Comments on: Applying the 20% Rule – Part II ( Your Possessions) http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: real rich, real simple, redux- 7million7years http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-17473 real rich, real simple, redux- 7million7years Fri, 24 Jun 2011 03:59:52 +0000 http://7million7years.wordpress.com/?p=127#comment-17473 [...] Control your spending, and save as much of your salary as you can to build a war chest for starting / running your [...] [...] Control your spending, and save as much of your salary as you can to build a war chest for starting / running your [...]

]]> By: The Real Value of Money?- 7million7years http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-5799 The Real Value of Money?- 7million7years Sun, 25 Jul 2010 09:44:13 +0000 http://7million7years.wordpress.com/?p=127#comment-5799 [...] And, if you’re going to buy a Porsche Cayenne then, why not buy it now (if you have reached your Number and/or can afford it within the 5% Spending Rule)? [...] [...] And, if you’re going to buy a Porsche Cayenne then, why not buy it now (if you have reached your Number and/or can afford it within the 5% Spending Rule)? [...]

]]> By: Insure your future? « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-753 Insure your future? « How to Make 7 Million in 7 Years™ Tue, 05 May 2009 13:08:34 +0000 http://7million7years.wordpress.com/?p=127#comment-753 [...] Pay cash for your cars, don’t acquire credit card debt, buy your own home, obey the 25%/20%/5% [...] [...] Pay cash for your cars, don’t acquire credit card debt, buy your own home, obey the 25%/20%/5% [...]

]]> By: real rich, real simple « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-754 real rich, real simple « How to Make 7 Million in 7 Years™ Thu, 30 Apr 2009 08:51:02 +0000 http://7million7years.wordpress.com/?p=127#comment-754 [...] Control your spending, and save as much of your salary as you can to build a war chest for starting / running your [...] [...] Control your spending, and save as much of your salary as you can to build a war chest for starting / running your [...]

]]> By: Avoiding a one-way ticket to misery … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-752 Avoiding a one-way ticket to misery … « How to Make 7 Million in 7 Years™ Mon, 27 Apr 2009 08:29:03 +0000 http://7million7years.wordpress.com/?p=127#comment-752 [...] To decide how much house, cars/possessions, etc. that you can afford simply apply the 20%, 5% and 25% Rules to your ‘Number’, [...] [...] To decide how much house, cars/possessions, etc. that you can afford simply apply the 20%, 5% and 25% Rules to your ‘Number’, [...]

]]> By: James http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-759 James Thu, 02 Apr 2009 13:13:03 +0000 http://7million7years.wordpress.com/?p=127#comment-759 Thanks Adrian. That definition makes sense. I suppose a large enough vinyl / CD / whatever collection would count since it would have some value and could be sizeable. I'll continue to use a conservative estimate in the value of it though. Thanks Adrian.

That definition makes sense.

I suppose a large enough vinyl / CD / whatever collection would count since it would have some value and could be sizeable.

I’ll continue to use a conservative estimate in the value of it though.

]]> By: Adrian http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-760 Adrian Thu, 02 Apr 2009 12:11:28 +0000 http://7million7years.wordpress.com/?p=127#comment-760 @ James - After reading yesterday's tongue0in-cheek tripe, I'm surprised that you came back for more punishent!? :P Great question! The simple answer is that anything that you can buy from your daily or weekly budget is probably a 'consumable', whereas, anything that you need to save up for (or finance) is probably a possession. But, you are right: building up a CD collection over time creates a 'possession' again ... hmmmm, I think I'll have to sleep on this one :) @ James – After reading yesterday’s tongue0in-cheek tripe, I’m surprised that you came back for more punishent!? :P

Great question! The simple answer is that anything that you can buy from your daily or weekly budget is probably a ‘consumable’, whereas, anything that you need to save up for (or finance) is probably a possession.

But, you are right: building up a CD collection over time creates a ‘possession’ again … hmmmm, I think I’ll have to sleep on this one :)

]]> By: James http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-761 James Thu, 02 Apr 2009 09:36:25 +0000 http://7million7years.wordpress.com/?p=127#comment-761 What do you think should be included in possessions? Everything? In a way, this makes sense because even (lower cost) things like clothes, cheap furniture, CDs, DVDs are most definitely not generating any income! On the other hand, I have an approximate net worth of £26,000. Of this, £3000 is "Stuff". This obviously does not meet the 5% criteria... I have included all my major possessions (cheap car @ £500) and things like 500 CDs, using a value of £3 per CD = £1500 (i.e. 2nd hand resale value), Hifi @ £500 (resale value), cinema system @ £500 (resale value), computer @ £500 resale value. I have some books and some cheap IKEA furniture, as well as some cheap clothes, but where does one draw the line? Do you think resale value is the correct way to evaluate these things? Many thanks for your thoughts. James PS - I only discovered your blog yesterday and the April 1st post almost had me fooled! What do you think should be included in possessions?

Everything?

In a way, this makes sense because even (lower cost) things like clothes, cheap furniture, CDs, DVDs are most definitely not generating any income!

On the other hand, I have an approximate net worth of £26,000. Of this, £3000 is “Stuff”. This obviously does not meet the 5% criteria…

I have included all my major possessions (cheap car @ £500) and things like 500 CDs, using a value of £3 per CD = £1500 (i.e. 2nd hand resale value), Hifi @ £500 (resale value), cinema system @ £500 (resale value), computer @ £500 resale value.

I have some books and some cheap IKEA furniture, as well as some cheap clothes, but where does one draw the line?

Do you think resale value is the correct way to evaluate these things?

Many thanks for your thoughts.

James

PS – I only discovered your blog yesterday and the April 1st post almost had me fooled!

]]> By: Spending your Net Worth « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-758 Spending your Net Worth « How to Make 7 Million in 7 Years™ Fri, 27 Feb 2009 08:36:08 +0000 http://7million7years.wordpress.com/?p=127#comment-758 [...] introduced them to the 5% Cars + Other Possessions Rule, which Jeff seems to have forgotten covers all of your possessions outside of your home … not [...] [...] introduced them to the 5% Cars + Other Possessions Rule, which Jeff seems to have forgotten covers all of your possessions outside of your home … not [...]

]]> By: Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/comment-page-1/#comment-757 Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ Tue, 24 Feb 2009 09:00:57 +0000 http://7million7years.wordpress.com/?p=127#comment-757 [...] is obviously the other BMW-fan; we use his post to re-introduce the 5% Rule for cars and other possessions; should Josh have broken the rule to get int his first car? You might be surprised by the answer [...] [...] is obviously the other BMW-fan; we use his post to re-introduce the 5% Rule for cars and other possessions; should Josh have broken the rule to get int his first car? You might be surprised by the answer [...]

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