Wealth can be defined in many different ways, but classically it is measured through one’s net worth. Your net worth is simply everything you own versus everything you owe. The own part of the equation includes real estate, cash, stocks, bonds, 401(k)’s, IRA’s, businesses, and much more. The owe part of the equation includes mortgage debt, student loan debt, car loans, credit cards, and more. Once you subtract the liabilities from the assets, you can begin to determine just how rich you really are in today’s day and age.
WHERE DO YOU RANK IN WEALTH
(source: wsj.com)
(If you have a household net worth of X … you rank in the Y percentile):
$50,000 … 60th percentile
$93,000 … 50th percentile
$100,000 … 48th percentile
$200,000 … 34th percentile
$500,000 … 18th percentile
$750,000 … 12th percentile
$827,000 … 10th percentile
$1 million … 8th percentile
$1.4 million … 5th percentile
$6 million … 1st percentile
There is a really cool website http://www.globalrichlist.com/ where you can enter either your income or your basic net worth and it will show where you stand in the United States or even the world. The chart above only reflects the United States. In another article we will examine household income, but you better start saving if you want to make the top 1%!
Written by: Ted Jenkin
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