Milton
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2007
- Messages
- 2,360
The first step in the Your Money or Your Life plan suggests that you "make peace with your past" by tallying up every cent (okay, dollar) you’ve ever brought in. You are then told to calculate and contrast your net worth. The idea is to ask yourself "where did all that money go?" ... which may lead to you to question your wasteful spending habits.
I went through all of my tax returns from the first one (filed at age 17) to last year's, threw in my estimated pre-tax employment and investment income for 2007, and was very pleased to see that my lifetime gross income from all sources totals only 66% of my current net worth. To me, that's a persuasive demonstration of the power of compounding.
I went through all of my tax returns from the first one (filed at age 17) to last year's, threw in my estimated pre-tax employment and investment income for 2007, and was very pleased to see that my lifetime gross income from all sources totals only 66% of my current net worth. To me, that's a persuasive demonstration of the power of compounding.