Ryan S. Dancey
2 min readNov 1, 2021

--

Asking people who are not wealthy how much money they would require to have to be wealthy is asking a nun for advice on how to pleasure your partner in bed. It's all theory, no practice.

I have observed several friends make the transition from upper middle class to wealth. It's a continuum not a single point in economic space. The continuum is really defined by "loss of risk".

As you accumulate weath your downside risk starts to evaporate. At a certain point you own your home rather than having a mortgage (or you have a mortgage for tax purposes but you have no concerns you could pay it off with liquid assets if you wished). You can send your children to any university they get accepted to and don't have to worry about how to pay for it. You don't fix cars, you buy new ones (and pay cash). You have umbrella insurance coverage so the mishaps and misadventures of life can't rob you of your weath. You have health insurance with unlimited coverage so illness will not bankrupt you.

That happens in the low millions of dollars.

As you get into tens of millions of dollars your lifestyle expands. You have multiple homes. You have multiple vehicles (land, air and sea). You have a staff who reduces your need to pay attention to the details of life. Someone cooks for you, cleans for you, maintains your homes, and watches your children.

Beyond tens of millions of dollars of wealth it's all just toys, posturing, and YOLO bets on startups and investments; at the extreme edge of that range is personal space programs and trying to make computer systems that will allow you to upload your brain and live forever.

--

--

No responses yet