How Much Are You Worth?

07May08

A good way to measure yourself is to see how much you’re worth in terms of your assets. Basically, if I was to be traded on the Nasdaq how much am I valued at?…just kidding.

Tools

CNN Money provides a very simple yet basic net worth calculator that measures how much people in your age range are worth, as well as how much people in your salary range are worth. This is a good way to benchmark yourself against those who are similar to you.

My Results

Explanation

CNN Money has no data for those under the age of 25, so bear with me. I find it a little strange that the net worth of someone between age 25-34 is only $2,125. Many of us earn more in income per month according to a previous post, 2008 Best Paying Majors.

To benchmark myself, I am taking a look at the net worth of those who are within my salary range. A net-worth of over $100,000 may seem like a lot to those who just entered the work force and have less than a year under their belt, but fear not. According to 2008 government rules you can invest up to $20,500 in retirement accounts ($15,500 for 401k + $5,000 for Roth IRA). Throw in a 5% company match on the 401k and you could be looking at potentially $23,000 or more total that you can invest in a year to retirement accounts. Assuming your investments grow, you will be worth $100,000 in 4 years or less. Now take a look at the age range for those who are worth $100K+. They are in their 40’s. Fratboy for life.

…Thats Not All

You are not limited to your retirement accounts for your net worth. Obviously you can invest however much you want in a non-retirement account, which can further increase your net worth. What the CNN Money tool does not include are your assets. Investments are only a part of your net worth, things you own like your car, jewelry, house, and valuable items are also used to calculate your worth. Check out this worksheet you can use to figure it all out.

How Do The Greats Rank Up?

2008’s richest people according to Forbes.com says…

  1. Warren Buffet (77 years old) – $62 billion
  2. Carlos Slim Helu (68 years old) – $60 billion
  3. William Gates III (58 years old) – $58 billion

Not only are these people great investors, they are also great entrepreneurs who took risks to boast their net worth. Owning a successful company would drastically boast your net worth wouldn’t you say?

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