• 02:24:50 am on August 23, 2008 | 8

    What sort of buggy are you riding?

    Just in case you still aren’t convinced that you need to change your mode of transport, compare the Annual Required Compound Growth Rates from yesterday (to reach your stated Number by your stated Date), to what you have achieved so far in your life:

    Finalist                  NWiQ                  Age                   Growth Rate

    Lee                          $77,958                60                          10%
    Deanna                    $52,656                37                          20%
    Andrew                    $29,000                21                          74%
    Luis                         $62,845                35                          23%
    Diane                       $66,146               47                           14%
    Mark                        $232,550             31                           41%
    Josh                         $19,300               24                           38%
    Ryan                      $129,500               31                           36%
    Jason                       $82,600               33                           28%
    Shannan                    $1,000               27                             0%
    Debbie                      $1,000               28                             0%
    Scott                         $1,000               33                             0%

    Notice how the younger folk seem to have higher growth rates … for some it may be a result of smart investing, but if you look closely, you will probably see that it can be simply due to the amount of money these folks can sock away since they don’t have many personal commitments.

    In fact, over time – for most of these folk – their long-term growth rates will simply tend towards the long-term growth rates of their bank accounts, CD’s, 401k’s or whatever mixture of investments that they choose … hence growth rates of less than 10% to as much as 20% are the long-term ‘norm’.

    Something to think about ….

    Also, I have simply shown negative Net Worth on this table as $1,000 since my calculator couldn’t take a negative number … student loans are the major culprit in most of these cases, with a mortage or two and a credit card or so thrown in for good measure.

    Time to hop off that train …

    PS to do these calc’s, I simply started each person off with $1,000 in their kitty at age 15 and went from there … obviously if they started with $1 or $5,000 it would change the results but not the principles.



  • Jason Dragon 3:41 am on August 23, 2008 | #

    The most sad thing about all of this was that 4 years ago I was worth over $400,000. But some bad moves, and 100k decline in the value of my house made that go away.

  • Deanna 10:49 am on August 23, 2008 | #

    I’m fine with airing my financial laundry, but my age? oof.

    All of our networth is either retirement, a tiny bit of equity in our houses and a couple of paid-for cars that are 8 years old. Sad….

  • AJC 12:10 pm on August 23, 2008 | #

    @ Jason – Easy go, easy come? 🙂

    @ Deanna – The price of ‘fame’ … just imagine what ‘laundry’ you’ll need to air if you make the Final 7MITs!

    Given that the Date is (at least) as important as the Number, you starting Number (MWiQ) and starting Date (age) are important pieces of info to share. I’m 49 🙂

  • Scott 12:54 pm on August 23, 2008 | #

    What if the train someone’s on was very expensive to purchase/develop and trick out with fancy mods/upgrades, but once it takes off on the track, it moves much farther and faster than the other trains? Should we still jump off it? 😉

  • Deanna 1:19 pm on August 23, 2008 | #

    @ AJC – you won’t be posting my weight now, will you?

  • AJC 1:20 pm on August 23, 2008 | #

    @ Scott – The Destination matters most … if you can legally/ethically get there in time by Acme Helium Balloon Model X.082, I say “go for it!” 🙂

  • Scott 1:33 pm on August 23, 2008 | #

    LoL, just joking 😉 I know how everyone likes to take a jab at doc’s and lawyers because of most typical high lifestyles and beginning negative networth with professional student loans. I’m just glad my wife and I have gone from approximately negative 220k networth to neg 25k networth in just over 2 years since I’ve been going at it hard in practice. Now we can put the knowledge and discipline we’ve gained while accomplishing that to work to quadruple those results in upward progress over the next 2 years.

  • Shannan 5:15 pm on August 24, 2008 | #

    It’s absolutely time to hop off that train. My NW will be in the positive on its own very soon.

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