How long does it take the average person to become RICH

I would suggest that if someone is only earning 50k and has done so for a long time then quite possibly they have never been in a position to invest at all.
In this example they may only have a little super and that's it.

 

Yup....only $5,125,000 to go

 

I did

 

Would like to see more info on how this calculation was done and the reasons, assumptions, and conclusions that go with it. Do you have a source?

 

Hi I'm 20 and I work in Maccas and I make 40,000 a year. I'll just grab the calculator from behind the till to work out if I'm doing ok according to this formula.....40,000*20/10=80,000...

Fun formula to start a debate though!

 

I'm about 50% above the formula. And whilst satisfied with that right now fast forward 6-7 years and I'd need to be 400% above the formula to be remotely satisfied.

 

avg person takes too long to get rich - that is why they are avg

whether they are happy or not is another matter entirely

 

not surprising 56-60 years age group has highest % for average person becoming rich.

 

We're practically at 1000% above the expected net worth figure based on the calc.
Not complaining, to get back to average simply means our income will have to increase by an extra 3mil/annum.
Who says they don't want to be average...

 

$1m would be middle class at best.

And yet most people can't save that. Haha

 

I think $2M + owned ppor (with a new roof) is a reasonably FU amount. As per John Goodman in The Gambler. Worth a google.

 

I know the quote well. use it all the time For US conditions ( house prices, car prices, food prices etc) $2 Million is OK.. for AUS its just not enough to say FU . You need 4 or 5 Million to be set for life, here

 

I think $2mill in shares will throw off enough dividends and capital growth so you can be set for life. It just has to not be tied up in the ppor.

 

Depends on where in Aus you want to live, your wants list and whether or not you're a never sell investor. 2m and paid off ppor (with some assets being sold, other assets growing and bringing cf, and debt being paid down over the next 30 odd year) is fine for me. I seriously think some people will never feel they have enough, some people are just investment addicts.

 

Possibly, sure..... But 2 Million at 5 or 6% is 100-120K. And while that's comfy, I would want double that to feel really "set" . And I dont want to be reliant on 5 or 6% yields that may not always be there. So I always assume between zero and 2-3 % when I run my numbers on income from an asset. And that's simply because one day we are going to get a rather big smack from a rather large recession stick, just like everyone does once in a while... giving those with thin , thin numbers a rather large foot to the posterior . I want to have much more income than I really need, so that even if I get half what I think Im going to get, I am still comfy.

And yes, I agree it does depend where you live, how much you want to travel, what sorts of other hobbies or interests you develop if you arent having to be at work every day ...etc.

I want to travel alot, and I dont like flying economy any more But, each person will have their own goals. Their own level where they feel like they are set. For me, its 4-5 Million.

 

I'm a bit sick of travel to be honest. Agree, wouldn't fancy economy for long haul. Looking forward to hiking and kyaking locally and sitting in my garden looking at the view. All of the above make me feel comfy and cost next to zero.

 

And see, this is why the world is so beautiful, because I would enjoy the hiking and the kayaking and the garden view for only a few days, before thoughts turned to being on a plane to somewhere else, enjoying the extra seat width and leg room of business class

 

Each to their own. I'm sick of planes I'm focussing on enjoying the present. Yes, of course I'll fly business when I eventually get bored and need something else. I can't stand economy for more than a couple of hours. Even then it doesn't cost alot these days. 2m should stretch to allow for travel. It's hardly living on the bread line is it.

 

So to feel set you need four to five thousand dollars EVERY WEEK FOR THE REST OF YOUR LIFE.
That is ridiculous.

On another note, to be able to get enough assets to reach this goal, unless your income is something ridiculous like 350k/yr, you must be sacrificing and living on a whole lot less than that for the rest of your life to save up to get that kind of income when you retire.

If I was in that situation, I would definitely rather retire (or semi-retire) 10-15 years earlier and live with 100-120k.

 

Biatch! Please! Do you know where you are? You on PROPERTY CHAT!