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Author: 1putt100 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: Re: FIRE mid-year update 2008 Date: 7/1/2008 10:58 PM
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whyohwhyoh,

I wonder if it would be better to track the ratio of Net Worth / Annual Expenses i.e. NW/AE instead of NW/AI. I believe this gives you a better idea of how close you are to FIRE. Once you reach a ratio of approximately 25-30 of NW/AE you are pretty much there. The logic being that your income could go up a lot in the next few years, but your expenses could hold relatively steady. I don't think you should be punished with your ratio just because you got a raise or a big bonus. Just a thought...

1putt100
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