The Motley Fool Discussion Boards
Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE checker for Fools||Date: 8/13/2003 7:18 PM|
|Author: JAFO31||Number: 356 of 5089|
matt5: "After reading the Millionaire Next Door three times ( I currently own 5 copies and give them as gifts to friends and family when they graduate from high school/college) it had a profound impact on my life."
While I liked TMND, I found much of it to be descriptive rather than prescriptive.
"At what age in life did you (and your spouse) achieve a net worth equal to that of your household income?"
Cross the threshhold initially or cross the threshhold and remain above it without exception?
Under the first scenario, I am sure that I did it in my late teens before I started paying for my secondary education. If you mean the latter, than I am sure that it is at least a decade later.
"Now, what's amazing about this formula is that it has ABSOLUTELY NOTHING to do with your income, career or starting net worth. If you make $200,000 per year imagine how long it will take you to build up a net worth equal to that amount."
I disagree (at least WRT to second alternative I posited above). First year private practive doctor with 100k+ in student loans, little in hard assets except clothes and some furniture, and signficant income versus similar person whose parents paid for school, versus similar person who went to lawschool and started receiving large salary much earlier (3 years law school to 4 years for med school + internship + residency).
Here's an even neater concept I love sharing with co-ops/interns/recent grads in our office:
"If you stick 15% of your salary per year under the mattress you will have saved up an ENTIRE YEAR'S salary in 6 years, 8 months. Plus, you will be accustomed to living off 85% of your income (from saving 15% per year). So, in theory, you could quit your job for a year at age 29 (assuming graduating at age 22) and have a BETTER lifestyle" for one or two years "than to which you are accustomed (you'll have saved up 100% of your income, but you're used to living off