Being a milionaire is not what Its cracked up to be.....
Discussion
First off this is not meant to be a willy waving thread as I suspect I am not unique, I just wanted to get opinions from the masses on PH.
Over the last few weeks I have been assessing the state of my finances and I have just found out that if I was to pay off any debt I currently owe( I have no personal loans , credit card debt and just a couple of small mortgages) I now have mainly assets and cash in excess of a million pounds.
Now I am what I would consider to be a reasonably average guy. I am a wage slave like most, I have seen my home of 14 years increase in value substantially and have a few other assets dotted about the place but nothing massive, nothing unusual here
So as I am now technically a millionaire why don’t I feel rich? I worry how I am going to pay the kids school fees, can we afford a foreign holiday this year plus I am currently feeling guilty because I spent a couple of hundred quid on clothes and shoes at the factory outlet stores in Ashford this weekend.
Now I know this is a first world problem particularly in the south east so I am expecting no sympathy. So my question is, "At what point do you start to feel well off, £2 million, £3 million...?" And is it about cash or assets?
Over the last few weeks I have been assessing the state of my finances and I have just found out that if I was to pay off any debt I currently owe( I have no personal loans , credit card debt and just a couple of small mortgages) I now have mainly assets and cash in excess of a million pounds.
Now I am what I would consider to be a reasonably average guy. I am a wage slave like most, I have seen my home of 14 years increase in value substantially and have a few other assets dotted about the place but nothing massive, nothing unusual here
So as I am now technically a millionaire why don’t I feel rich? I worry how I am going to pay the kids school fees, can we afford a foreign holiday this year plus I am currently feeling guilty because I spent a couple of hundred quid on clothes and shoes at the factory outlet stores in Ashford this weekend.
Now I know this is a first world problem particularly in the south east so I am expecting no sympathy. So my question is, "At what point do you start to feel well off, £2 million, £3 million...?" And is it about cash or assets?
If you sell your house and buy a comparable place in another part of the country for less than half you'd release a huge amount of equity and feel a lot better off.
Your situation is like many in the South East.
Do you have to live there? could you be happy elsewhere and work at a comparable level.
If so then worth considering.
Your situation is like many in the South East.
Do you have to live there? could you be happy elsewhere and work at a comparable level.
If so then worth considering.
I would say that quite a lot of people are in that situation -- bought a house in the South-East 15-20 years ago and suddenly it is worth close to / over a million pounds. That doesn't really make you feel rich, unless you sell up and buy something not in the south-east leaving you with cash. And even then it is a dwindling resource that you should be concerned about spending.
I would personally say that 'feeling rich' is a constant sustainable large income where you can do things without really thinking about the money.
I would personally say that 'feeling rich' is a constant sustainable large income where you can do things without really thinking about the money.
Thankyou4calling said:
Your situation is like many in the South East.
Exactly. London house price inflation has made loads of us millionaires. Unfortunately, I want to keep living in my house. My financial advisor calls it latent wealth. I call it fur coat and no knickers. Got a million pound house and no food in the fridge!
Depends which metric you use. If using "Net Worth" as you have, then yes, you are a millionaire. But it's a meaningless term if the house you live in has a theoretical market value of £1m but you have no cash savings and only a £20k a year income.
A better metric to use is the "net financial assets measurement"; equity in one's principal residence is excluded, as are lifestyle assets, such as the car and furniture. That's a better indication as it demonstrates your theoretical disposable income. In which case, I'm afraid you aren't a millionaire. Means you can stop worrying that you aren't living the lifestyle though
A better metric to use is the "net financial assets measurement"; equity in one's principal residence is excluded, as are lifestyle assets, such as the car and furniture. That's a better indication as it demonstrates your theoretical disposable income. In which case, I'm afraid you aren't a millionaire. Means you can stop worrying that you aren't living the lifestyle though
I think it all depends on location.
A million in London wont get you far, but up here in sunny Scotland it will
I personally think its about cutting your x's out down.
I'd love to have no bills but with mortgages, rates, kids, wife, cars, fuel, food, insurances, nursery fees ... its not long on eating up the in's.
Assets are all well & good but as others have said you cant spend a house.
2 Mill & no x's would see me out
A million in London wont get you far, but up here in sunny Scotland it will
I personally think its about cutting your x's out down.
I'd love to have no bills but with mortgages, rates, kids, wife, cars, fuel, food, insurances, nursery fees ... its not long on eating up the in's.
Assets are all well & good but as others have said you cant spend a house.
2 Mill & no x's would see me out
Mr Roper said:
AshBurrows said:
Deffo a brag thread anyway.
Definitely this.I was just trying to point out luck has put me in this situation as it has done for millions in the south east
My personal definition of a millionaire is having a million cash, under the bed or in the bank. Something I could go out and splurge immediately (or short notice if in ISA's etc).
Having a million in assets, IMO, is not the same thing.
However, I am still along way from either - so what do I know!
Having a million in assets, IMO, is not the same thing.
However, I am still along way from either - so what do I know!
bloomen said:
You're a paper millionaire. Most of it isn't accessible and never will be unless you take to sleeping the woods.
Very true.So how many on here have found themselves in a similiar position and have decided to sell up , moved up north or are now living on a beach somewhere in the Pacific?
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