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URL:  http://boards.fool.com/stage-1-you-spend-less-than-you-earn-and-save-19460030.aspx

Subject:  Re: FIRE checker for Fools Date:  8/15/2003  12:08 AM
Author:  FoolStreet Number:  401 of 5069

Stage 1: You spend less than you earn and save the difference. You are accumulating wealth.

Stage 2: Your savings appreciates in value (not including new contributions) an equal or greater amount than what you contribute. i.e. You have a $100,000 port earning 10% and your annual savings are $9000. Your port is appreciating by more than what you are saving, and if you wanted you could stop saving so much.

Stage 3: Your savings appreciate in value an equal or greater amount than your annual income. At this point you are essentially FI without the safety net of 25x spending.



that's so cool, st. thank you for posting. i had never really thought about it that way. i checked my 401k just to see what the heck and sure enough, I'm at Stage 2 (for the 401k only, not the other accounts)

YTD Contributions $8,969.40

YTD Gains/Losses $8,246.45

Of course, there's no way i'm going to extrapolate anything from these #s' this year and last have been just too kooky.





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