I got this email from a friend, so of course I had to check it out :)
There’s no real point in comparing your own wealth to someone else’s, but of course it’s a fun way to waste a few minutes on a Monday :) And who knows – maybe you’ll get a boost of confidence from it? We’re usually a lot more well off than we think we are, unless your name is Nate St. Pierre.
(I got his permission to share this with you FYI – I’m not that mean ;) He says that philanthropy doesn’t pay well, and I remember from when we ran Love Drop together. Great dude who follows passion over $$$, for the better or the worse… He also once fooled the internet into thinking Abraham Lincoln invented Facebook, but that’s for another day.)
Anyways, here’s the calculator: Wealthometer.org
You just have to enter four things – which most of you nerds will know off the top of your head:
- How wealthy you think you are (I put down 80%)
- Total amount of “real” assets (home, vehicles, etc – I put down $306,000)
- Total amount of “financial” assets (savings, 401k, etc – I put down $475,000)
- Total debt (I put down $292,000 – our mortgages)
- And the number of people in your household (I put 2 because babies don’t count, right?)
If you track your net worth, you’ll find these numbers there too. Or you can just guess, doesn’t matter.
Here’s where I landed compared to others in the U.S.:
“Your wealth is $244,500 per household member, which is more than what 85% of the US population own (blue bar). This means that 85% of US residents are less wealthy than you. At 80% a green bar at $151,244 marks your initial estimate.”
85% – I was close! You’ll notice “the 1%” (ie 99%) is in the $2,700,000 range. That’s quite a stretch from 14% lower at $244,500! I don’t think that’s a game I want to try and beat, haha…
You’ll also notice that you can still have debt (or, as my friend Maria prefers to put it, “negative wealth“) and be better off than others too. It just depends on how much debt you have. You might have been wealthier as a baby, but you know – life happens ;)
The calculator then goes on to account for some other
fascinating stuff like taxes, but sadly I wasn’t smart enough to continue. If it were mine, I’d have chosen to incorporate a few different variables instead. Such as:
- The level of what you plan on doing about it. (“Don’t give a $hit” all the way up to “I’m a hustla, I’m a, I’m a, I’m a Hustla!”)
- A place to choose what phase of life you’re in (“graduating with tons of debt,” “starting a family and babies eating all my money,” “Old, gray, and how do I use this mouse again?”)
- And of course, the amount you need to reach financial freedom. AKA early retirement. AKA the only thing that actually matters with money.
This would paint a much better – and blogworthy – picture, spitting stuff out like:
“Everyone may be wealthier than you, but you just graduated college and are a hustla, hustla, hustla baby! Unlike those older than you who don’t give a $hit…”
“Congrats! You’re worth $2 million dollars and better than 98% of everyone! But guess what? You’re old and forgot to have a life. Why don’t you stop working already?”
or, less drastic
“You’re as average as they get at 50% w/ your (maybe) affordable house and 2.3 kids, but you sure are living life, right? RIGHT? Who doesn’t want to be average? (RIGHT?)”
You could have a lot of fun pumping these out ;) And I bet people would pass it around the internets much faster too… Hell – anyone know of any good developers? I’ll jot this down right below my “where the hell is your podcast?” note on my big list of ideas, d’oh.
But, back to the point… which is….
Oh, yes. It’s fun to see where you rank amongst other fine Americans, Greeks, Italians and others you can compare with in this calculator, but at the end of the day what matters most is what it means to YOU. Does it make you happy? Stressed? Pissed? What are you going to do about it? What’s one thing you can start today to get you a tiny step closer to your goals?
I’ll offer up 3 if you can’t think of any:
- Walk into HR right now and increase your 401(k) percentage by 1%. You won’t notice it, and your money will grow like the dickens (if you don’t know what funds to put it in, check out my review of Smart401k – it’s free (for you))
- When you get home tonight stay away from the TV and instead spend one hour brainstorming ways to make extra money. If you already do that because you’re a rock star like that, then go around the house and find something to sell on Craigslist/eBay instead. That should only take you 20 minutes.
- Find the bill that pisses you off the most and call them up and ask if there’s anything you can do to lower it. Literally just ask them that and see what they say. If they say nothing, ask for a manager. If the manager says nothing, hang up and call the next worst expense on the list ;)
- *BONUS* If you really want to be on fire, create a spankin’ new spreadsheet and list out every single debt you have – including balances, %’s, due dates, etc, then create a new tab and put down all your bank/investment balances, and lastly a third tab labeled “net worth” where you subtract your total debts from your total assets to see where you’re at. Going forward, add anything – and EVERYTHING! – to this sheet relating to money!! You can put down account info, goals, dreams, random calculations that turn you on – whatev. You’ll be amazed at what happens once you see it all in one spot. I’ll make y’all a template later if you want me to, but start jotting stuff down today.
Okay, I’m off to the beach now to make some sand
dollars castles with my boys… I’m supposed to be on vacation, but couldn’t lock down my tasks ahead of time so here I am typing to you :) While my $$$ is in the 85th percentile, my work habits are leaning towards that old man w/ the $2 mil… And I definitely don’t want to be that old man with the $2 mil.
So *my* task today is to shut down the computer for a while and appreciate the stuff money gets you. Like hanging out with humans you love. I’ll be back later to see how you guys fair on this thing.
Here’s the calculator again: wealthometer.org
Share below and we shall discuss!
UPDATE: Fellow reader Gene Roberts found this calculator too which is neat: shnugi.com/networth-percentile-calculator. It uses more current stats, as well as an option to compare net worths by age range :) This one put me at 82% of the general population, and 94% of those my same age.
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!