Are you a Prodigious or Under Accumulator of Wealth?
I am reading the book "Millionaire Next Door" which had been rec'd by a few podcast guests if I recall.
They discuss the following formula as a guide to what your net worth should be:
Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.
These two terms I really like -
Prodigious accumulator of wealth (PAW) = twice (or more) the level of wealth expected
Under accumulator of wealth (UAW) = half (or less) the level of wealth expected
The expected number as well as the actual can be shared. This can be kept anonymous as you need not share your age or income. Based on whether you fall into the average, under, or prodigious accumulator of wealth category, we can see how we are doing relative to the average. Although, I suspect their may be a bias toward the PAW category for those on BP, but who knows!