What it Means to be Rich

In my five year study of the daily habits of the rich and poor (http://richhabits.net/rich-habits-study-background-on-methodology/) I defined rich to mean those individuals who passed a two-part test:

  1. Gross Income of $160,000 or more and
  2. Net Liquid Assets of $3,200,000 or more

In reality, being rich is much more complicated. There are many variables that can make one person rich and another person not rich. It’s not a simple financial test as much as it is a lifestyle test. As a result, being rich is very much a subjective matter. Nonetheless, I thought I’d provide some clarity and share with you some of the variables I uncovered from my research that definitively make you rich. If you meet all of these 12 tests, then you are a rich person:

Test #1: You no longer have to work in order to fund your lifestyle. If you work it is because you want to work not because you need to work.

Test #2: The unearned income you generate exceeds your living expenses.

Test #3: You can afford to take the number of vacations you want to take during the year, irrespective of what that number is.

Test #4: Your can afford any and all healthcare or medical costs that may arise for you, your spouse or any family members, including the cost of long-term care inside or outside your home.

Test #5: You can afford to purchase new cars for you and your family without relying on bank loans.

Test #6: Even if you got divorced, it would not require that you or your family alter their lifestyle.

test #7: If you wanted to, you could afford to pay college costs for all of your children or grandchildren without it affecting your lifestyle.

Test #8: You own your home and/or your vacation home outright. You have no mortgages for either.

Test #9: You can afford to meet large, unforeseen expenses, without it affecting your lifestyle.

Test #10: You have no financial constraints on your activities. You can do what you please, when you please, without considering the cost.

Test #11: You have zero debt.

Test #12: You no longer require life insurance, health insurance or long-term care insurance. You can self-fund the costs associated with these types of insurance. If you carry insurance it is either for estate tax planning purposes or to protect the assets you’ve accumulated.


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Thomas C. Corley About Thomas C. Corley

Tom Corley understands the difference between being rich and poor: at age nine, his family went from being multi-millionaires to broke in just one night, due to a catastrophic fire that destroyed his Dad's thriving business. For fourteen years they struggled with poverty. There were eleven in Tom's family, and they lived in constant fear of losing their home.

Driven by the desire to unlock the secrets to success and failure, Tom spent five years studying the daily activities of 233 rich people and 128 poor people. He discovered there was an immense difference between the habits of the rich and the poor. During his research he identified over 300 daily activities that separated the “haves” from the “have nots.” Tom decided to write a book to share what he learned. That book, Rich Habits: The Daily Success Habits of Wealthy Individuals (1st Edition), went on to become an Amazon Bestseller in the United States forty times over a three year period. To give you some perspective, in order to be a true Amazon Bestseller in the United States, where you actually receive a specific Bestseller designation from Amazon, you need to be in the top 100 of all books sold by Amazon in the United States in a given day. Rich Habits did that for nearly thirty straight days, rising as high as #7, eclipsing such Bestselling authors such as Stephen Covey, Robert Kiyosaki and J.K. Rowlings. Imagine that - an unknown, first-time, self-published author selling more books than J.K. Rowlings!

Tom now travels the world, sharing his Rich Habits and motivating audiences at industry conferences, corporate events, universities, multi-level marketing group events, and global sales organizations’ presentations and finance conferences. He has even spoken on the same stage with famous entrepreneurs and personal development experts, such as Sir Richard Branson, Robin Sharma, Dr. Daniel Amen, and many others.

Tom has shared his insights on various national and international network, cable, and Internet television programs such as CBS Evening News, NBC News, Yahoo Financially Fit, Money.com, India TV, News.com Australia, and a host of others. He has been interviewed on many prestigious nationally syndicated radio shows, including the Dave Ramsey Show, Marketplace Money, and WABC.

Tom has been featured in numerous print magazines—such as Money magazine, Inc. Magazine, SUCCESS Magazine, Entrepreneur magazine, Fast Company magazine, More magazine, Epoca Magazine (Brazil’s largest weekly) and Kiplinger’s Personal Finance magazine—and various online publications, including USA Today, CNN, MSN Money, SUCCESS.com, Inc.com, and the Huffington Post. Tom is a frequent contributor to Business Insider, Credit.com, Bankrate.com and a few other media outlets.

National publicity has garnered international media attention for Tom and his Rich Habits research spanning 23 countries. Broadcast media, online publications, and television throughout Asia, the South Pacific, Europe, the United Kingdom, and Central and South America have shared his powerful message.

In an effort to help parents, grandparents, teachers and adults become success mentors to the younger generation, Tom released his second book, Rich Kids: How to Raise Our Children to be Happy and Successful in Life in 2014. This book was the self-help category winner of the 2015 New York Book Festival and Runner-up in the prestigious 2015 Writer’s Digest Self-Published Book Awards Contest. In 2016 Tom released his third book, Change Your Habits, Change Your Life. This book provides the latest science on habit change as well as more of Tom's unique research on the specific habits that helped transform 177 ordinary individuals into self-made millionaires.

Besides being an author, Tom is also a CPA, CFP, and hold a master’s degree in taxation. As president of Cerefice and Company, CPAs, Tom heads one of the premier financial firms in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
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