Having a home that is paid off is a big boost to a person's net worth. That certainly helps, but disposable income seems to be what we are actually talking about here. What I have to spend on my pleasures after taking care of bills/necessities is what I divide between my home comforts, car comforts, or a relaxing weekend (it seems that it's been mostly on the cars for the last 4yrs).
Demographics Study - what’s your net worth?
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Not spending every dime is a great start to adding zeros to ones net worth. Compounding interest can take things from there.
Old guys(like me) and maxed out stock market might be skewing the numbers a little bit. I haven’t saved nearly what my retirement funds are worth. I think many people who are “loaded” , and not braggarts, are gun shy about discussing it for any number of reasons- suspicion, jealousy, family/friends expecting “their share”, making people feeling awkward because their situation is less stable or fruitful. My workmates and I mostly have similar situations and frequent discussions about retirement and investing. Some are far better off than me, some less so. I’m happy right where I’m at.
Some guys don’t own anything after the divorce , but have a huge disposable income every month lol
- live for today , tomorrow never comes !
- live for today , tomorrow never comes !
The only thing of real value I have is some equity in our house. Have some equity in our two daily drivers, but still owe on them, personal items, the Malibu is payed off, minus credit card debt 🤣 but our only debt is our mortgage, credit cards which amount to less than 5k, and our two vehicles. So were kind of on the border.
Take away home and 401k/IRA's and that would knock me down a few notches. I and my employers have been contributing for thirty years, hoping/planning on it making for a comfortable retirement starting in about 6-8 years. Looks like we have a pretty broad spread on this subject, just like everything else- geography, car and build costs, shops, etc. I think it helps to keep the GBF lively and interesting.
Well my 401k looks good now but since it is subject to losses, I felt that impacts my final number thus impacting the demographic (have vs. might have).
A 401k is also subject to gains. And if you've been in it for the last year or so, you should have seen quite the gains overall lately. A 401k is considered an asset, thus it should be included in net worth. It's like any asset, subject to market conditions. A G-body worth $4K today, may be worth half that tomorrow. Or twice that next week. Everything is negotiable. And when you start distributions with a 401k, you'll find out quick that the taxes impact your net number!! 🙂
How fast you can liquidate an asset is an entirely different animal altogether.
In general, sit tight with a 401k over the long haul and you shall be rewarded handsomely when you pull the parachute to retirement.
How fast you can liquidate an asset is an entirely different animal altogether.
In general, sit tight with a 401k over the long haul and you shall be rewarded handsomely when you pull the parachute to retirement.
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