The difference between a million and a billion?
About a billion.
this post was submitted on 17 Sep 2024
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If you take a million dollars away from someone with a million dollars, they would be broke. If you took a million dollars away from a billionaire, they would basically still be a billionaire.
But not part of the 3 commas club anymore.
Just put it all in mutual funds, and you'd earn $80 million a year in growth.
I just spent a few days visiting the French Riviera during my vacation.
Yeah we do ~~overestimate~~ underestimate the income of the top 1%. The amount of absurd wealth these people have is gross.
Edit: thank you stranger for the word
I think you meant "underestimate."
Yes. Yes I did.
Thank you for noticing
Visited Seoul with my friend who's family is deeply tied to Samsung.
What an eye opener.
I learned a perspective trick whenever I ridicule a price I see for something like quality clothes and such. For every additional digit in your income, remove a digit from the cost of something. Most of us are at 5 digits, and we prefer sales because 100 dollars for a pair of jeans is way too much while 10 dollars isn't. To a 6 digit earner, the base price of affordable.
Now think of someone who earns 7 digits as year, to them a 1000 dollar piece of clothing is reasonable. To the 8 digit, a 10000 dollar piece of clothing is reasonable. If you make a billion dollars a year? A pair of jeans worth 1 million dollars is reasonable.
It's just a thought experiment but it helps me better understand why gacha whales exist, why people buy million dollar cars, etc.. It's also just so far removed from the rest of society that it'd be laughable if it wasn't so sad.
Their money makes money. If you have enough of a surplus in your income to save money or invest then you are accumulating money faster than the rest of us, and we will likely never catch up.
I guess it depends on how they quantify it.
Are they talking about a $ value cutoff or a % of wealth cut off?
Top 1% of $ varies by state:
https://www.fox29.com/news/salary-needed-top-1-percent-all-50-us-states
So, for here, it's $707,296.
Lowest is West Virginia at $435,302.
Or to quantify it further. If someone has $20m, but no job. Is this person in the top 1%? I think so, but it is conceivable that this person lives very frugally in order to pass that on to his children or something.
Also, I think people like to say the top 1%, when they really mean the top 0.1%. I believe the top 1% income or savings, however it is defined, is a lot lower than most think. I believe when most people refer to this colloquially, they really mean billionaires.
If you have $20m you are EASILY making 500k/year in interest/dividends/investment growth. You’d have to try pretty hard to not grow your $20m.
The point was, how is top 1% determined? Some people have high income and spend it all, others are good savers but don't have a high income. Or is it based on net worth? I realize this may sound ridiculous, but as I mentioned, I believe 1% is a lower bar than people think it is.
To me net worth makes the most sense. I do agree 1% isn’t as high as people think. When people talk about the 1% they are probably thinking more about the top 0.1% or even 0.01%.
Looking just at the states with ~330 million people that would be 3.3 million 1%ers. Tons of people who never made huge salaries, but are great at saving and investing will be in that category.
Thank you.