Q: What’s your net worth?
A: Currently (mid 2016) 121 times what I spend annually. If you learned your multiplication tables, you can compute the dollar amount fairly precisely with the information you have already. If you can’t, you don’t deserve to know! I try to update the NW number at the beginning of the year on the
About me page. Because I retired with realistic projections (rather than optimistic ones) and because I live a value-producing lifestyle rather than a consumption based one, this number keeps rising. Being this high it mostly fluctuates with my portfolio. This amount will theoretically last the rest of my life with an extremely safety margin. If you don’t understand why investing the equivalent of even 40+ years of expenses will last much longer than 40 years, you need to read up on some basic retirement math or ask a qualified CFP or similar. Also, 121 years (that’s the unit) means I could theoretically increase my spending by 3-4x and likely not run out of money.
Q: How do you deal with all your sacrifices?
A: How do you deal with yours? A sacrifice does not mean giving up something. A sacrifice means exchanging something for something better. I have given up shopping, credit cards, expensive cars, large houses, season tickets, and vacations in exchange for the joy of not having to work, the
ability to spend all my time as I want, and the lack of stress from never having to struggle to make ends meet. If you know the answer to how you can sacrifice 60 hours of your life a week for the next 40 years, you know the answer to how I can sacrifice not eating out or buying stuff without thinking about the cost.
Q: How much did you pay for that? [Most common question IRL]
A: Probably nothing, unless it looks expensive in which case, probably more than you think. I buy luxury items from the “upper class” used (and so do they) and swap and recycle items with the “middle class” for free. You’ll rarely see me in the mall.
Q: [Related] how can you live comfortably on so little money?
A: First, I spend my money more than twice as efficiently as the average person. Actually, the true factor is closer to four times as efficiently but that sounds like bragging. This means I get more utility out of each dollar. Second, don’t confuse spending money with living comfortably or having fun. Comfort is mainly about living without constant stress and fun is mainly about what you do rather than what you spend. If you can’t do anything without spending, naturally you wouldn’t have fun and you would probably also be stressed due to this inability. However, it is possible to overcome this inability. Third, when I buy things, I consider the long run. How much I pay for something now does not matter as much as how much it costs in the long run. I consider most of my purchases the way a business would