Your SlideShare is downloading. ×
The Millionaire Next Door "Wealth Test" Handout
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Millionaire Next Door "Wealth Test" Handout

306

Published on

Short 6-step calculation to assess net worth adequacy

Short 6-step calculation to assess net worth adequacy

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
306
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The Millionaire Next Door “Wealth Test” Your net worth (assets minus debts) 1. ________________ Your annual household income (from all sources including realized capital gains, but excluding income from inherited wealth) 2. ________________ Your age (if both spouse work, average your ages) 3. ________________ Multiply your income by your age 4. ________________ Divide line 4 by the number 10 to get the expected net worth for someone with your age and income 5. ________________ Divide your net worth (line 1 by line 5) to get your final score 6. ________________ Interpretation of your Score 2.0 or higher, you rank in the top 25% of wealth builders and are one of Stanley and Danko’s PAWs (prodigious accumulators of wealth) 1 to 1.99, you rank in the top half of Americans in your wealth building prowess. 0.51 to 0.99, you’re a below average generator of wealth for your age and income level. 0.50 or lower, you are one of Stanley and Danko’s UAWs (under accumulators of wealth) Adapted from http://www.bauer.uh.edu/drude/Net.Worth.Worksheet.pdf.

×