Your Target Net Worth is your benchmark. Net Worth values are relative, and the meaning can vary depending on your age, your current income, and your lifestyle. Target Net worth is important because it provides a guideline, a kind of “target” value to compare your net worth with, aim for, and/or exceed.
Assumptions behind the Target Net Worth Amount:
- Typically, people graduate from college at the age of 22. At this age, you are basically breaking even, and your net worth will likely be zero. Before age 22, you are typically dependent as a college student, earning little to no income. However, you will begin to earn some substantive amount of money after age 22.
- The recommended savings rate is at least 20% of your income.
- As recommended, it is assumed that you put your savings into a savings account or into investment vehicles that yield returns.
- Most people typically save a percentage of their income every month rather than wait till the end of the year.
To see your Target Net Worth, add your Average Monthly Income from Account Settings, Month, and Year of Birth from the Profile Settings.
Note: Target Net Worth is just a target number aimed to provide guidance. Your specific situation may vary.