Where Do You Stand?
So today I was curious to find out where exactly my husband and I stand compared with people our age and compared with people who make around the same amount of money. I did a little bit of Googling and discovered some handy tools on CNN. At age 30 and an annual income of $145,000 this is where we stand:
With our current net worth hovering around $300k, I’d say we’re doing pretty well compared to others who are our age.
However, compared with others who have a similar income, I guess we’re not doing as well….
A grade of “B” is not bad but there are definitely areas that we can improve on.
Based on the Financial Health calculations, I need to:
- Allocate more money into stocks
- Decrease the percentage of money we have in company stock
- Increase our life insurance benefits
So I’ve learned that we are doing well for our age but for the amount of money that is coming in we should be doing better. My guess is that since most people who are making $145K are probably older than us, they’ve had more time to accumulate their assets and therefore have much higher net worths.
After we move, I’d like to straighten out our investments and invest in more stock. My husband will be participating as much as he can (we’ll have to figure out what the best contribution amount will be) in the employee stock purchase program but I’d also like to diversify our investment portfolio.
December 29th, 2009 at 10:01 am
I also used the tools and blogged about it a while back. I was very wary of the income-to-networth comparison. I thought it to be a little flawed because it doesn’t take into account that by virtue of making more you could be spending more (not investing more!). I also did awesome in the networth to my age comparison, but my income vs. networth wasn’t too hot.
January 1st, 2010 at 1:50 pm
I wouldn’t worry about the net worth for your income. You are fairly young and I would assume that most of the people in that income range are older, thus having more time to save to build up that high net worth. You’ll get there.
January 5th, 2010 at 10:09 pm
I’m jealous! My wife and I made would be making a comparable amount if she was still working… Once our son was born we decided she would stay at home and raise our son.
It’s still good though.
February 5th, 2010 at 1:01 am
I like this nifty tool and I’ve used it before. Here are my numbers:
Median net worth for your age is:$8,525
Check.
Median net worth for your income is:$34,375
Check
Great blog! Keep up the good work!