The rich and poor of this world can be classified into five distinct categories: the starving, the poor, the financially free, the rich, and the very rich.
- The starving
The starving don't have enough income to reliably cover their living costs. They live their life on a 'day by day' basis and hope there will be enough food for the day.
- The poor
The poor have enough income to cover their living costs. However, the bulk of this income is active income (most likely the paychecks of a steady job). People who depend on others also belong to this category.
- The financially free
The financially free have enough passive income to cover their living costs. This means if they don't work at all and live as they please they will still have enough money to maintain their lifestyle.
- The rich
The rich have more passive income than it takes to cover their costs of living. They can start thinking on a communal or global level and create new goals with which to shape the world.
- The very rich
The very rich are so rich that measuring wealth by the amount of money they own is meaningless. Instead, the very rich measure their wealth by the amount of control they can exert on human society as a whole.
It is worth noting that people who earn a lot of money but raise their personal spendings to match their earnings still belong in the 'poor' category.
I hope this categorization provides some perspective into the worlds of the rich and poor, as well as future possibilities.