As we get older, there are certain milestones that we want to meet to ensure that we are keeping up with others. For instance, when we are in our teens, we want to graduate high school and have our first kiss. When we are in our 20s, we aim to finish college and start our careers and if we’re lucky, buy a house. Then, in the proceeding decades, getting married and starting a family as well as eventually retiring tends to be most people’s goals. Well, one often overlooked metric for progression is our net worth and knowing where you stand financially is key to making the best money decisions possible and as such let’s now get into what your net worth should be by age so you can see how you stack up against others!
Let’s face it, most of us can be rather nosy at times. I’ll be the first to admit that I’ve definitely looked up the net worth of my favorite athletes and movie stars before and chances are you have too. There’s just something about knowing how rich or poor other people are that can trigger a great sense of intrigue within us.
But, have you ever asked yourself why we do this in the first place? Well, I’m no scientist but my guess is that the intrigue to compare our net worth to those around us stems from what is known as the social comparison theory. If you’re unfamiliar, the social comparison theory was first proposed in 1954 by psychologist Leon Festinger and suggested that people have an innate drive to evaluate themselves, often in comparison to others.
This theory likely explains why we seem to be so captured by social media because we are constantly getting that dose of comparison when we open up our phones and see how our peers are faring in life compared to us. However, as you can imagine, there are a few issues that arise when comparing your financial progression to others online which I think is worth briefly discussing.
Net Worth Problems
The first issue is that a lot of what you see online is skewed from reality. For instance, it’s incredibly easy to see a picture of your old high school classmate standing beside a Ferrari and while you may perceive it as being his car, he may have just attended the local car show in his city. Alternatively, you may see others travelling around the world and take that as a…