“Comparison is the thief of joy.” – Theodore Roosevelt
One of the common searches here on Calculate My Wealth is for wealth percentile calculator. If you aren’t familiar with that concept, wealth percentile is basically the “typical” wealth you might expect based on your age, demographic, location, etc. Most of these calculators are based off of the current census data.
I think you should totally ignore wealth percentile calculators. Here’s why.
1. You’re reading this.
The typical person in those wealth percentiles is not educating themselves and taking action to ensure their financial circumstances are the best possible. If you’re reading this, then changes are your finances will be in better shape than the wealth percentile – especially if you’ve taken our free wealth-building email course! And if you’re reading books and/or have an wealth accountability partner, you’re going to soar past those “typical” percentages.
2. You have unique, individual goals.
My biggest complain with these wealth percentiles is that it assumes that everyone wants to achieve the same things – but that’s not true. Some people want a big mansion, others want to retire quietly in an inexpensive beach cottage. Maybe you don’t want any true assets and just want to be location independent and live out of a suitcase. Happiness isn’t included in the net worth calculation, but that doesn’t mean you should ignore it! Wealth percentiles are strictly based on asset value and income, not happiness, so be sure to choose investing goals that work best for you, not just goals that raise your rankings in a meaningless chart.
3. You’re more than an average.
Last but not least, I’m going to give you a pep talk. You are more than an average. If you want, you can build your investing portfolio and wealth far behind a statistical average. After all, it’s an average – people are above it, and below it. You get to choose where you want to aim. Why not choose to feel good about your investments, to feel empowered about your wealth growing activities, and to know how to make the best choices for you?