How Do I Know if I’m a Millionaire?
Let’s first define the term Millionaire. The term millionaire defines someone who has a net worth of at least one million dollars. To understand this further, one needs to know how to calculate personal net worth. This is a simple calculation. Add up everything you owe (liabilities) and subtract it from the value of everything you own (assets) and you have your personal net worth.
If this number is $1 Million, then some would say you are a Millionaire.
Let’s say your net worth is $1 Million dollars based on the following. You own a home, for example, that would sell today for $4 Million and you only owe $3 Million on the mortgage. After it sells, you would have $1 Million left over. Many wouldn’t consider this being a true millionaire because you can’t get to the money without either selling your house, or borrowing against it.
You could have a net worth of $1 Million dollars and hardly have any cash in the bank. This is not what is meant by being a millionaire. Many also define being a millionaire as someone who is a “cash millionaire.”
A cash millionaire, after all debts and assets are calculated, has at least $1 Million in CASH in the bank that they could get to today. If you’re a cash millionaire, then you know that you’re really a millionaire.
Now, get out there, kill it, and drag it home.