It’s all about your “coverage ratio”. About 25 years ago, there was an article in Fortune magazine on the BRK annual meeting in Omaha. The reporter observed the simple, unfashionable attire of many attendees and remarked, “This is the World’s largest gathering of multi-millionaires living on $30,000/year.”
When I was a millionaire I made the mistake of feeling financially secure. Whoever wrote that headline is financially clueless. I did not bother reading the article.
“Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Spanish saying: “The difference between rich and poor is one peso. The rich have one peso more than they need, the poor, one less.”
Back in the day two fellows marvel at American technology,
“¡Los americanos spent eight billion dollars to send a man to the moon!”
"¿How much is that in pesos?
“¡All of them, all of them!”
I think that it’s a bit more complicated.
I was born in a slum. We didn’t even have a flushing toilet, just an earthen closet down the yard, great on a hot summer’s day
Most people who look at me now would think that I have ‘made it’ and will never have any financial problems again, which is probably true. However, I always have that nagging fear in the back of my mind that I somehow might lose it all and end up back in that slum. Totally irrational I know. I’ve noticed this with some of my richer clients, especially the ones who have clawed their way up from the bottom:
But contentment and misery don’t map perfectly onto wealth and poverty. The multimillionaires in Hannon’s article are found to harbor intense feelings of guilt, self-doubt, and above all, anxiety that their savings will be stolen or squandered due to miscalculations or misfortunes. Are the bourgeoisie, too, held hostage by capitalism?
First of all, congratulations for working your way out of a slum. You are up there with the likes of Andrew Carnegie who might not have been born in a slum but certainly was not born to wealth. I love rags to riches stories.
The above that does not change my opinion that one should always be cautious because no one is looking out for number ONE but number ONE.
The CNBC headline says,
Even millionaires are feeling financially insecure, report finds
The Jacobin report is about a bunch of millionaire neurotics. Not the same thing.