Did you ever wonder if you are on track for a wealthy life in the future? No matter what your age is, there is always a range you need to be in order to see if you are on the right track. There might be some debt in your life such as business, home or student loan. However if you plan your financial life good, there is nothing you can’t do.
To calculate your net wort, you basically need to add up all your cash and other assets, then subtract your debt from it.
For the people in 20s
This is the age where you start to do something. You might be finishing your college with a student loan. Instead of trying to learn if you are on track, you should focus on building it. Start your first job and retirement savings plan.
For the people in 30s
When you hit your 30, you should have saved half your salary saved into your retirement account. That means if you are making $55K in your 20s, you should have saved $27,5K by the age 30.
For the people in 40s
At this level of age, you should have a net worth of 2 times your annual salary. If you are earning $90K per year, you need to have $160K in your bank account.
For the people in 50s
A person who makes $100K a year in his/her 40s should have four times the annual salary which makes $400K in this example. Even tough this sounds a lot, if you start tracking this road at your younger ages, you should easily have this amount of money in your bank. If you start later to saving, you need to save more aggressively.
For the people in 60s
This is the age you need to have a net worth of six times your annual salary. If you have a $150K per year salary, then your net worth must be $900K. As you make this much before your retirement, you should be easily live comfortable in your retirement.