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Re: Money we've made versus money we have kept
Old 07-12-2006, 02:06 PM   #21
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Re: Money we've made versus money we have kept

Unfortunately, my percentage of saved/earned isn't that great...roughly 36%, but then again I paid a great deal of money in taxes being a single guy without a mortgage. If the stockmarket starts to perform, then I'll see that percentage creep up. Likewise, after my fiance and I get married and buy a house, the percentage should rise.
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Re: Money we've made versus money we have kept
Old 07-12-2006, 04:20 PM   #22
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Re: Money we've made versus money we have kept

Quote:
Originally Posted by NinjaPigeon
The problem is it's a linear equation, and earnings are a quadratic.
Exactly! I even tried to get stanly's email address to point this out!
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Re: Money we've made versus money we have kept
Old 07-13-2006, 04:02 PM   #23
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Re: Money we've made versus money we have kept

DW and I have a networth that is 1.16x our lifetime accumulated "salaries." Of course the "salaries" don't include 401k contributions (either ours or employers'), pension cash-out, or investment earnings. Take out the 401k and pension effects and the ratio drops to 0.77x. DW and I are in our mid-40's.

I guess this is what happens when you live below your means. The means eventually accumulate.
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Re: Money we've made versus money we have kept
Old 07-13-2006, 05:37 PM   #24
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Re: Money we've made versus money we have kept

Isnt it more about when you start savings more than lbyms. The rich Barber discusses this using twins as an example. The one that starts investing sooner ends up with a much larger account then the one that starts later and invests more.
Using the rule of 72 and getting 7 % your money would double every ten yrs or so. So a dollar saved would then be 8 dollars in 30 yrs. Get 10% and now your talking about 16 bucks.
A penny saved.....
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Re: Money we've made versus money we have kept
Old 07-13-2006, 06:25 PM   #25
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Re: Money we've made versus money we have kept

Don't even want to think about, because after my divorce I was left with virtually nothing. Have built up a pretty decent portfolio since (about 12 years).
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Re: Money we've made versus money we have kept
Old 07-13-2006, 07:16 PM   #26
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Re: Money we've made versus money we have kept

My number is 0.6...

It is somewhat misleading, in that my current "salary" is 2x what is was during most of my "career".

On MasterBlaster's scale, I'm 52, 4.375 and 1.1875 (all mortgage).
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Re: Money we've made versus money we have kept
Old 07-14-2006, 10:33 AM   #27
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Re: Money we've made versus money we have kept

Quote:
Originally Posted by spideyrdpd
Isnt it more about when you start savings more than lbyms.
True, but you don't start to save until and unless you spend less than you make. The earlier you come to that realization, the longer the rule of 72 applies to your investments.
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Re: Money we've made versus money we have kept
Old 07-14-2006, 10:44 AM   #28
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Re: Money we've made versus money we have kept

Quote:
Originally Posted by scrinch
DW and I have a networth that is 1.16x our lifetime accumulated "salaries."* Of course the "salaries" don't include 401k contributions (either ours or employers'), pension cash-out, or investment earnings.* Take out the 401k and pension effects and the ratio drops to 0.77x.
That's a very good point. I have made around $1.1 mil (gross) so far and my net worth is $750-770K, which puts me at around 0.70. However, if you subtract 401k contributions and income taxes, I will be over 1.00.
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