How Wealthy Should You Be?

Another way of defining wealth or not a person, household, or family is based on ones expected level of net worth. A persons income and age are strongest determinats of how much wealth that person should be worth. In other words, the higher one's income, the higher one's net worth is expected to be (assuming one is working and not retired).


How to Determine If You're Wealthy
What ever your age, whatever your income, how much should you be worth right now?

Multiply your age times your realized pretax annnaual household income from all sources except inheritance. Divide by ten. This, less any inherited wealth, is what your net worth should be.

Fact most people who are wealthy live modestly. Put their money into savings and then invest. Their car may be 10 years old but, if one would not be able to work they would be able to survive much longer than if they hadn't.