ARE YOU RICH?

The definition of “Rich”: having wealth or great possessions; abundantly supplied with resources, means, or funds.

So what does that exactly mean in 2012?

In a recent survey by Gallup, you’re rich if you have $1 million in assets, or $150k in annual income per person (as answered by people surveyed in the USA). The government usually says it’s a salary of $250k (which only accounts for 1% of Americans).

In China, Super Rich is defined as a person who holds assets worth at least 100 million yuan (USD$15mill). The China Daily estimates there are 8,200 of these individuals currently residing in Shanghai. 75% are business owners and 25% are made up of investors (mostly real estate) But the super-rich club of Shanghai is only the third largest in China though. Beijing holds the pole position, while Shenzhen is second.

Author Nassim Taleb explores the whole concept in his book “Fooled by Randomness” where he uses a great antidote about some fictional (?) neighbours. Was it just plain luck that one guy was richer than the other? We will never know if hard work really pays off.