Me no millionaire

A colleague shared with us some interesting points she read in the book "The Millionaire Next Door". If I remember correctly, the book was based on interviews done by the authors (a couple of psychologists, I think) of several well-off people in States.

So what did they find out? A millionaire's profile is:
- 50 something male
- retired, self-employed (but not necessarily a businessman)
- married with 3 kids; spouse is usually a housewife or if working, a teacher
- has lived in their residence for 20 years; usually owns secondhand cars
- spends 10% of earnings (not so sure about the figure, basta super way below their means)
There's more, but I can't remember them now.

Anyway, a question discussed was, if you own a million pesos now, are you already considered a "millionaire"? Answer: not necessarily. The measure of wealth differs with age, like a 40-year old is expected to have more wealth that a 23-year old.

So, how do you know if you're wealthy at your age? They've come up with the following formula:

Net Worth = Age x Gross Annual Income

10

The figure you get should be what you have in your savings right now. Now, if you have less than this amount, join the club. If you have more, call me. =)