Money For the Rest of Us
How Much Should Your Net Worth Grow Each Year?
Jan 10, 2024
The podcast discusses the factors that shape the growth of net worth, including professional choices, risk tolerance, and lifestyle decisions. The speaker shares personal experiences of transitioning from a big organization to a small advisory firm, and eventually working for themselves. It emphasizes the importance of income, stability, and available opportunities in determining net worth growth. The chapter also explores personal growth, career choices, and managing oneself, including the impact of having a high net worth. It concludes by highlighting the challenges of determining net worth and the importance of maintaining flexibility and optionality in achieving the desired lifestyle.
26:19
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Quick takeaways
- Net worth growth should be balanced with a comfortable and sustainable level of spending.
- Profession, risk tolerance, and lifestyle choices play key roles in determining net worth growth.
Deep dives
Understanding the Importance of Assessing Net Worth Growth
The podcast episode explores the topic of how much net worth should grow each year. The speaker shares the example of his son conducting an annual review of his spending, which sparked a discussion about the allocation of savings for various purposes. The speaker highlights their own practice of reviewing their spending using Monarch Money, a budgeting tool. They found that their spending habits had not significantly changed over the years. The speaker emphasizes the idea that as net worth grows, it is essential to prioritize a comfortable and sustainable level of spending without constantly striving for more.
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