I stumbled onto this ultra-simple net worth comparison tool a few days ago.
It’s ultra-simple because it only compares two factors: your age and your income.
The good news is my net worth is 42x greater than the median for my age.
The bad news is my net worth is 22% less than the median for my income.
There’s always the danger of delusion when comparing your finances to those of other people. It can lead you to make false comparisons. Still, I think I’m doing pretty well considering we’ve been living on a single income for 5 years. I suppose maybe I should only use half my income for this comparison then?
Hmm… let’s see… Ah, that’s better. Now my net worth is 4x greater than the medium for my income. I’m not really sure that makes me feel much better though, I mean I may be “gaming the system” a bit here. And what if I’m not? What if the median net worth for my age and income really is that low!
Go ahead, try it yourself and see what you think.
NOTE: I’m not sure what year the data was taken for the comparisons. I suppose the figures represented are about 20% or more off after the recent pummeling in the markets…
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