how wealthy are you?

leadsupplier

leadsupplier

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Im reading the millionaire next door, and also waiting at the dallas airport bc my flight is delayed so I figure this is relevant to everyones interests.

So in the book they calculate wealth or the amount you should have as:

Your age multiplied by your pre tax income divided by 10

So to be at that number is great, over the number is amazing, and under u have some work to do.

Im under, my net worth should be 146k, but I've only been earning for under a year.

So what about the rest of wf? I bet you'll be surprised once u calculate it.
 


wealthy is losing your $50,000 audemars piquet watch at the restaurant down the street from your 3rd house in the virgin islands and not giving a fuck. if you're still working you're not wealthy.
 
leadsupplier said:
So to be at that number is great, over the number is amazing, and under u have some work to do.
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What number? I am kind of confused but I want to do it, can you reiterate for the :rasta:

Edit: Oh I think I get it, we should have that number from that calculation as total net worth (investments, cash, real estate, etc..) ?

jenzkc said:
if you're still working you're not wealthy.
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I think this is a huge misconception
 
Sorry brah..

So its like this

Im 23 make 55k pre tax

(23 x 55,000)/10 = 126500

So technically to be wealthy I should have a net worth of 126k right now
 
Falian said:
If you're over 10, no matter how much you make, the calculation tells you to make more to be wealthy.
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Yea but not really. It assumes you invest on appreciating assets. Also you could make 400k one year and 100k the next. So I see your point but I still think its a good ballpark of where you should be

Edit: the whole point of the book isn't to just increase your income but decrease your spending and invest wisely
 
Wealthy is not just about having money. If you make $150k a year but are working 120 hour weeks hating life, you may as well not be making that money because you cannot even enjoy it, let alone taking years off your life from crazy hours and likely unhealthly lifestyle, which are factors that cant even be measured.

Point being, everything is relative - there is no equation to life, it is what you make of it :)
 
what do they consider as part of wealth some calculate income as part of your wealth... are you talking cash, and property that's paid off... ?
 
secretagentdad said:
:nopenope::nopenope::nopenope::nopenope:

worthless book.
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This, as I explain below...

leadsupplier said:
Sorry brah..

So its like this

Im 23 make 55k pre tax

(23 x 55,000)/10 = 126500

So technically to be wealthy I should have a net worth of 126k right now
Click to expand...

The book wasn't designed for your age/income bracket, think of the target audience:

40 year old making $50,000 per year = $200,000 net worth.

By 40, most people have a mortgage and something in their savings/retirement account. Even in middle America where housing is cheap, a 3 bedroom home can easily come in at $150,000+ which will make up a majority of their net worth.

The book was written so any schmuck off the street could read it and say hurrr i'm gonna be a millionaire when I'm 70 durrrrrrrrrrrrr.

You're 23 and making $55,000 per year while millions of your peers fresh out of college are stuck working at starbucks or burger king. Keep working hard and scaling your business and you'll get to the million dollar point sooner or later. For the love of god don't follow the advice in the book and roll around in a 1997 geo metro, get an apartment next to the train tracks, and live off of ramen noodles just for the sake of reaching an insignificant monetary milestone. You only live once and you never know when a giant bus is gonna smash into your face so enjoy it.
 
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Yea income + assets less liabilities.

So basically the value of everything you own, stocks real estate, etc minus what you owe.

The point of wealth is to not have to work. Or if you lost your job, you could still live normally for 10+ years

Which is different than being rich and making 30k per month but spending. 28k on expenses
 
ayzo said:
This, as I explain below...



The book wasn't designed for your age/income bracket, think of the target audience:

40 year old making $50,000 per year = $200,000 net worth.

By 40, most people have a mortgage and something in their savings/retirement account. Even in middle America where housing is cheap, a 3 bedroom home can easily come in at $150,000+ which will make up a majority of their net worth.

The book was written so any schmuck off the street could read it and say hurrr i'm gonna be a millionaire when I'm 70 durrrrrrrrrrrrr.

You're 23 and making $55,000 per year while millions of your peers fresh out of college are stuck working at starbucks or burger king. Keep working hard and scaling your business and you'll get to the million dollar point sooner or later. For the love of god don't follow the advice in the book and roll around in a 1997 geo metro, get an apartment next to the train tracks, and live off of ramen noodles just for the sake of reaching an insignificant monetary milestone. You only live once and you never know when a giant bus is gonna smash into your face so enjoy it.
Click to expand...

+1 for this. Im reading it just bc I hear its a good read. I do plan on living comfortably like you say tho.
 
According to this book, if you stop working you'd be wealthy if you're net worth is (0 * your age) / 10 = 0.

So the lesson from this book is if you want to be wealthy, stop making money!
 
I like Kiyosaki's definition of wealth much better: wealth is measured in time, not money. For example, if you have enough $$$ tucked away to carry you for 3 months without work, you're 3 months wealthy.
 
Wealth is turning your call center + affiliate offer into an eight figure business by year three then realizing you've made enough money to not give a fuck.

Not driving used American cars until you can afford to stop working because your grandpa's generation did it.

The rules of the game have changed... Unless you want to sell books to people who want to hear what they hope is true.

The truth is the millionaire next door is probably smarter and harder working than penny pinchers.

My great uncle was a "Millionaire next door" type of millionaire. Once the money went from his kids to their kids there was nothing left.

I have the ability to make what he made in a lifetime in two years, adjusted for inflation. That's the difference. Technology has been a game changer.
 
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its an unreal calculation.

What if you have to care for 6 relatives? How does the calculation work now? It is an irrelevant calculation.

When I was 23 I had no idea what life had in store for me, and I had no idea how much money I would have to give away to support others every month.
 
Millionaire Next Door, while not a worthless book in general, is a completely worthless book for people like us.

If you're a corporate 9-5er who wants the 2 cars, 1.2 kids, wife, mortgage, dog, riding lawnmower, and a comfortable life and retire well off enough to play golf 3x a week, it's great.

If you aspire to be bigger than that, then go burn that book immediately and get your ass back to work.
 
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