Your Net Worth is what!? My Next Mission is a “Go to Hell” Fund

norman rockwell

Norman Rockwell Artwork

For the past week, I’ve been reading The Millionaire Next Door, a look into the lifestyles of millionaires and how they are not so different from your regular neighbour next door.  They have become millionaires through smart, frugal living and adhering to a budget, no crazy impulse spending and surprisingly they do not purchase many luxury goods.

We all know why I am not yet a millionaire; I have a propensity for “trading wealth for acquiring high-status material possessions”.  Too many fancy vacations, expensive hobbies that don’t last and a few designer-clothing items have knocked me off the fast track to millionaire status.

In fact, according to the calculation in the book, I am about $281K off the mark to what my net worth really should be for my age. How is that for a major shock? You read right, I am $281,000 dollars off the mark. I’ve already gone through the “my RRSP savings are not enough” stage and am now moving on to the “my net worth is paltry” stage.  My current net worth is $15K. Yep, paltry.

“How to Determine If You’re Wealthy”

The book offers up a simple formula to calculate your net worth:

Multiply your Age times your realized pre-tax (gross) annual household income from all sources. Divide that by ten. The resulting number is what your net worth should be.

According to the book, I am a UAW, or Under Accumulator of Wealth – now I have one extra title to add to my moments of financial disgrace. Why am I a UAW? Well, I’ve spent most of my adult life trying to forget my tumultuous childhood (kids can be mean), by trying to impress and please others through the false façade I’ve created. I have worked, I have earned and I have sacrificed my entire financial future/independence to impress others exclusively. How is that for honesty?

Now that the moment of truth is out of the way, it is absolutely no reason for me to be discouraged, this can still be solved by pulling up the bootstraps, practicing frugality exclusively and cutting myself off from all temptations – read fashion/clothing.

Buying only what I need? DONE. Continue coupon clipping – I’m on it!

Focus is the name of the game; I must remember the long-term benefits of budgeting; which is not having to work forever.

Once my debt is gone, my next mission is to take big steps toward a “Go to Hell Fund” because I don’t know about you, but I do not want to have to work forever.

Do you have a Go to Hell Fund? Is your net worth on track for your age/income?


  1. I’m on track with my finances, maybe just a teensy bit over, but I know I wouldn’t be if I was still married to my ex, yikes! Thankfully this time around I found a wonderful partner who is even more of a saver than me, yay. He is such a good influence, it makes a huge difference!
    We don’t want to work forever, even though we are well paid and enjoy our careers. My goal is net worth of 2M, then I think if we sold the house and most worldly goods, we could travel foot loose and fancy free (within a budget of course). I think it would be fun to roam and rent apartments or condos for a few years and see if we ever wanted to settle, I love reading websites of perpetual travelers.
    Measured results have a natural way of improving. So keeping track is a start!

    • Nice! Glad to hear you’re on track and you’ve found a like minded partner. I think it’s so important to be financially compatible in a relationship. My ex and I weren’t and that was one of the reasons we split.
      I love your idea of perpetual travel and roaming and renting, sounds like fun!

  2. I read The MIllionaire Next Door as well and it certainly was an eye opener but not shocking because many people tend to judge people on the “stuff” they have rather than recognizing that the guy next door who drives the used rusty old car may just be sitting on his nice little hidden jackpot. I’ve learned to not care much about what others have and focus on our own personal health. Do we have a go to hell fund.. hmmm we have an emergency savings if that’s what you mean and certainly it’s there for that rainy day and any other items we need money for that becomes an emergency.

    • That’s my father, LOL! He always drove a used car and misered away his money into savings. It was all worth it for him, he retired at 45 and lives in Hawaii 6 months of the year, they still live very frugal. Too bad only half of it rubbed off on me 😛 I’ll get there, I have faith in myself that I will.

      Yep, your emergency fund is exactly that, a go to hell fund!

  3. I panic time to time looking at those numbers and other bloggers’ net worth. But like you said, focus is the key here. A lots changed in one year since I started blogging to stay focused, I’m sure things will be more positive as I stay focused and clean this mess up. Continue good work!!

    • Thanks! :) Things do get better, hang in there! I’m a lot farther along that I was a year ago, you’ll get there. Keep up the good work.

  4. Michelle,
    I have an FU Fund which will allow me to walk away when I need to. Once you get a large enough surplus it will actually reduce your stress level as you won’t worry about a job loss.

  5. I did mine and I’m behind too but not as far as I’d thought. In fact I’m kind of surprised it was that low. I think it’s never to late to write a new story about yourself. Whatever you “were” can be changed into the you you want to be now…despite difficult pasts. :)

    • You’re so right! It is never too late to re-write the chapters of your life We’ll both get there, good luck :)

  6. I LOVE the idea of the go to hell fund – just the thought of having the option to say that to a boss one day and walk straight out without looking back is enough motivation for me to start saving like crazy! Right now, all of my side hustle income is going straight into that fund. I’m with you: I don’t want to work the rest of my life. And I don’t want to be forced to work a job I hate, either.

  7. That calculation made me really sad when I first did it after reading the book. I was $60,000 in debt and it didn’t account for that fact.

    I prefer looking at other ways to calculate net worth which I have listed here: What should your net worth be?

  8. I have to admit, having an adequate emergency savings account allowed me to say go to hell to my last job when a new opportunity arose. If I hadn’t had a few grand saved up to make the move and find a place to live, I wouldn’t’ve been able to take it. And it’s been going way better than the last job so far!


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