WealthScore…. How Did You Go?

Hi there,

just had a look at wealthscore, this is  a great tool and it's very simple to follow. the only thing was the score, what a wake up call!   -440    to think if I stopped now so would my families means of support, not good.
its time to change and follow a winning formula.

Thanks

David

This didn't seem to work very well. My asset value (after debts were paid off) was $165,000 – more than my income of $160,000 – yet my score was 269 days (well under a year). Also it assumes you spend all of your income which is not even close to the case with me. I reckon if I stopped working and paid everything off I could survive for nearly 4 years, not merely 269 days.

Hmmmm … scored 734, this would give us enough income to survive on current combined income for 2 years. I imagine the score will improve greatly over the next couple of years as we have added another 4 IP's to our portfolio since April this year and in 2-3 years we should see some good capital growth in the areas invested in ……. Well, that's the plan anyway ….

Martin

8246 was my score. I could live till 2035.. WHo knows, with the boom coming I could live till 2070.. I could even afford for bodily reconstruction by then maybe.

you're right, I can just enter my spending per year instead of my income and that gives a much more accurate assessment of my wealth score. re my last post – actually it was $200130 of investment assets less $36132 of liabilities, meaning a final asset value of $163998. personal assets weren't included. Then divided by $160000 somehow this came out to 266 days, not the 374 that I thought it should. it seems like something isn't working properly.

 
nice tool 
but it is not a true reflection of my situation     Ho Hum
 

My score was negative to which is unpleasant. I also wondered the same thing as L A Aussie re the rental income. Then I did Steve's exercises in chapter 4 of his latest book and scored "Could Do Better" – an eye opener.

Then listened to the book launch mpeg and the book CD and am now in a blue funk even though the info was good. You just scared the pants of me Steve as two months ago we purchased a -ve geared IP for eventual capital gain as espoused by John Fitzgerald (and forced savings). And I just found out that 100 units will be be released for rental in the town in a few months! (it was the only town I could convince my husband to buy in as he was really nervous about purchasing any IP). I'd better use your suggestion about the reward movies tickets Steve.

The above have certainly made me realise that I need to put the thinking cap on and find some solutions to improve things. One option would be to turn our PPOR into an IP. We'd probably have to rent for a similar per week amount as that of the weekly mortgage repayment. The tax break would amount to about $51 per week – not that great but… $50 is $50. IF we could find a house that was cheaper rent the saving would be greater. And if the rent on our PPOR was greater than the mortgage repayment that would also improve the bottom line further. And our income statement would be more impressive. The goal was $750,000 – $1,000,000worth of income producing assets in 10 years. IS it achievable?

Not too sure about this tool…….my score was about 8000, and this equated to us running out of money in 2029. If our asetts were sold down, the interest earn't from the net equity invested at bank rates would considerably exceed the $80k nominated as living allowance requirements. (We don't find the need to spend anything like $80k now nor do we expect to for some time yet if ever, but we thought we should allow for the possibility for the sake of the exercise.) Of course we would not be likely to sell the asetts anytime soon as the net operating revenues (which continue to grow annually) currently exceed the $80k by 5  or 6 times. Even if the net equity were realised and just applied to annual living, since it would be ex capital funds no income tax would result so I should have used perhaps $60k, and by my calcs,(notwithstanding inflation) we could maintain that lifestyle for 35 years, not 22.
To be sure I was quite surprised to see such low scores from so many forumites so far. The wealthy ones must be holding back. To those who are battling to get ahead in the 9 to 5 jobs in the towns and cities: consider dairy farming! It is truly a wonderful career, providing enormous scope to test your mental and physical prowess, raise a family, travel the world and enjoy a host of recreational activities partially tax deducted, become involved in smaller communities for a most rewarding sense of belonging…really anything goes with Dairying. If you like computing, maths, genetics & genealogy,  physical exercise, animals, (cows and calves are magnificent animals) agronomy, (growing plants….pastures and crops are plants), working with modern machinery and sophisticated equipment, like a healthy lifestyle, like to be able to attend the kids sports days at school etc, but especially like wealth accumulation…………..then find out something about it and give it some thought. Despite the media reports, those with a bit of go in this industry can start with nothing but a dream, and without family help (which admittedly most do get…..but which we certainly did not) can essentially achieve being the Boss in as little as three years, and be financially free in 20 to 25 years. (And I should emphasise the cost of living comparatively well on a farm is probably much less than half what it is in the cities……I reckon it's better in my pocket than someone else's.) To those of you who cannot imagine such a radical change or who doubt this thread, all the best anyway.

Wilrose

(can't get that jolly emoticom out of my text!)

Well I can live until 2032 so I am a little bit amazed.   I suppose when money is tied up in property it doesnt feel like real money that you could use.  Its made me wonder a bit – like how great it would be to sell everything and just live off it!