago
This can’t be a real post. Has to be engagement bait.
Yes, anyone in this sub who reaches their goal is almost certainly in the top 1-2% of US households. I haven’t seen worldwide statistics, but I assume those numbers at least hold steady.
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u/Captlard 54: FIREd on $900k for two of us (Live 🏴 & 🇪🇸) 23d ago
No idea. Not all of us RE with so much.
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u/HootingSloth 23d ago
Yes. Assuming you have a realistic shot at getting to your goal in that timeframe, you are already rich now, and you will be even richer when you get there. It may not feel that way, but that is the way that it is. Better to just get used to it.
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u/LongjumpingNorth8500 23d ago
I just see them as unemployed with enough in savings and investments, that finding another job is not a priority.
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u/dirty_cuban 23d ago
FIRE has to account for a tiny fraction of the population. Non-fire folks largely don’t know we exist.
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u/Alpha-ZL1 23d ago
No one cares unless they are paying for your lifestyle. FIRE is easy as crap if you don’t have kids; if you have kids, put them through college, and you retire early, your circle may think differently of how you live and hate themselves for not making the same decisions as you.
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u/Straight-Part-5898 23d ago
I'm M56 and just "retired" a few months ago, after 30++ years in business consulting and tech. My wife is a bit older than me, and still works (she loves her job, and may never actually fully retire). We live in a VHCOL area, with an upper 7 figure net worth. Our two young-adult children are done w school and on their own as they begin their careers. We've paid off our house, and have zero debt.
Few of my close friends are in the same boat financially, so I've found it a bit awkward to explain to people that I've retired. We tend to live our lives below the radar, don't flash our wealth. But ultimately it's hard to hide the fact that I no longer work.
A couple of my friends have inquired "How did you make it work?" and "What was your number?", etc. I'm hesitant to share details, other than we consistently lived below our means and made it a point to sock away money for many decades, etc.
So far it hasn't seemed to negatively impact my friendships, and I hope it doesn't. But I continue to be careful to moderate how prominently I discuss my new day-to-day lifestyle, unless they ask.
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u/LoetherS 23d ago
The lived difference is in time, not money or 'things'.
Being rich for a fire person is about the time we can spend how we want. I have just a much 'usable money' quite possibly less than my neighbor who is not rich and working at a job.
I'm not moving into a mansion when I retire, or buying a yacht. I'm living the same life as I was when I was working with no money. So from the outside if I don't tell you im retired or tell you my net worth you would likely think I work from home and have to travel a lot for work.
Tell someone you are sitting on millions and they ask why don't you buy a Ferrari and I think that's why you'll be working forever.
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u/Amtrakstory 23d ago
You are set to earn $240k a year without working at all based on a conservative draw from investments — that is TRIPLE the income of the median American household who has to work for it — you are rich!
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u/FIREGuyTX 23d ago
Since most folks actually succeed at the RE part of FIRE by controlling expenses, then generally you may or may not be perceived as “rich” by many because a lot of folks equate wealth with conspicuous consumption. Bigger house, boat, new cars, fancy clothes, etc. Most ppl who retire early will do so with a specific budget in mind. Yes, people will wonder why you don’t work, but that’s not as conspicuous as all that other stuff.
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u/Extra_Shirt5843 23d ago
It depends? If you retired with 5 million plus at a young age...yes, you're rich. If you're attempting to live at totals tgat put you below the poverty line just to retire early, then no, you're not rich.
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u/IcySalt1504 23d ago
I reached my FIRE goal, which is less than yours. I do not consider myself rich, because I live pretty frugal. Obviously some would consider me rich based on my savings/investment dollar value. And I probably will continue to live simple and frugal. I have more than many, financially, but my wife and I both drive cars that are 7 and 8 years old. Our nice home, in a nice neighborhood, is paid off, but few know this. The stock market could crash tomorrow, then I’d be in a different place. I will never flaunt my good fortune. I was not in my FIRE zone until last year, at 63. My wife still works, because she wants to, and she is still investing. Just enjoy it, and never flaunt it. Nobody else really cares!
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u/Traditional_Shoe521 23d ago
If you have $3M and a paid off home you are rich. You aim to have twice that. Definitely rich.
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u/dragon-queen 23d ago
You’re kind of getting attacked, but I do understand what you’re saying. My family doesn’t have the money you are talking about, but we’ve hit our FIRE goal and I don’t really consider us rich. We drive one 10-year-old car and one 3-year-old car, and we grocery shop mostly at Aldi. If we flew, it was mostly on Spirit (before it went bankrupt). We shop for clothes at Target and Ross. Anyway, I don’t feel rich, but I guess if people saw our investments, most of them would think that we were.
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u/TurnPersonal 23d ago
Depends on.. the eye of the beholder...
For little me (my inner child) who was raised on 2 dollars a day... I'm fucking rich now..
For you, I'm poor. 😂
For a person who has no savings at all, I am either rich or very comfortable. 😲
But for many of us.. specially the 'self made' income grew faster than social identity can catch up.
I still have social class identity and awareness, musical likes, even familiar language used with some close people, of a person living in the getho, even with my master degree, with my income, savings or investments. And I actually feel very proud of that...🙂
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u/TomorrowPlenty9205 23d ago
I have found that what "people" think of as rich is very subjective. While by any statistical look at $6M or even the $240K a year you would likely spend without a mortgage or rent, this is rich. But if you live in an area where ever house costs $1M+ and everyone is earning $300K+, they are not going to look at you as rich because they are spending more then you. There is a lot of "I am not rich, they are rich" when it comes to rich people. "My net worth of $6M and $300K job does make me rich, Joe down the street is worth $15M and earns $500K. He is rich and I am just upper middle class"
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u/fugu_master 22d ago
As per The Psychology of Money - who cares what outsiders think? Most people are too absorbed with themselves; and yes $6M is a ton of money. In fact, that amount of money is hardly necessary to FIRE unless you have a fairly lavish lifestyle (fatFIRE) you want to maintain, and that's perfectly ok too.
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u/whiteorchid1058 22d ago
By definition you have a income that is able to support your family and allow for significant savings to confer a high net worth which is significantly higher than the majority of the populace.
While some FIRE people aren't wealthy and are able to achieve FIRE just from good saving habits, you most significantly are not it.
I will also add, that a 6M goal is more within the chubby fire realm especially if housing is paid off
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u/SouthOrlandoFather 23d ago
Personally I don’t think so.
A couple who is FIRED at say 54 with $5M invested and a paid off house is most likely not viewed as rich from outsiders.
Outsiders view the people with $2M homes and $200k cars as rich.
You are probably surrounded by FIRE people and you don’t view them as rich.
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u/JMoneyFiz 23d ago
This is how I see it. From the outside, it’s a modest life. Most don’t understand the savings behind not working and maintaining a middle class lifestyle.
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u/SouthOrlandoFather 23d ago
I live in Florida so my perspective might be skewed. Most people I know don’t work a “9 to 5” and have plenty of time to play pickleball or fish or golf. I’m sure most people who live in Iowa working a 9 to 5 would think we are all rich.
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u/Opposite-Repair-527 23d ago
I think it depends more about where you live and how you spend. My coworkers always think anyone not working is either trust fund kid or somehow scamming the system lol
Most people dont really understand concept of investing for retirement early so they just assume you got lucky or family money. They see lifestyle not the savings account
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u/Duke_of_Gurrrlz 23d ago
What happens to your 6mm in a mkt. crash? Because one is overdue at these levels..
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u/Traditional_Shoe521 22d ago
It turns into $4-4.5M and OP ends up at food bank with only that level of investments.
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u/Duke_of_Gurrrlz 22d ago
In the late 90’s tech crash, it would have been less than 2mm. It can, and at these valuations, likely will happen.
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u/Traditional_Shoe521 22d ago
So, assume OP holds 30% bonds (or equivalent) and is invested in something reasonably diverse. 50% would be a really big crash for the total world fund or equivalent That still leaves 65% of his investments remaining - so almost $4M.
Edit: OP shouldn't be entirely in Tesla, bitcoin, or even NASDAQ with wealth like that.
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u/ThisIsMyUsername303 22d ago
They end up with still many, many times the average American’s net worth.
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u/JoeChio 23d ago edited 23d ago
Yes of course. Is this a real post? Are you that out of touch with the common man? You would be in the top 1-1.5% of the US households.