Net Worth Goals by Age

By Eddie V. — Published April 16, 2018

Net Worth Goals by Age

If you are anything like most of the people around you, then, no doubt, you must be thinking of ways in which you can ensure that you and your family have a stable future ahead of you financially.

You may be a student, a parent, or just making your first foray into adulthood. Whoever you are and whichever phase of your life you are in, there are certain goals you must set for yourself to achieve the future you have always dreamed of. All it requires is smart, strategic planning and a brief idea about what your net worth should be at every age.

If you are not sure of what we mean by net worth, take a look at what's about to follow.

Net worth for every age is a rough calculation of your financial status at every stage in your life. Be it your 20s, 30a, 40s, and so on. It sums up your cash, assets, shares, and deducts your liabilities.

Setting net worth goals by age is an excellent benchmark and helps you to assess your growth over the years. Here is what your net worth goals should look like at each stage of your life.

The Twenties
Early to mid-twenties is a significant phase for most people. It is during this time that youngsters step out into the world by themselves. You are just starting out which means that your net worth at this stage is likely to be zero which is okay because now is the time to start building your net worth for the future.

Start with enrolling in employer-sponsored retirement plans or IRAs. It is never to early to start planning your retirement. In fact, the earlier you plan, the more funds you will accumulate by the time you retire.

The Thirties
Ten years from when you first started out, it is time to start thinking about saving a significant amount of your income. This is the best time to start calculating the money you need to retire peacefully and save accordingly. Your goal should be to have savings that equal to at least half your current income.

Automate the payments to your retirement account so that you are not tempted to use up the money.

The Forties
Ideally, you should be having a net amount that is close to twice the annual income you made when you were in your late thirties. Since you are inching closer to retirement, it is important to focus on saving some good money. It is also time to start thinking about some up-scale investments such as real estate. Better investment leads to better income during your retirement.

The Fifties
Career-wise, you are likely to reach the peak at this point in life. You will probably be earning the highest you have earned all your life. This is why it is important to have four times the salary that you used to earn in your forties in your savings account at this time. It is also time to start saving zealously. It is important to pay off any loans or mortgage and keep your debt to a minimum as you draw closer to retirement.

The Sixties
As you finally reach closer to your retirement, it is important to have at least six times your annual income in your retirement account. You have reached the height of your professional life and it is time to sit back and relax unless of course, you have more elaborate plans in which case, you may need to find ways to increase your income. But, generally, the sixties is a time when most people start to rely on the income from their retirement accounts.

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