Net Worth & Wealth Index Tracker
Sum your financial assets and debts to establish your net worth, and check your accumulation rating under the classic Millionaire Next Door expected wealth index.
Assets
Liabilities
Wealth Index Profile
Assets Breakdown
| Asset Category | Amount | Allocation |
|---|---|---|
| Cash & Cash Equivalents | $25,000.00 | 4.8% |
| Taxable Brokerage / Investments | $50,000.00 | 9.6% |
| Retirement Accounts (Pension/401k) | $80,000.00 | 15.4% |
| Real Estate & Property | $350,000.00 | 67.3% |
| Other Assets (Vehicles, Valuables) | $15,000.00 | 2.9% |
Liabilities Breakdown
| Debt Category | Amount | Allocation |
|---|---|---|
| Mortgages & Home Loans | $240,000.00 | 87.9% |
| Student Loans | $25,000.00 | 9.2% |
| Credit Card Debt | $3,000.00 | 1.1% |
| Other Loans & Debts | $5,000.00 | 1.8% |
The Expected Net Worth Formula
Your expected wealth is computed based on your gross income and age. It sets a benchmark for whether you are converting income into wealth effectively:
For example, a 35-year-old earning $95,000 has an expected net worth of $332,500.00. With an actual net worth of $247,000.00, their wealth index is 0.74, placing them in the AAW category.
Frequently asked questions
How is net worth calculated?
Net worth is calculated by adding up the value of everything you own (your assets—cash, investments, home value, vehicles) and subtracting the value of everything you owe (your liabilities—mortgage balance, student loans, credit cards).
What is the expected net worth formula?
Popularized in the book 'The Millionaire Next Door', the expected net worth formula is: Age multiplied by Gross Annual Income, divided by 10. This calculates how much wealth you should have accumulated relative to your income and age.
What do UAW, AAW, and PAW mean?
These represent wealth accumulation categories. UAW is Under Accumulator of Wealth (Wealth Index < 0.5), AAW is Average Accumulator (Wealth Index between 0.5 and 1.99), and PAW is Prodigious Accumulator of Wealth (Wealth Index >= 2.0).