When do you decide you are a millionaire?

[Riddys]

With many of my online ventures now flourishing and as I am now into my third year as a full-time publisher / affiliate, I was wondering how the super affiliates among us calculated they were worth a million pounds, which is my initial target.
Did you work out your worth by multiplying your net profit by a set number? Did you add up all your assets less liabilities or was it when you actually had a million pounds in the bank?
I would be delighted to learn your formula for net worth, just to see how far I have to go.
thanks
Paul

[ian-d]

As an individual money in the bank i'd say. Its too easy to claim millionairre status from a business when too much enthasis is put on turnover etc, not taking into account the lovely tax and vat man! I don't go along with the 'assets' or 'company value' side of things, as something is only worth as much as someone is willing to pay.

Fair play to you though if you're on your way

[jonsp]

I was reading the other day that banks judge how rich someone is by adding up the value of what they own aside from their main residence and pension fund. Doesn't have to be cash in the bank, it could be holiday homes, share prortfolios, even classic cars or race horses basically anything that if were all sold could raise £1m while still leaving house and pension. Although £1m isn't rich any more - banks classify someone as high net worth if the assets above are worth at least £5m or very high net worth for over £20m.

On the other side of the coin there's probably a lot of middle aged middle class couples living in nice houses in some of the better parts of London who thanks to the rising property market have houses worth at least £1m more than their mortgage. In theory millionaires but in practice obviously not.

[John]

when you stop counting

[Ditzy]

My net worth is approximately three paper clips and a coffee mug

Best of luck to you on reaching a million though

[Michael_Anthony]

When your personal balance sheet shows it. The total value of your personal assets less your total personal liabilities.

To value a business in the real world, work out how much it would be worth without you in it - if the answer is not very much, then your goal should be to change that.

And when you stop counting is when it is likely to go down.

[shyguy0507]

I think i'm worth about 10p :eek:

[ian-d]

I can't see your home as being included in overall worth, whilst it is in terms of if you sold up and lived on the streets, fair enough, but if your house has gone up 500% in the area you live, then all other others are likely to have gone up a similar amount, therefore leaving you in the same position or moving to another area.

[hpops]

Your home is nearly always your primary asset and the proportion of equity you own is directly attributable to your net worth.

If your business is worth x and your home is worth y and other assets are worth z.

If X + y + z = more than a million - you're a millionaire

[stu foster]

i think being a millionaire is not quite the mile stone it used to be. Now billionaires, that's where we should all be aiming

[hpops]

There was a survey recently which estimated that the personal wealth required to live a millionaire lifestyle was 2.8 million - sounds like a good target to me!