What Does Annual Gross Income Mean
Question: What does making the First Million Dollars mean (Part 2)?
Hi there
So far the 1 answer I got explains assets less liabilities = net worth.
Does net worth = making my 1st million dollars? It seems like they are quite different matters. Because those people that ever revealed to me before are individuals in their late 20s+ & early 30s+. And they don’t own a lot of properties(usually just 1), don’t carry a lot of stocks ( a bit of shares, yes), retirement fund miles away. So I guess it has to do more with what they have earned. Pls don’t suggest I ask them (already feel like a fool not knowing).
So, it’s still back to part 1 of my question. For eg., do you take annual gross income x no. of years. Can anyone show me a sample of the numbers? How do you arrive at a million?
Would appreciate more answers from you guys out there.
Thanks.
Cheers
Answer: You’ll often hear the phrase “I made my first million at 30″ or the like. What this has traditionally referred to was the age at which the speaker’s net worth first reached $1 MM. There are sure to be folks who attempt to twist the meaning of the phrase to make it sound like they have amassed greater wealth than they actually have (e.g. multiplying annual income by number of years earning that income). But the original meaning of the phrase still refers to net worth.
No way to tell whether your friends are using the phrase correctly or not without getting a look at their books.
Davos Annual Meeting 2010 – Meeting the Millennium Development Goals
