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Retirement Discussions / FIRE Wannabees
|Subject: Re: FIRE checker for Fools||Date: 8/21/2003 2:46 PM|
|Author: justpatrick||Number: 508 of 5086|
One thing is that I think you should look at not only net worth to income, but also net worth to expenses. The first number does give you an idea of how good you are at saving relative to your income (minus gifts and such). The second tells you how far from retirement you are...which is a key difference.
Also, be careful how you measure your "success." If you are making $150k (married, two incomes) and one of you stops working. Now your income has dropped dramatically, but your net worth remains the same. This metric of net worth to net income goes way up, but you are no closer to retiring than you were before.
The other thing is that I feel strongly that working on good offense (higher income) can have a much more dramatic effect than just cutting costs alone.
How to get there early and how to build from there is probably worthy of another post/thread.
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