You need to be careful comparing standard of living with wealth .
What is considered a good standard for one person is not the same for another . I would suggest that a roof over your head ( yours ) a full stomach and good health would be the minimum . After that , it's open to interpretation . E.g. A new Toyota or a new Mercedes ?
Wealth buys you choice which in my opinion is the ultimate luxury . Being able to retire early . Being able to choose your job etc . That is the real benefit of wealth .
Earning a bit more money each year to spend on stuff will not make you wealthy . If you continually reinvested the dividends , then yes .
I'm sure there are people that rent all their lives and invest well . But they would be very few and far between . However , for the rest of us , buying a house or two and paying them off will ultimately buy us choice , and that is the ultimate goal .
The example of the little old lady living in the two million dollar house . At least she has choice . Whether she uses it is up to her .
