How Average Is Your Net Worth?

If you have read my articles for a while, you would know I am a big fan of studies that give a perspective of where the average American stands financially. Now, let me be clear: I wouldn’t use these as a basis for a financial plan by any stretch of the imagination. These studies don’t mean people are in a good or bad financial situation. Plus, they include a large contingent that lives below or at the poverty line.

However, why I like these studies is twofold. First, finances are still taboo to talk about. Thus, most people have no sense of where they stand compared to their peers. You see your neighbor, who seemingly has the same income as you, driving nicer cars and going on more vacations. Perhaps they are living above their means. Second, seeing where others stand can serve as a motivator if you are below average. No one likes to be below average — unless we’re talking about our weight — and generally, I like putting these things out there to serve as a litmus test of sorts.