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http://biz.yahoo.com/weekend/millionretire_1.html

On topic article today....

the breakthrough occurs at around two times income. Let's say your salary has hit that $80,000, you have amassed $160,000 in savings, you are socking away 12% of your pretax income each month and your investments earn 6% a year.
...
Over the next 12 months, your $160,000 portfolio would balloon to $179,518, or $19,518 more. Your monthly savings would account for $9,600 of that growth. But the other $9,918 would come from investment gains. In other words, you've got to the crossover point,
...
as things really start to snowball. Using the assumptions above, your portfolio would soar from $160,000 to more than $418,000 a decade later. True, part of this gain would be lost to inflation. But inflation should also drive up your salary, allowing you to squirrel away more money.

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The crossover point (1.5 to 2X annual income) is when I really started to track my networth, as I realized that I was gaining much more per year than I was saving. Especially since this crossover happened in 2003 as the market was starting the great bull run (S&P500 from 800 to over 1500 today) in 4 years. That along with my home appreciating nicely as well.

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whyohwhyoh

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