The definition of rich? When your passive earn is higher than your burn. #income #rich #investing #interest #wealth

You want to get to a point where you have enough investments that are spinning off capital or growing such that your passive income is greater than your burn. That's the definition of rich. And you can do the math, right? Well, OK, if I'm going to need $120,000 a year, I'll get 6% on that. I need to save two million. All right. This is how many years I have to work. Assume the market will go up 8% a year. You can kind of do the math around how much you should be saving and putting in low cost index funds. So that's the goal. You want to be rich. You want an absence from anxiety. You want to be able to live well without having the obligation if you decide to keep working, which I would suggest anyone does. It's a choice.