Many people want to know how much money they have in their family to be considered "rich". This question does not seem to be easy to answer because "rich people" may have different definitions for different people. However, if we look at this from a professional point of view, we may be able to find some clues.
We need to be clear about one concept, and that is financial freedom. Financial freedom refers to a state in which a person no longer needs to rely on work or other external income to maintain a standard of living. In other words, financial freedom means that a person's passive income is enough to cover his living expenses. Based on this definition, we may be able to measure whether a person is "rich" by the measure of financial freedom. In general, the achievement of financial freedom usually requires a certain amount of asset accumulation. Some people believe that a person can only be considered "rich" if his asset size reaches a certain level. However, according to professional investment and financial analysis, we can do some calculations to verify this statement.
In the United States, for example, generally speaking, if a person wants to achieve financial freedom, he usually needs to have enough passive income to cover his daily living expenses. Suppose a person's daily living expenses are $50,000 per year, and his passive income comes mainly from investments with an annualized rate of return of 5%. Then according to the "Wealth Freedom Formula", the size of his assets is about $1 million. In other words, only when a person's assets reach about $1 million can he be considered financially free and a "rich person". Of course, this is just a simplified model. In fact, different people have different standards of living and financial situations, so the standard of achieving financial freedom will also be different. Some people may be able to achieve financial freedom with a lower asset size, while others may need a higher asset size to achieve this. But what is certain is that a person can only be considered "rich" if he has achieved financial freedom.
Achieving financial freedom is not just a matter of numbers, but a manifestation of comprehensive capabilities. In addition to asset accumulation, investment and financial management ability, financial planning ability, risk control ability, etc. are all important factors to achieve financial freedom. Therefore, "rich people" is not so much a static criterion as a dynamic process. So, when someone asks how much savings a family needs to be considered "rich", we may give a rough number, but more importantly, tell him that achieving financial freedom is not just a matter of numbers, but a manifestation of comprehensive strength. Therefore, when your deposit is just a number, you may still be some distance away from the "rich man", but when you learn how to manage your money and plan your finances, maybe you will find that the "rich man" is not so far away.