How to know if you’re already Rich

How to know if you’re already Rich

Have you ever wondered, at your current stage of your life, how rich you are? Some people may rebuke the very idea that they are rich at certain level but the truth is yes, we are all rich at some level.

You see friends, many of us associate being rich as a matter of having huge chunk of money in the bank, or having a big house, a nice car, having lots of properties and many other material things that can be associated with wealth.

While there is some truth in it, the amount of material possessions that we have doesn’t necessarily equate to the level of richness of a person. Being rich is never just measured by amount but it’s actually measured in time.

Will you believe me that a janitor who has a savings of ₱150,000 is richer than a banker who’s has a savings of ₱500,000?

You might tell me I’m joking but i’m not? How can somebody with only ₱150,000 be richer than someone who has ₱500,000?

To answer that, let us get deeper to their personal expenses. Assuming that tomorrow, Mr. Banker and Mr. Janitor were fired from their jobs and they both don’t have any other source of income.

Mr. Janitor owns a small house which he has already paid in full. And due to his inexpensive lifestyle, every month he spend a total ₱15,000 only. On the other hand, Mr. Banker has a condo, a nice car, a club membership, and a couple more that he posses which he is paying monthly amortisation. So every month, Mr. Banker has an expense of ₱100,000. Now let me ask you the question again, who is richer? Is it Mr. Banker or Mr. Janitor?

You see friends, Mr. Janitor can survive 10 months without working by having only ₱150,000 because he spends ₱15,000 per month only while Mr. Banker can only survive 5 months by having ₱500,000 because he spends ₱100,000 monthly. So technically, Mr. Janitor is richer by 3 months than Mr. Banker.

Being rich is measured in time. How much time can we survive without working considering the resources we have now?

If you just found out that if you have a passive income, meaning your investments, are making more money monthly than your monthly expenses, then that means you are truly rich. You no longer have to work to survive because your monthly passive income can cover your expenses forever even without you working.



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