Sunday, September 19, 2010

Your worth to me does not depend on your financial wealth.

Just read a news story on yahoo "Americans struggle to regain their shrunken wealth - yahoo finance 19 Sep 2010" That said houshold wealth in America averages only $455, 173.
How are you all doing compared to Average? Well wikipedia has the median figures listed up to 2004. Average is figured by adding up all the wealth and dividing by the number of households. A few million or billion dollar housholds push the average way up. On the other hand the median figures the dollar amount where half the households have less and half the households have more. It doesnt matter if it's one dollar more or a trillion dollars more. In 2004 the median household net worth was just over $93K, The average was just over $448K. So you can see the median is a more realistic number to compare for your household. The wikipedia article breaks it down by various factors such as age, employment, homeownership, race, region, etc. By Age the median houshold wealth is at it's peak between age 54 and 65 at just under $250K. The highest median wealth listed was over $335K for self employed compared to $67K for those working for someone else and $140K for retired. Now if you think just becoming self employed is guarantee of increased wealth better think again. The self employed may also be older, college graduates, and have all the wealth invested in the buisiness without any to spend on good times. I don't have the stats on that but that's my guess.

1 comment:

Lavonda Pflug said...

I love reading your little blog posts. It's not your fault that I start to glaze over when I read about money facts and figures. :) But I perked up at the end when I saw something about self-employment. I've done it. It stinks. May I quote something I read somewhere else a long time ago?

"There's only one thing more overrated than natural childbirth--the joy of owning your own business."

I've given birth 3 times with no pain killers. I've been in business for myself.

I'd rather have a dozen more kids...

Don't know why I'm making this comment....but it is keeping me from washing dishes. lol :)