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People have wide-ranging views of what it means to be “high net worth,” according to a ការស្ទង់មតិមួយ from digital wealth manager Personal Capital.
Yet most people — 74% — don’t see themselves ever fitting into that category.
When 2,209 adults were asked what they would consider high net worth, the median average among all responses was $400,000.
Meanwhile, 32% of respondents agree with the broadly accepted definition of individual high net worth as having $1 million or more in investable assets.
Only 23% of survey respondents believe they will ever achieve high-net-worth status.
Just 35% of people are confident they know what net worth means, though 91% say they have heard of it.
There’s no time like the present to sit down and say, ‘Where am I at?’
Michelle Brownstein
senior vice president of the Private Client Group at Personal Capital
Knowing your net worth is the first step to getting a good financial plan in place that will help you achieve your financial goals, said Michelle Brownstein, a certified financial planner and senior vice president of the Private Client Group at Personal Capital in San Francisco.
“Having a good bird’s-eye view of your financial situation is such an important exercise,” Brownstein said.
“There’s no time like the present to sit down and say, ‘Where am I at?'” she added.
How to calculate your net worth
Then, subtract all your debts, including credit card balances, student loans and mortgages.