So you have $100k of worth tied up in land for the house, I presume?
I didn’t mean to say that having at least a net worth of $100k was sufficient for being instrumentally rational, more that it is a necessary condition in most cases. If you’re 50 years old, say, then it is far from sufficient. Earnings trajectories tend to be superlinear, so accumulated total earnings grows in a highly superlinear fashion on average, making it relatively hard to set a clear and simple financial boundary.
So you have $100k of worth tied up in land for the house, I presume?
I didn’t mean to say that having at least a net worth of $100k was sufficient for being instrumentally rational, more that it is a necessary condition in most cases. If you’re 50 years old, say, then it is far from sufficient. Earnings trajectories tend to be superlinear, so accumulated total earnings grows in a highly superlinear fashion on average, making it relatively hard to set a clear and simple financial boundary.