This would be a bit of a strange scenario, but think about it for a minute. If you were required to sell everything you own, how many dollars would you be left with in the end? You would sell your house, your car, your snow-blower, your diamond earrings, and even your exercise equipment. Yep, everything. After paying all of your debts on these assets (because very few of us own our homes and cars free and clear), how much cash do you truly have? Do you have $1,000? $10,000? Or 100,000?
With that number in your head, do you know what you just calculated? You calculated your net worth. Simple huh? If you take all of your assets and subtract your liabilities (in other words, your debt on these assets), then are left with your equity, or net worth. According to Forbes, here is the breakdown of the average family net worth:
- Age 45 to 54: $117,900
- Age 55 to 64: $179,400
- Age 65 to 74: $206,700
Before you start grinning about how great you are doing in life, keep in mind that this is the average, and you certainly don’t want to be average in today’s instant-gratification-nobody-saves-any-money-for-the-future society. You should most certainly be set to have double, or probably even quadruple these average numbers.
Today is Sunday, which means I get to tell you about all of the other great articles out there. Here are some of the best articles of the week:
How to Overcome Being Tired of Paying Off Debt by Narrow Bridge Finance
Free Trustworthy Resources for Investors by 20’s Finances
How to Get Into the Stock Market by Prairie Eco Thrifter
Our Best and Worst Purchase of 2013 by KNS Financial
So You’re Thinking About Quitting Your Job and Travelling Around the World by Financial Samurai
It’s Time to Cut the Cable and Home Phone by i Heart Budgets
From Zero to Hero and Back Again, Twice! by Debt Round-Up
The Road to Saving Half – How to Define Savings by Frugal Portland
Four Easy Ways to Save Money During College – by A Young Pro
5 Ways to Save $50 Plus Per Month by Saving Money Today
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.