Junior named this blog inadvertently.
Remember your school math class? Don’t want to remember? Ok, I don’t blame you.
Factorial is a powerful math function that amplifies the full strength of a number, creating a huge number by multiplying the previous numbers before it. It has the same math operator that we all use to convey surprise (!). Factorial really packs a punch! See how it works:
1! = 1
2! = 2×1 = 2
3! = 3x2x1 = 6
4! = 4x3x2x1 = 24 (4 Factorial is 4 times larger than 3 Factorial)
5! = 5x4x3x2x1 = 120 (5 Factorial is 5 times larger than 4 Factorial)
And so on…
Are you thinking.. so what? The beauty of this math operator is that, like in life and money, each step you take forward amplifies all the steps you have taken before. When you get to Ten Factorial (10!), it works to 3,628,800! If you don’t believe me, try it yourself with a calculator. That’s what Charlie Munger would call a lollapalooza effect. No wonder, the math gurus chose the exclamation point for it. When I explained this to my fifth-grader kid, the immediate reaction was “Wow! Ten Factorial Rocks, dad! It’s even bigger than a million!”. That’s how TFR Jr. helped me name this blog.
Ten Factorial rocks indeed, aside from proving that the kid’s father is a geek.
What’s special about Ten Factorial?
$10! ($3.63 Million) is the net worth target TFR household is aiming for. Once I get comfortable with blogging, I will start sharing where I am tracking but that’s the goal. But TFR is about much more than personal finance. See why.
If you are wondering why we have such an odd target, maybe this will clear things up.