What exactly is a paper millionaire? Does that mean my parents are millionaires?

A little description about how my family lives so it gives you a better understanding. Our family home is worth about 1.8million (USD) and my family owns an Audi, that we bought for 80k. My father is in the oil business, and his income is around 500k a year including prices food etc. He once told me he is not exactly a millionaire but is a paper millionaire


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Most Helpful Guy

  • Paper millionaires are a dime a dozen - Most home owners have at least a quarter of a million straight away.

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What Guys Said 3

  • It's when your assets are worth over 1 million, but it isn't cash. At least, that's how I understand it. The house you live in is worth 1.8 million, but that's simplified into the title deeds of the house saying who owns it. It's just a piece of paper worth 1.8 million.

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  • Yes: the house alone is worth more $1.8 million and with an income of $500k it's safe to say they probablyhave more than $1 million in savings as well.

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  • all his money is on paper. meaning bugger all cash in his wallet, but if he needs somthing he can just ring the bank and buy it.

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What Girls Said 2

  • From what I hear, most of their wealth is in Assets owned by banks since they took loans for it. They are left with little cashflow. On the balancesheet and can be a financial estimation/forecast rather than having the few millions store in bank.

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  • Never heard of a paper millionaire

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    • Neither really, that's why I'm confused. Looked it up though on google and sort of understand it.

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