Revision to Post: Calculate your Net Worth Tier

Hi,

I wanted to address some of the inaccuracies and oversimplifications in my recent newsletter, "Calculate Your Net Worth Tier” as it relates to the living costs of Jakarta, Indonesia.

I've revised the tiers and descriptions with a focus on progress, realistic expectations, and what financial freedom truly means to you. A new version is below.

At the same time, please share your feedback on what financial freedom looks like to you by emailing [email protected].

Financial freedom is when you have the flexibility to make life choices without being constrained by your finances.

Due to globalization, the cost of living in major cities worldwide is becoming increasingly similar. Additionally, our aspirations are often shaped by a global perspective, impacting our financial goals and what freedom means to us.

For other cities and countries, the description of the net worth tiers remains the same, though the numbers should adjusted accordingly.

What Financial Freedom Feels Like at Each Net Worth Tier

• Paycheck-to-Paycheck:

  • You have debt and/or no savings

  • You purchase most of your groceries from the Pasar

  • Your phone meets your basic needs and is reliable - as long as it works, keep it; even if the screen is cracked.

  • You use a combination of affordable public transportation (MRT, Transjakarta, angkot, Gojek with promos) and a reliable two-wheeler

  • You may need to borrow from others to pay for essentials at the end-of-the-month

• Grocery Freedom:

  • You never run out of essentials before the next paycheck

  • You don’t always choose the cheapest option on the shelf

  • You buy a phone you can afford without any financing

  • You use a combination of public transportation and a two-wheeler, but may consider GoCar from time-to-time

  • You can buy the fresh and healthy foods which you enjoy, even at a Supermarket

• Restaurant Freedom:

  • You order your favorite items on the menu without thinking about the price

  • You buy a flagship phone (Snapdragon 8 processor) with cash

  • You don’t worry about the Bluebird fare when you call a taxi at 6PM during rainy season or the gasoline/maintenance/tolls for your own car

  • You don’t dread when the server brings the check after a big fancy group dinner with friends

  • You can go to SCBD/Senopati restaurants if you’d like on a random weekday

  • You buy a single luxury leather bag or backpack that you will use more than once a week

• Travel Freedom:

  • You prefer direct flights and upgraded seats for you and your family,

  • You can exclusively use flagship phones and tablets

  • You can have the Alphard + Driver combo

  • Your trip always reflects your interests & desires; if mid-trip you are unsatisfied, you pay the additional fees to fix it

• House Freedom:

  • You can fly first-class or private to your fully-paid dream home(s)

  • You have multiple Alphards + Drivers for you and your family

  • Visiting your second-home on the beach or amongst the mountains is part of your routine

Calculating your Net Worth Tier:

Remember: Everyone Starts Somewhere

It's important to acknowledge that not everyone starts at the same place on the financial journey. Some may have a head start due to family support, higher incomes, or inherited wealth. That's okay!

This guide isn't about comparing yourself to others. It's about benchmarking your current situation and creating a personalized roadmap to reach your goal of financial freedom.

Important Takeaways:

• Progress is Key: Moving up even ONE tier is a win! The jumps are big.

• It's Personal: Financial freedom is about what feels free to you.

• Take Action: Consistent saving, smart spending, and investing can get you there. Start as soon as possible.

Next Steps:

• Use the descriptions and table to identify where you currently sit

• Find the net worth tier that you’d like to achieve

• Learn more about how to increase your net worth through savings and investments

Remember, measure what matters!

Salam,

Chris

P.S. Much love to my wife, Atsiri, for giving me invaluable guidance during the ideation and writing of this post.