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Put it this way. The guy drinking out of a brown paper bag pushing the shopping cart down Santa Ana Boulevard has a higher net worth than a lot of people living in a home currently assessed at $700K. Why? Because he has a zero net worth and a lot of those homeowners are hundreds of thousands of dollars underwater.
In liquid assets around $200,000, along with two homes and some water rights with no mortgages or vehicle payments. The funny thing is we feel no more secure then when we only had a bank account of $5,000, and we don’t scrimp on many things. Whenever it starts to build up we spend, otherwise if we died tomorrow it would just be a waste of our efforts in saving and investing (age 48). It’s all about cash flow, if it slows we stop spending and if it increases we find things to dump it on or into (but we stay away from any payment/interest type propositions).
I doubt too many people feel comfortable providing this information even on an anonymous internet forum.
Multiply your age times your realized pretax annual household income from all sources except inheritances.
Divide by ten.
This, less any inherited wealth, is what your net worth should be.
So your net worth should be 30*85000/10 = $255,000
If your actual net worth is two or three times higher than the calculated net worth then you are doing great.
So a 50 year old making $12K a year should be worth 12K * 50 / 10 = $60K.
That's not realistic.
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