We have reached another big milestone: $250,000 in net worth. As I told my wife, this milestone means that we already know how to walk 1/4 of the way there. All we have to do is to continue what we have been doing throughout these years and eventually we will get to that seven figures and to be financially independent. Just save, persevere, and enjoy life as it goes by!
Also, our net worth has been increasing without any major setback. I mentioned it before as I think there will a time where our net worth would drop, perhaps due to sickness or job loss. Anyway, the reason that the net worth increases at a fairly constant rate is because the income from our W2 dictates the trajectory more than the return on our investment. That should change once the investment accounts have grown substantially. I look forward to the day when our retirement accounts are larger than our biggest asset, the house value.
According to the Federal Reserve report, released in June 2012, the median net worth of all households is $77,300. It is a big drop comparing to 2007 when the median net worth was $126,400.
The Pew Research Center report is using a different data set by looking at census data. They found that the median net worth of someone younger than 35 dropped from $11,521 to $3,662 while the median net worth of someone 65 and older jumped from $120,457 to $170,494. Here’s the result:
|Age||Median Net Worth|
The Cars’ Value is derived from the two following data points:
Toyota Camry: $10,925 (Lowest estimate from KKB raning from $13,275 to $10,925)
Toyota FJ Cruiser: $24,111 (Same as loan balance from auto refinance)