BiggerPockets Money Podcast Average Net Worth by Age (How Do You Compare?)
Dec 3, 2024
Discover how your net worth stacks up against averages for different age groups. The hosts share insights on effective strategies for each demographic to improve financial health. Learn how wealthy individuals invest differently and why you don’t need a high income to achieve millionaire status. With practical tips for calculating net worth, they emphasize the journey to financial freedom involves smart investments, careful spending, and understanding home equity. Plus, get inspired by personal success stories that can guide your financial path!
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Million-Dollar Journeys
- Scott Trench achieved his first million through house hacking, stock market investing, and rapid income growth in a startup.
- Mindy Jensen and her husband reached their first million by live-in flipping, stock market investing, and saving one spouse’s income.
Wealth Composition
- The ultra-rich invest most of their wealth in businesses, real estate, and stocks, unlike the middle class, who primarily invest in their homes.
- This asset allocation difference explains why primary residences can become a "middle-class trap."
Net Worth Calculation
- Calculate your net worth by subtracting liabilities from assets.
- Include home equity but treat your primary residence as an expense when planning for financial independence.