Millionaire Next Door concepts

[Andrey Y.]

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

I thought it would be fun for us to share the expected number as well as the actual. This can be kept anonymous as you need not share your age or income. Then you can give the actual RELATIVE to the expected, whether you fall into the average, under, or prodigious accumulator of wealth category.

Hopefully, this will give a decent guage on how we are doing, and if any adjustments need to be made.