Good thread! And while all these comments are mostly true I think people tend to overthink net worth and what it means to be rich. My definition would be you are rich if you have enough net worth to support your current lifestyle for an extended period of time without having to finance any kind of debt. In addition you need to be able to weather a calamitous event like a 40-50% drop in your net worth without having it cramp said lifestyle too much.

People are generally horrible at calculating their own net worth. They tend to over inflate by omitting debts they don't want to acknowledge- mortgages, credit cards, future college tuition payments of offspring, inevitable health care costs etc. I would also add that most people never factor in inflation although the last couple of years has at least helped to educate people about this. When you think about how much you are worth you better factor these things in because they undoubtedly a huge part of the equation.

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