How much do you have in assets? (funds, pay, rent)

[Charles]

Originally Posted by freemkt

So a 50 year old making $12K a year should be worth 12K * 50 / 10 = $60K.

That's not realistic.

Neither is a 50 year old making $12K, or $1000 month or $6.25/hour.

I would expect a responsible 50 year old to have a lot more than $60K for a net worth - even if he is making $6.25 and hour.

[freemkt]

Originally Posted by Charles

Neither is a 50 year old making $12K, or $1000 month or $6.25/hour.

I would expect a responsible 50 year old to have a lot more than $60K for a net worth - even if he is making $6.25 and hour.

Presumably, to be worth "a lot more than $60K", a 50 year old would have had to save and invest a substantial sum of money over a number of years.

So how much do you expect someone making $12k a year to be saving?

[Charles]

Originally Posted by freemkt

Presumably, to be worth "a lot more than $60K", a 50 year old would have had to save and invest a substantial sum of money over a number of years.

So how much do you expect someone making $12k a year to be saving?

Ten percent is a good rule of thumb.

[snowdenscold]

Good job, you found an exception to a rule. Obviously people who make only 12K for decades were not in mind for the rule of thumb above.

[Themanwithnoname]

Originally Posted by freemkt

Presumably, to be worth "a lot more than $60K", a 50 year old would have had to save and invest a substantial sum of money over a number of years.

So how much do you expect someone making $12k a year to be saving?

For the umpteenth time:

We expect them to get off their ass and WORK to better the self, not be satisfied with something BELOW MINIMUM WAGE (which I don't buy)

If they don't care enough to TRY, (even if they constantly get on the Internet and try to attract attention, wanting someone to take putty on them or what, I don't know) then why should I?


Good rule of thumb from my understanding is if you save 15% of every $ you ever make... You'll be ok.
I'd recommending bettering that.


Eta:
I'd like a REALISTIC budget, including medical, unplanned expenses, recreation etc... Of someone making $1k/month.

[freemkt]

Originally Posted by Charles

Ten percent is a good rule of thumb.

Ten percent of $12K, is that realistic?

[oneasterisk]

Originally Posted by freemkt

So a 50 year old making $12K a year should be worth 12K * 50 / 10 = $60K.

That's not realistic.

It's also not realistic to think a "general rule" should apply to the outliers.

When I apply that "formula" to my situation, it's pretty close to what I have in liquid/illiquid assets - the mortgage debt. Every month that mortgage debt gets smaller and the assets get larger.

[chicagotodc]

Originally Posted by Themanwithnoname

If they don't care enough to TRY, (even if they constantly get on the Internet and try to attract attention, wanting someone to take putty on them or what, I don't know) then ...

Putty!

[freemkt]

Originally Posted by Themanwithnoname

For the umpteenth time:

We expect them to get off their ass and WORK to better the self, not be satisfied with something BELOW MINIMUM WAGE (which I don't buy)

If they don't care enough to TRY, (even if they constantly get on the Internet and try to attract attention, wanting someone to take putty on them or what, I don't know) then why should I?


Good rule of thumb from my understanding is if you save 15% of every $ you ever make... You'll be ok.
I'd recommending bettering that.


Eta:
I'd like a REALISTIC budget, including medical, unplanned expenses, recreation etc... Of someone making $1k/month.

Hey, I'm working on the income part, I have some online income which I expect to grow; I have $10K of inventory on hand.

Dunno about realistic but this is about what I've got now:

rent $400 (room in house)
utilities $75
taxes $150 (annual FIT $250, SIT $350, SS $350, SE $800 = $1750)
student loan $75
food $150
bus $35
internet $37
phone $15
everything else $63

Since income and utilities vary monthly, these are averages, and since not every expense is fixed, I have a little room to juggle things, and have an ample supply of nonperishable staples for leaner times.

[freemkt]

Originally Posted by chicagotodc

Putty!

Where did you find that? I went to Google Images and got 10 pages of software screenshots before seeing any actual putty.