How much wealth do you have?

If the glove don't fit, you must acquit!

SirTradesaLot

Human

10y

Not enough.

DaCarez

Neanderthal

10y

Wealth as a multiple of disposable income? I consider about half my takehome base disposable (i.e. what goes into savings after an average-slightly frugal month) - annualizing that (so excluding the bonus, which given its variability I just think of as straight flow-through to savings), im about there (also excluding 401k - if I included those would be higher obv).

Honestly, the metric I find more interesting is wealth (ex-401k) as a multiple of run-rate expense base - i.e. if you said "f**k it", how long can you sustain your current lifestyle - for me thats around 3-4 years, which I find comforting. What about you, fellow monkeys?

Going Concern

Human

10y

Best Response

DaCarez:

Wealth as a multiple of disposable income? I consider about half my takehome base disposable (i.e. what goes into savings after an average-slightly frugal month) - annualizing that (so excluding the bonus, which given its variability I just think of as straight flow-through to savings), im about there (also excluding 401k - if I included those would be higher obv).

I think disposable income is typically considered to only have taxes removed, not any other outlays. Sounds like you're looking at it as a multiple of savings, which is disposable income minus other expenses, etc. That's cheating a little bit, in relation to the quoted 6x figure.

DaCarez:

Honestly, the metric I find more interesting is wealth (ex-401k) as a multiple of run-rate expense base - i.e. if you said "f**k it", how long can you sustain your current lifestyle - for me thats around 3-4 years, which I find comforting. What about you, fellow monkeys?

I'm about the same.

Authored by: Certified Asset Management Professional - Vice PresidentCertified Asset Management Pro

CompBanker

The Pro

10y

Praesentium explicabo et quis ut necessitatibus amet. Est nobis voluptate molestias optio et. Quis aut et tempore sit accusantium.

Omnis deleniti et et quisquam. Ea omnis eligendi quo facilis enim. Est dolor maiores adipisci nihil aliquam. Molestias eligendi cupiditate est ex molestias nihil. Unde dolorem adipisci veniam voluptatem. Ea amet hic libero ex placeat.