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How do you tell where you are compared to others ?


There are two comparison tools that I find interesting that offer some insight.

The first is based upon a study done by the writers of the book The Millionaire Next Door. It's a simple calculation that has been open to criticism because it doesn't accurately reflect the comparitively smaller wealth of younger workers (age 39 might still be too young, but try it anyway). The typical millionaire profiled in the book was in their 50's.

Calculation: Take your houshold income * Age / 10. If your net worth is greater than this number, congratulations, you are exceptional and are on the path to wealth. If your net worth is greater than 2X this number, you are elite even among the profiled millionaires ("PAW", Prodigeous Accumulator of Wealth).

The second tool is a calculator that compares your income/age/wealth with statistics compiled from the government (probably the same numbers that were offered in census link). Just type in your numbers and the tool will compare you with everyone else. According to the tool, persons aged 39 have median wealth of 52,000 and a median income of 42,000.

http://jcgi.pathfinder.com/money/howareyoudoing

The measure I like best is the "net worth by income" table. This determines how "efficient" you are at turning income into wealth compared to the rest of the workers.

rustedSoul

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