“It takes a giant step in wealth to fundamentally alter how we live our lives” – Nick Maggiulli (www.ofdollarsanddata.com)The question is, how BIG is that giant step? How much more do you need to accumulate to experience a fundamental improvement in your life? Is it more like a leap whereby we have to multiply our networth by 10 times for each upgrade in lifestyle? This appears extreme at face value, but that’s what Nick suggested in his article. My experience and intuition suggests that a more reasonable approach...
Many years ago, I had assumed that the journey to wealth is a meandering linear path. Slowly and steadily, wealth stacks up. Dollar by dollar.
What I failed to take into account then is the declining utility of every next dollar.
So instead of a linear path, I have updated my views and now believe that a wealth ladder is more appropriate. Simply because:
