Welcome to Wise & Wealthy: A weekly newsletter full of proven ideas to become smarter and wealthier. I send this every Monday.
#135 – July 29, 2024
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Rich vs wealthy
What does it take to be considered “rich,” and how much should you earn to be “wealthy”? According to the Internal Revenue Service (IRS):
- The top 20% of earners need at least $130,545 per year if they live in the 100 largest U.S. cities
- To qualify for the top 5%, you’ll need to earn a minimum of $335,891 per year
- An annual income of at least $540,009 puts you among the top 1% of earners in the U.S.
- And if you have at least a million bucks in liquid assets, you’d be considered a “high net worth individual”
But the truth is that being rich and being wealthy are two different things. When WSJ interviewed people who earned almost enough to be part of the 1%, most of these folks said they still “didn’t feel rich.”
If you’re happy making $250,000 a year, bumping that up to $500,000 won’t make a major difference to your happiness. But if your life feels miserable despite your income, suddenly doubling what you earn won’t make you any happier.
More facts, figures, and advice on being rich or wealthy in my new article.
↳ Rich or Wealthy: What’s the Difference?
One interesting thing
Life can be overwhelming sometimes and we no longer have time to reflect. But as Epictetus advised:
“When you set about any action, remind yourself of what nature the action is.”
This is especially true for long-term actions. Before starting any task or plan, always ask yourself: Why is this important to me?
Sometimes, we do things purely to please other people or simply out of habit. By understanding the nature of your actions, you align them with your core values and long-term goals.
Thanks for reading! I hope you found this edition of Wise & Wealthy useful.
All the best,
Darius
Order The Stoic Path to Wealth
My new book, The Stoic Path to Wealth (Portfolio / Penguin), is out now.
Learn more here: stoicpathtowealth.com