What is Rich? Study Finds the Truth

For defining the wealthy lot, each one of us has a distinct definition. While some might consider one having $1 million to be rich, others point out that those have $100 million are rich. However all these might be a layman’s definition of wealthy people, considering what a survey from UBS Financial Services has to say on the matter. 

According to a survey conducted by UBS, “wealthy” can be considered a term for those who have at least fortunes worth $5 million with $1 million of the amount being in hard cash. UBS Investor Watch conducted this study among a group of 4,450 investors. All these investors were asked a common question and were judged on basis of the answer provided by them. About 60 percent of the investors who had fortunes worth $5 million considered themselves wealthy and only 28 percent of those having fortunes varying between $1 and $5 million pointed out that they consider themselves to be well off.

Around 50 percent of the respondents who were interviewed pointed out that one could consider himself or herself wealthy only if they have no financial constraints and could plan their lives with extreme ease.

10 percent of the respondents in the survey came out with an amusing answer as they considered oneself rich only if one does not have to work again after amassing such chunks of wealth.   Almost all of the respondents who were interviewed agreed on the point that one cannot be considered wealthy only if he or she has a certain amount of fixed asset. Being rich in the true sense means that one should be having sufficient cash in hand to meet any kind of expenses that arise at times.

Another interesting point that came to notice during the survey was that investors had kept 23 percent of their assets in cash to deal with any kind of eventuality that might arise. It needs to me mentioned here that during the phase of recession that swept across Europe some years back, many rich people had to face difficult times as they did not have sufficient cash in hand.

Two Thirds of the investors interviewed pointed out that they had kept the required cash in hand to deal with any kind of emergency and that they could risk with money in equity as they had kept some for hard times.