Define a millioniare, could use your help | Bloggers Lair | Yakezie Forums

I think the most common way to measure a millionaire is to add up all of their assets, subtract their liabilities, and if the amount is over a million, then they are a millionaire.

MyJourneytoMillions said:

Anyone else find it odd that his first post here is about nothing to do with a blog? 

Thanks for your answers everyone! Also, in reference to MyJourneytoMillions, I do not have my own blog, which is why I said that it was a guest post content piece. I spoke with Crystal from Budgeting in the Fun Stuff and she said this would be a good place to try to get some input. Sorry for any confusion MyJourney!

What Derek is giving you is the net worth definition.  Most millionaires have business or income property.  In other words that have assets that earn them enough to qualify as a millionaire.  I hope this helps.

I am not a millionaire 

I also think it's relative. Here in the UK, for example, we have lots of "millionaires" because of the spiralling property prices between 2000 and 2007. Even with the subsequent recession. I used to work at a newspaper at which the word "millionaire" was on the banned list – because the editor declared that there were so many millionaires, the word held no currency any more!

Very interesting question. What's funny is I would only think of myself as a millionaire if I had a million dollars in investments or liquid. If it's tied up in other types of assets, I wouldn't see myself as a millionaire.

I would look at it as my net worth exceeding $1m.  I know everybody defines net worth differently, so that would of course change for everybody. 

What Derek said, plus add what the typical lifestlye of a millionaire is. Anyways, keep us updated when this infographic is created! I'll be looking forward to it!

If it was my primary residence, then why would I sell it? And if I don't sell it, then how can I call myself a millionaire? If an opportunity presented itself, I couldn't go and sell my primary residence and get the money instantly. Also, it just wouldn't feel like I was a millionaire to me without liquid or stocks/investments. Who knows what a home is actually worth right now until they attempt to sell it? Could be on paper it is a million dollars, but the market might not support it. Ofcourse if I did sell a million dollar house and had that money, then I'd be a millionaire in my eyes:).

Just my own feelings–I know it's the normal way of thinking about it.

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retireby40 said:

Frugal Confessions said:

Very interesting question. What's funny is I would only think of myself as a millionaire if I had a million dollars in investments or liquid. If it's tied up in other types of assets, I wouldn't see myself as a millionaire.

Why not? If you can sell your house and net a million dollars, then you are a millionaire right?. As long as you can convert the assets to cash, I think it should count. Of course, it's difficult to put the right value on a your home so it's probably safer to undervalue it a bit.