SaveMillions Logo

Company InfoContact UsHelp  
Search  

Develop Your Personalized Financial Plan!

Steps to Build Plan
  Step 1 - Set goals
  Step 2 - Gather data
  Step 3 - Determine net worth
  Step 4 - Create/update your budget
  Step 5 - Define the cost of goals
  Step 6 - Assess your financial situation
  Step 7 - Develop the plan
  Step 8 - Take action
  Step 9 - Get help
Tools
  Net Worth Calculator (CNN Money)
  Net Worth Calculator (Excel)
  Average Net Worth Calculator
  Cost of Spending Calculator (RBC Centura)
  Savings Calculator (Newlywedfinances)
Forms
  Goal Worksheet (Html)
  Goal Worksheet (Excel)
  Net Worth Worksheet
Computing one's expected net worth

(Excerpt from "The Millionaire Next Door")

    Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.

For example, if Mr. Anthony O. Duncan is forty-one years old, makes $143,000 a year, and has investments that return another $12,000, he would multiply $155,000 by forty-one. That equals $6,355,000. Dividing by ten, his net worth should be $635,500.

Given your age and income, how does your net worth match up? Where do you stand along the wealth continuum? If you are in the top quartile for wealth accumulation, you are a PAW,or prodigious accumulator of wealth. If you are in the bottom quartile, you are a UAW, or under accumulator of wealth." Mr. Duncan in the example above is an AAW, or average accumulator of wealth

The authors have developed a simple rule of thumb: if your net worth equals the average calculated by the formula above, you are an AAW, if your net worth is twice the average, you are a PAW, if your net worth is half the average, you are a UAW. Whatever your income, if you want to Retire Early you must be a PAW.

Expected Net Worth Calculator

--------------- User Inputs --------------- --------------- Results ---------------
Age Annual Wage
and Salary Income
Interest
and Dividend Income
Inheritance If your Net Worth is less than If your Net Worth is about equal to If your Net Worth is more than
$ $ $ $ $ $
Instructions: (1) You must enter a number or a zero in each of the 4 input fields. Do not leave any blank input fields. (2) Click on the "Calculate" button. (3) Read the results on the right. you are a
(UAW)
Under Accumulator of Wealth
you are an
(AAW)
Average Accumulator of Wealth
you are a
(PAW)
Prodigious Accumulator of Wealth