[ExI] Psychology of "Entitlements"

[BillK]

On 5/15/09, Alejandro Dubrovsky wrote:
>  I don't think you've done your calculations correctly:
>  Average full time salary in Aus is very close to 50k, which leaves 40k
>  after tax if you don't owe HECS (37 otherwise).  Dole is 15k with rent
>  assistance, but before all the other benefits (concession card,
>  telephone assistance, etc).  If you assume you are happy to live on the
>  same amount of money while working full time as you are on the dole
>  (very hard, much more expensive to have to get out of the house every
>  day and also to keep work-stress manageable without money), you can save
>  25k per year.  7 years gives you 175k, good for under 12 more years of
>  dole equivalent.   7 on/12 off is not a terrible split, and I hope I can
>  do that, but it's not 7 on/infinity off.
>


You are forgetting the wondrous magic of compound interest.
(Not unusual - the secret is known only to a few)  ;)

It starts slow, like all exponentials, but the end is wonderful!


BillK