Believe it or not, there is an ideal net worth for everyone. This number depends on what kind of life you want to lead. Remember that it’s a bad idea to associate self worth with net worth – or assume that material appearances are an accurate reflection of how much money someone has.
Net Worth Values
There are two ends of the wealth spectrum. One, you can use net worth for a better life. Two, net worth is a gauge to measure yourself against others.
Money for a better life is quiet. For example, your mouth is agape when you find out your next door neighbor is a multimillionaire. They don’t “look” how a millionaire should appear. That’s because there is more individualism with this kind of net worth. However, it’s not healthy to blindly accumulate money for money’s sake.
On the other hand, money to measure yourself against others is loud and performative. Society tells you what you should want – millions of Instagram followers, great love, or first class travel.
Money Identity
You can use money to define what you want and who you are. Using labels such as, “saver” or “deep pockets” influence you.
Collecting money to increase your net worth can be a hobby. Scrutinizing your monthly statements for expenses more than $50 produces a lot of anxiety.
Or you can treat money with a careless panache of an aristocrat, with the idea that it is there to be enjoyed rather than hoarded. “Never scrimp on the luxuries.”
Money Strategy
Copying a net worth strategy that might work for someone else may not work for you. Many people worry if copying someone else’s strategy is appropriate for them.
Some examples are:
- “Sophia is using interest rate tracing to buy her house. Can I do the same?”
- “Can I afford a full time nanny like Derek?”
- “Mikaela loves direct indexing for an investment strategy. What about me?”
When you work with a pro, you get a net worth strategy that works for you. Remember that professional financial planners look at thousands of different financial plans and deal with all sorts of personalities. They are well seasoned and will help you determine your ideal net worth.
It’s Complicated
When it comes to wealth there are so many factors in your conscious and subconscious mind. Don’t expect to untangle it with this 400 word post. But it can be unraveled when you work with a professional over many years and decades.