Archives For Net Worth Statement

Have you ever wondered what your net worth should be based on your age? Although this doesn’t exactly show you what your net worth should be, it will give you an idea of what the average net worth is based on age range.

Take a look at this Family Net Worth Chart from page A8 of the Federal Reserve’s 2004 Survey (PDF):

Net Worth Median and Mean

To make it a little easier to read, I took the figures and multiplied them by 1,000 and put together the following table:

Age Range

Net Worth

Net Worth

Less than 35



35 – 44



45 – 54



55 – 64



65 – 74



75 or more



Median means that half of the households surveyed had a net worth above, and half had a net worth below the median. So, for the less than 35 group, half of those who took the survey had a household net worth of LESS THAN $14,200 and half had a net worth GREATER THAN $14,200. Notice the huge difference between the median and the average. The survey used real net worth, which is the difference between a families’ gross assets and their liabilities.

My wife and I are way above the median net worth for our age group (35 – 44) but below the average net worth for our group. That’s okay with me because we are on the young side of our age group. I fully expect us to be above average by the time we are in the upper end of our age group.

Where do you stand?

If you need help figuring out your net worth, I did a series of posts on net worth that might be helpful:


Your Net Worth Statement Part I

Your Net Worth Statement Part II

Your Net Worth Statement Part III

Your Net Worth Statement Part IV

Your Net Worth Statement Part V

Have you ever wondered if you were “wealthy?” There is a rule-of-thumb formula used in The Millionaire Next Door for determining whether or not you are wealthy. For those who are interested, their simple formula is:

Multiply your age by your pretax income from all sources (except inheritances).

Divide that number by 10 to arrive at what your net worth should be.

So, if you are 35 years old and your household income is 60,000 per year, your networth should be $210,000 [(35 X $60,000)/10 = $210,000] in order for you to be considered wealthy.

If you are 9 years old and you get an allowance of $468 per year, you would be considered wealthy if your net worth was greater than $421.

The theory behind this formula is that the older you are and the more money you make, the more wealth you should have. So, the number is relative for each person’s situation.

Now, what I can’t figure out is why they chose the number “10” as the divisor. The book does not say. But, like anything, this is supposed to be a rule-of-thumb formula that is simple and easy to use.


Your Net Worth Statement Part I

Your Net Worth Statement Part II

Your Net Worth Statement Part III

Your Net Worth Statement Part IV

Your Net Worth Statement Part V

It’s not a new book, but I did finally get around to reading The Five Lessons a Millionaire Taught Me by Richard Paul Evans. I enjoyed it. Here’s why: Continue Reading…

Have you ever thought about how buying a new car affects your net worth? I did a little research and found out that the average new car depreciates 20% as soon as you drive it off the lot. So, if you buy a $30,000 car, it will be worth $24,000 the moment you drive it off the lot. WOW! So, let’s take a look at the impact such a purchase would have on a net worth statement.

Here’s what a net worth statement might look like BEFORE the car purchase: Continue Reading…

A recent survey released by the Spectrem Group found that there are 8.3 million U. S. households with a net worth of $1 million or more (excluding primary residence). That represents an increase of 800,000 households over 2004. Continue Reading…

Here’s an interesting article about the Top Ten Millionaire Counties from CNN/ The millionaire households Continue Reading…

I just read an interesting article called What We Own vs. What We Owe by Kenneth Harney of the Washington Post. The article talks about something called the home equity cushion, which is the amount of equity you have in your home divided by the amount you owe. Here’s how you calculate the ratio:
Continue Reading…