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I'm way above average net worth only because I don't have kids. I believe most of the posters here who are well off tend not to have kids.
Yes, I notice a lot of the early retirement crowd either have no kids or only one.
Quote:
Originally Posted by Stockyman
What's the point of having a huge net worth if you let your life pass you by and being an extreme frugal person all the time without a social life? Great if you are laid off or have a long-term illness but otherwise what a sad life.
This sounds a little too binary to me.
The Frugalwoods provided some good tips on this topic:
Lol, I don't get the responses from you guys. Why are you talking about "families" when I was pointing out that the structural deal with his wife is one that is a recipe for alimony?
Dude, please! Your cynicism is off the charts. I am not trying to sound high and mighty, but I think you could benefit from seeing a counselor. I say this as someone who did some sessions myself. It helped.
Latest info from the US Census Bureau/American Community Survey is from 2012-13: Richest counties by Median Income
#1: Louden County, VA: $117,876
#2: Fairfax County, VA: $109,383
#3: Howard County, MD (home sweet home): $108,844
...
#14: Santa Clara County, CA: $91,425
Ok, the article I read said Santa Clara was the highest. I wasn't trying to brag...more prove a point that 200K is not the median income for the SF Bay Area as some highly paid folks seem to think.
That's true however we're talking about net worth. Not someone's financial flexibility. Net worth by definition is assets less liabilities. What you are doing is listing what you feel is your net worth by distorting the definition. I'm not saying you're wrong to not count your home into your financial picture (if you're never planing to ever sell your home that equity shouldn't ever factor into your financial picture) but if you're going simply off the net worth definition you would be incorrect. Net worth literally means if you were to liquidate all assets and payoff all of your debts; what would you be worth.
Blech. So be it. I think the definition of Net Worth should be changed. I mean, if we really want to be so strict about our definition, we should be including the value of our furniture, etc, too, which seems silly to me.
I was not planning to post since I don't fit the norms on this board when it comes to salary, NW and age so I didn't see the point. But I realize while numbers are nice, it is not everything. I am a single mom living in the very high cola Bay Area earning a wage that most in this area would not consider "livable wage". Wealth comes in many different forms, I get to live in an amazing area, have loving relationship with my precious child, many wonderful friends, no debts of any kind so I sleep well at night, fun and non-stressful job that allows me to enjoy my time outside of work and experience what the Bay Area has to offer. I am more than content.
Ok, the article I read said Santa Clara was the highest. I wasn't trying to brag...more prove a point that 200K is not the median income for the SF Bay Area as some highly paid folks seem to think.
I believe this is changing quite fast with the Silicon Valley's abundance high wage tech positions that keeps springing. Those who can afford to stay that earns a salary on the "lower" than average amount are most likely already homeowners with a more locked in housing costs.
Location: Chapel Hill, NC, formerly NoVA and Phila
9,779 posts, read 15,793,171 times
Reputation: 10888
Quote:
Originally Posted by UntilTheNDofTimE
That's true however we're talking about net worth. Not someone's financial flexibility. Net worth by definition is assets less liabilities. What you are doing is listing what you feel is your net worth by distorting the definition. I'm not saying you're wrong to not count your home into your financial picture (if you're never planing to ever sell your home that equity shouldn't ever factor into your financial picture) but if you're going simply off the net worth definition you would be incorrect. Net worth literally means if you were to liquidate all assets and payoff all of your debts; what would you be worth.
Completely agree. Net worth is not an opinion. It is not what you, I, or anyone else *thinks* it is. It has a specific definition: assets minus liabilities.
Furthermore, if you do not count a house as an asset, what do you do with the mortgage amount - not count it as a liability? Or include the liability and not the asset? Same thing with a car. If you do not count the value of the car, what do you do with the car note? What if the car note is greater than the value of the car, is your net worth better off because you don't count either?
By not counting homes and cars as assets, do people who rent and take public transportation benefit from how they think net worth should be defined?
Compare the following two people:
Person A: Has $50K in the bank, a house worth $400K and a mortage balance of $100K. She is paying $2500 per month on her mortgage.
Person B: Has $100K in the bank and pays $2500 monthly rent on a house.
By not counting a house as an asset, Person B has a higher net worth ($100K) than Person A ($50K). Does that seem accurate? Is Person B REALLY worth more than Person A?
Of course not! Person A has a higher net worth ($350K) versus Person B ($100K).
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