Everybody should have a net worth target to shoot for by age, work experience, and income. Targets will help you stick to your financial plan and motivate you to do more if you’re falling behind. I’ve updated my net worth target chart for 2016 and I’d like to discuss the premise behind the numbers.
These target figures are for those who:
- Take action rather than complain about an unfair system
- Max out their 401k and IRA every year
- Save an additional 20% or more after taxes and 401k/IRA contribution
- Take calculated risks through investments in various asset classes
- Build multiple streams of active and passive income
- Focus on the big picture and doesn’t nit pick with minutiae