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One of the posters in the "millionaire next door" thread here suggested using a calculation of your total gross income * %20 to determine if you're an under accumulator of wealth. This is an excellent idea!

I think everyone on this board should do this calculation (or the other one: Salary / 10 * Age -- this number should be your net worth)

Are you saving %20 of your gross income? Could credit card debt be part of the problem?

One of the problems with credit cards is that they give you no yardstick to measure against- except for your credit limit! Talk about a bad goal!

If you're making savings/investment goals and using credit cards, you don't have a problem. But if you are not achieving the net worth calculated by one of the two formulas above, you do have a problem. (And for the record, I am an "under acumulator of wealth" by those yardsticks, but I intend to fix that!)

So, do those calculations and see if you in good shape or not-- you might find that while you thought you were saving a lot, you are really selling yourself short. Its a long way to a $million. $10,000 in a stock portfolio seems like a lot, but theres a lot of $10,000 chunks between there and $1,000,000.

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