Is being a millionaire all it’s cracked up to be in 2021?
Are you familiar with the quiz show “Who Wants to Be a Millionaire”? It was launched in the UK in 1998 and is still around today. The show consists of a series of questions to be answered correctly, to be in with the chance of winning up to €1 million. But why has one million always been the benchmark for being classed as ‘rich’? Why is that the magic number to justify yourself as a wealthy individual?
Why are we striving to be millionaires?
Of course, it’s an aspirational goal. To everyone who has exceeded that magic figure, it would have been a real momentous milestone. Although a figure that would for sure change your life – it’s not always about the figure in your bank account, but instead how comfortably you can live your life – or maybe for some, live a life of luxury.
Being a millionaire isn’t about the figure, it’s the achievement and the lifestyle that comes with reaching it. But do you know what we find funny about the show ‘Who Wants to Be a Millionaire’? It’s the fact that since 1998 they have kept the same prize pot. If they had inflated the prize fund in line with inflation, it would be a little more attractive in today’s world, as we would now be playing for €2,061,689.26.
The reality of owning a million euros is you can now claim yourself as a millionaire (if you wish) and it’s definitely a sign to let you know everyone you’re pretty rich. But just how rich are you in today’s day and age?
Having €1 million in the bank is no mean feat, but it may not make you as filthy rich as you think.
You see, €1,000,000 doesn’t buy what it could have when Who Wants to be a Millionaire? First aired in 1998.
In the past, your €1 million could have bought you 14 average houses, but in 2021, that same amount will only buy you four.
What is the ‘new millionaire’?
The benchmark for being filthy-rich has changed since the 80s and 90s. One million isn’t worth what it used to be.
So what do I need in the bank to be filthy rich? What does the new millionaire look like? Well apparently, in 2021, to make it onto the ‘super-rich’ list, you’ll need to be worth at least €38million. That suddenly puts things into reality, doesn’t it?
Although there may be many millionaires and multi-millionaires, there is also a rise of billionaires, making millionaires seem like a drop in the ocean.
Do you need to be a millionaire to be rich?
Back to what being a millionaire means. A comfortable lifestyle, a healthy pension, not struggling, and being able to pass wealth down as inheritance.
Being rich is being able to spend money without having to rationalise every penny to yourself. It’s having an emergency savings pot built up, it’s financially stable, and it’s having disposable income. Do you need to be a millionaire to be wealthy? No, although it sure wouldn’t hurt!
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Sources:
https://www.bbc.co.uk/news/business-42904875
Lawsons Equity – Independent Financial Advisors Malta
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