Comments on: Average Net Worth of an American Family

By: money is bad

money is bad — Fri, 06 Jan 2012 17:47:29 +0000

awesome speech

By: money is bad

money is bad — Fri, 06 Jan 2012 17:46:25 +0000

what is the point of money

By: Anonymous

Anonymous — Thu, 29 Sep 2011 01:58:19 +0000

I think people are complaining about spenders who spend, but can’t afford to spend and wind up spending on credit…

By: Anonymous

Anonymous — Sun, 11 Sep 2011 18:51:18 +0000

Atually, it’s a Camel not an elephant.

By: King_Sol

King_Sol — Tue, 30 Aug 2011 03:47:06 +0000

Lest we all forget and cast stones at spenders, they stimulate the economy enough to allow your fat paychecks or entrepreneurship to be able to save. Frugality is not for everyone, remember to stop by a store near you and thank the spenders for shopping.

Also remember the bible said it is easier for an elephant to pass through the eye of a needle than for a rich man to enter the kingdom of God… This applies to life, you cant take your wealth with you and financial security means nothing to the human spirit.

Live and let live I say!

By: Anonymous

Anonymous — Mon, 29 Aug 2011 08:10:21 +0000

to what you want

By: Ron

Ron — Tue, 26 Jul 2011 03:21:39 +0000

Ben Franklin knew the way to wealth was industry and frugality. Definitely still true.

And the way to happiness – not getting and wanting more and more because you will find yourself miserable with envy. But by eliminating desire so you are never miserable about not having stuff.

By: Dave

Dave — Fri, 15 Jul 2011 12:39:39 +0000

If these are true statistics then there is no reason that with such wealth accumulation people making over 124k a year cant afford another tax hike. I call it the paying for the so called American dream.
Or really the reason why FRB takes this infornmation from you is to find out how much they can bilk tax payers to pay off government bank loans.
I think to eliminate FED Reserve and have the banks eliminated from this country would make it possible for us to balance our books a lot faster then let our government take advice from the bankers that steal from American tax payers. I know thats why they have this information its so they can gage exactly what tax payers will put up with in terms of being taxed. Here is an idea shut off the spicket of cash to bankers and only pay money to our services like military and fed employees and ss and maybe minimal gov services and go on an all cash as you go budget. In the beggining the taxes would be high to pay off debt but after 7 years the taxes would litereally drop to about 80% of what they are now. Our 200 billion dollar budget consists of almost 30 billion in interest alone that generates nothing for the US economy and its people. Get these banksters out of our lives and watch everyone get wealthy from the Middle class up. Imagine how easy it would be if the price of homes was lower and the price of every item was lower and loans didnt exist no interest paid. all would be better off. The debt is a plague to this country that can only be resolved by eliminating its source the banks eliminate the fed and state charters and watch this country get rich. Also stop all outflow of money to foriegn powers abroad and the IMF which is using our tax money to fund bail outs of the bankers making loans to 2nd and 3rd world nations without congressional approval.
Imagine we might actually have money for the more important things in this nation like quality roads and schools and parks. I also believe that congress and senate should get one term since they really arent doing us any good by staying in Washington for 20 years. Do this and maybe we stand a chance to turn around America. Im not saying default on debts I am saying pay it off then get rid of the banks that steal so much wealth from this country and do so little in exchange. Investing with savings is far more powerful then borrowing anyways since it reduces risk.

By: john smith

john smith — Tue, 19 Apr 2011 17:25:25 +0000

Saving is a habit. To many people here in US, it is hard to stay with this habit. For a regular family with 120,000 pretax income, it is easy to spend everything, or save a significant portion of it (such 15% annually). Education, house related monthly payment, day care expense, medical bills, cars, travels, entertainments, dining out a couple times a week, if you add them together, can easily leave you no space for saving.

When people said “saved 10%+”, usually they sacrificed some of above expenditures. For regular Americans, it is hard to save anything. The major savings they have are – their homes. Besides this, government is their only hope (social security, medicare.) And they have to lower their retirement living standard substantially, or continue to work until they die.

The FRB Net Worth number is amazing, and I wonder what are included by this number. 401K balance? (it should be counted after being taxed – that’s probably 25% off), cars, TVs, ? And working median is 350K?

By: wayne

wayne — Tue, 19 Apr 2011 09:54:16 +0000

8 years ago, i had a net worth of, well, basically, zero. i was living paycheck to paycheck, deluding myself into believing that my $100,000 income meant i was doing alright. of course, again, i saved nothing, nor did i really think about the future.

then, at the age of 38, with basically zero net worth, i suddenly woke up. no more credit cards. no more luxury cars (what a waste!), no more shopping at Abercrombie (still wearing now what i bought then and it’s all just fine).

today, my net worth, again from nothing, is $491,500. i’m happy with that but know that i could have done much better if i woke up earlier-in fact, i ignored all the advice around me to save, why i don’t know. anyway,
now saving $90,000 per year and my goal by age 50 is 1 million.

so why am i sharing this? well, maybe some people will realize the need to save, and just how powerful compounded interest rates work in returns (my interest income increases 4k per year and currently is $18,500 annually). as well, i by no means have “made it” but i think i am on the right track to future stability.

wish all you the very same!

wayne

By: senita

senita — Tue, 19 Apr 2011 01:47:25 +0000

Scott, If only all of the young and middle aged couples and singles would read this strategy and of course I feel its never too late to get it right, as long as today is the first day! I absolutely love this posting…

By: Anonymous

Anonymous — Tue, 05 Apr 2011 18:04:14 +0000

The figures shown for net worth are actual the mean rather than the median amounts. Of course the mean is substantially higher than the median as it includes the superwealthy, etc.

By: Brandon

Brandon — Sun, 27 Mar 2011 19:09:27 +0000

Age 25

I own a business…..have for a little over 3 years. I have progressively increased my income and over the past 3 years have averaged about $140k/year. Since I own a business most all of my monthly expenses to live are paid for by the company, thus being able to keep most of my income (minus taxes of course). Before I started my business I worked as a salary employee for 3 years and made an average of $75k/year. I never finished college because I was making good money and inspired to own my own business and not have to answer to anyone.

I have not inherited ANY MONEY AT ALL. I own a home in which I owe exactly what it is worth, I have about $158k in cash, $13k in 401k, no credit card debt and owe $30k on a boat.

I will probably make $250k in income this year and of course most of my monthly bills paid for in addition to that (vehicles, utilities, phones, internet, gas, etc, etc).

I am not sure where I land in terms of NW but I always think I am doing fairly well.

Thoughts?

Brandon

By: Greg

Greg — Mon, 28 Feb 2011 00:52:49 +0000

I (especially) second the 15-year mortgage comments, along with the paying no credit card interest comment. We have done both since age 27 (house was purchased at age 30), and are now debt-free. Being debt-free lowers your monthly expenses quite a bit, gives us more financial flexibility in general, and therefore will allow us to retire sooner if we wish to do so.

By: bill

bill — Thu, 24 Feb 2011 02:20:06 +0000

I’ve got (we have; married) over a million in assets, not counting the house. I expect to live another 20 years; my wife, another 30.

Do I worry about money? All the time.