Just been reading the “Millionaire next door” and they classify people as PAW (prodigious accumulator of wealth), AAW (average accumulator of wealth or UAW (under accumulator of wealth). What are you ?
Multiply you age times your realised pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be
If your answer is less than your net worth you’re a UAW, average a AAW or exceed PAW. Twice the value and you’re well positioned in the PAW category to be finacially independant.
Have a think about it !!
We’ve just about reached PAW and climbing. (Being divorced 10 years ago meant we had to start from scratch again)
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Hey congratulations! Good to see people not giving up after a big setback.
We are in the same position.
We buy properties in Adelaide. No Agent Fees.
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phone 0412 437 582blimey I’m so wealthy I can’t be doin’ me sums right– LOL– Ah I better get back to tradin me gold shares– -oh didn’t include today’s value in there- This must be some calculation to make every mug feel good–
Reaching the PAW stage is like reaching a high IQ, its great when you are there, but you have to keep building it just to maintain the same level.
Just like people’s IQ’s can decrease with age, if they dont keep adding to their intellegence, so can peoples wealth if you dont keep building more of it!
We buy properties in Adelaide. No Agent Fees.
[email protected]
phone 0412 437 582With the oil price going nuts last year, the company dolled out 3 big fat pay rises….all USD and all tax free.
That quickly brought me back from a PAW to a AAW….but then, not too unhappy.
Oh, and not to be too pedantic, the good Dr revised his formula a tad in later editions. Instead of dividing by 10, try multiplying by 0.112. A small change I know, but he refined it after studying a few thousand more millionaires. [biggrin]
love those books, have them both on audio – reminds me I will have to throw them into the mp3 again.
Perceptions of wealth versus reality.
Also strong lean towards to proven wisdom of counter cyclical investments, early adoption of new ideas and goal driven individuals. loved it.
[blush2] forgot to divide by 10 – was getting a bit worried[blush2]
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Hi AmandaBS,
I beleave I’m some where in between PAW and an AAW, I should of started my retirement plans ten years ago. But hey, every investor says the same thing. The millionare next door is one of my favourate books. I had some time ago left a post ( under what type of vehcle do you own ) asking if anybody could remember the formular for calculating what your net worth should be, to be on track for a secure and comfortable retirement. Thankyou for refreshing my memory.
Cheers..My years of travelling the globe have set me back…. but what a life I have lived so far!!!
Money is not everything…Yes ecatt money is the icing on the cake. Good health, longevity, happiness, a loving family, self reliance, fine friends, respect, integrity, honesty and a history of achievements will make that icing on the cake !!
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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