Question for y'all

What would your net worth have to be, relative to your current income, for you to either temporarily quit your job and possibly gain new knowledge/skills that would enable you to gain more lucrative employment, or permanently quit your job and begin your retirement?

Allow me to elaborate. Suppose your current gross income per year is $31,000. My expectation is that any (young) individual with that kind of income would immediately quit their job if they won the lottery and their net worth suddenly exceeded $10 million. What that means is, my expectation is that any (young) individual with a net-worth to income ratio of $10,000,000 / $31,000 = 322 would most likely quit their job. (I put the word "young" in parentheses because oftentimes an old person in retirement will work for the sake of working, even if they are well off, simply to stay active, whereas most young people work out of self-preservation or ambition for a better future).

So, a net-worth that is 322x one's annual income is likely to lead to immediate termination of that employment that provided that income. But, a net-worth that is only 1x one's income is obviously much less likely to motivate somebody to quit their job (you can't retire on a net-worth of $31,000, especially if the bulk of that net-worth is one's home). So, clearly that multiple is somewhere between 322 and 1. I suspect that that range can be narrowed down to a much smaller range. In fact, I would expect that a net worth of $1,000,000 would also be enough to motivate somebody to quit a $31,000 annual wage job, which means that range is actually between 32 and 1. I also expect that a net-worth of 2x ($31,000 mobile home and $31,000 savings) might not be enough to motivate somebody to quit their job which provides $31k income. So, that means the range is somewhere between 32 and 2.

So, basically, the question is: What is the minimum net-worth-to-annual-income ratio that would motivate you to quit your current employment?

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Question for y'all Question for y'all Reviewed by Louhi on décembre 09, 2021 Rating: 5

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