Percentage increase in net worth

[snshijuptr]

Age x .112 x Income = Expected Net Worth

At 25 with a $70,000 combined salary, we're supposed to be at $188,160. Our income multiplier is 2.688. We've only been working 3 years! I think that formula might assume a much older group

[littleroc02us]

If any of you have read "The Millionaire Next Door" it's basically a study that was done on self made Millionaires and DecaMillionaires to try and figure out how they got to be so successfull. His formula was this and it is a reality check to see where you are at.
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.

[MonkeyMama]

At 25 with a $70,000 combined salary, we're supposed to be at $188,160. Our income multiplier is 2.688. We've only been working 3 years! I think that formula might assume a much older group

Exactly. This is why I use my formula. MND forumlas are very linear, and fine when you are older, but not very helpful to the young. (I also find the "income multiplier" useless in that formula. This is only useful if your income is steady or steadily increasing. For many people, that just doesn't happen. Between my spouse deciding to stay home and me taking of months for a couple of maternity leaves, our income has jumped up and down a lot in recent years).