Net Worth Appreciation Over Time

The rate of net worth appreciation changes as individuals progress in their financial journey. Early in one's financial life, significant increases can occur due to aggressive savings and market performance, allowing new savers to potentially double their net worth quickly. For instance, someone who starts with a net worth of $20,000 may see it rise to $40,000 in a year, marking a 100% increase. However, as net worth grows, absolute dollar increases become more significant, but the percentage increase diminishes; a $2 million net worth growing by 10% results in a $200,000 increase, showing how appreciation evolves over time.