Base Measure for Income + A Better Crypto Return Measure Part Two
"Now Do Net Worth"
Part 1 saw a nice breakdown of some ways to re-think your income (It’s not about the fiat $$).
Honestly - some of these posts are so good I want to print them out and hang them on the wall. If you haven’t read last week’s post, go read it now. It should make you rethink what you thought you knew about money. This is a unique way to view your money and not some spin on out-dated advice Dave Ramsey ripped in the 80s and fintwit regurgitates daily.
Go read this first post and this one.
Base Measure for Income + A Better Crypto Return Measure Part Uno
You got a 5% raise last year. One of the highest at the company. Sweet Man, congrats. That seems like a straightforward good thing….right? Right? Well, one of the running themes on this substack is, “nothing in finance is as straightforward as the gooroos lead you to believe”.
Today we are going to cover the other big (arguably bigger) part of the equation - net worth.
Fintwit loves them some mehh net worth advice.
“If you put $40 a week starting at age 18 into the SP500 ETF you will be a millionaire by retirement”
“If you start investing at 20 you only need $300 a month, but if you start investing at 40 you need $4,000 a month to be a millionaire”
“Can you retire with $1million?”
(Or whatever fictious numbers they use with assumptions for continued equity growth)
Are the tweets wrong F’er?
I mean…the math works out most of the time (hilariously many times it doesn’t because maf is hard). But the actual message they are selling you is complete trash.
Why?
Ohhh boy, this post is going to get into it.
