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Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE checker for Fools||Date: 8/15/2003 1:37 PM|
|Author: Eldrehad||Number: 423 of 5068|
Sounds like a race to the bottom to me, will corporations keep moving shop in search of the cheapest labor at all costs? Its no wonder I can't get any consumer products made by US labor.
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.
First, I really loved the post and thought you hit some very important points.
That said, I'm in my late 30's, have been saving 10% to 15%+ of my pay since I started working at about the age of 20, and have yet to get my net worth up to my annual gross (well, if you count furniture, cars, etc. we're there, I'm just looking at financial investments).
Why? Because my income keeps growing - and took a pretty substantial jump upward when I finished grad school. So when I saved 10% to 15% of my pay when I was an undergrad student, it really doesn't do much (but a whole lot more than nothing! Don't get me wrong) to get our net worth up to our current gross income.
Why do I bring this up? Just to lend some encouragement to some folks who might be saying, "Gee, I'm X years old, and don't have my net worth up to my annual gross income yet" - and feel some sense of dispair. The important thing is that you are living below your means, avoiding debt, and saving and investing.
To look at my net worth and compare it to my annual income would be misleading. Assume two people, each who saves and invests 15% of his income, and they choose the exact same investments with the exact same performance. One person's net income never changes, the other person's grows by 5% per year. Who will take longer to get to that point where net worth = income? Why the person who's salary is growing will be the person who takes longer to get there.
And who would you rather be?
Just a little side note - measures like this are nice, and indeed can be very helpful - but they don't necessarily apply equally well to everyone - so if you don't measure up to somone else's measure, don't fret it. The measure you should be concerned with measuring up to is your own.
And again, just to be clear, I think the post I'm responding to was well-written, contianed great information, and was a pleasure to read - I'm not trying to take exception to anything written, just trying to add just one more perspective.
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