I recently read a friend’s facebook status that went something along the lines like:

“Car, Check. House, Check. Happy family, check. But little cash… I suppose this is what the life of a young couple is like.”

That got me thinking. Should a young person’s life really be like that? After all, it’s highly likely that most young people’s life would be like that. After all, most graduates fresh out of school earn something in the range of 2.5K-3K. Those that get married and start a family immediately incur out-of-pocket expenses such as renovation of a new home, care and support of young children etc. This would be on top of wedding and honeymoon expenses (which may or may not be covered by the gifts received) and the likes in the not-too-recent past. Add to that a car (which really adds much more to travel expenses in exchange for time savings and comfort) and it’s no wonder young couples find it hard to save at all.

However, should things really be like that?

I won’t go into posturing whether a car is a necessary or unnecessary expense- most people should be mature enough to know that by buying a car, you are incurring much higher transport expense compared to taking public transport. In exchange, you get comfort (rather than time savings in my opinion).

What I’ll do is link you to this calculator! It calculates your Net Worth and benchmarks it by using a formula that was described in The Millionaire Next Door. The good thing about the formula is that it factors one’s age and current income to get a benchmark Net Worth figure. Anything below that and you have under-accumulated wealth, anything over and you’re a Prodigious Accumulator of Wealth (PAW).

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