I just found my old copy of The Millionaire Next Door, a book which found that, contrary to popular belief, most millionaires actively live in modest neighborhoods and drive common cars like the Ford F-150 truck. Flipping through it, I remembered that it also provided a target as 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.

If you don’t have any significant inheritances, this boils down to:

If you are near this target, you are an average accumulator of wealth (AAW).

If you are less than half your target, you are an under-accumulator of wealth (UAW).

If you have more ...