We hear a lot about the “one percent” and the “99 percent” but what kind of net worth scores you a top slot in the real-life Hunger Games here in America? How much money do you need to be just average? The answers tell you just about everything you need to know about modern day America.
Short answer: Oh, we’re so screwed.
The Federal Reserve’s 2013 Survey of Consumer Finances released in September of 2014 is among the most recent data. The nice folks who compiled all of this waded through massive amounts of data. They caution they did not include 11 ultra high net worth individuals due to identity issues whatever that means, so the very top of this accounting could actually be even worse in reality. And don’t forget, the super-rich have had two whole years to accumulate even more money since this all was tabulated.
Let’s start at the top. The term “one percent” is now semi-meaningless, though you will need about $8 million to join them anyway. What really matters now is the top .1 percent. To crack that level you need to have well over $30 million in net worth.
But I get it, no one here is packing those kind of bucks. We’re all sort of average Americans, right? Maybe. To count yourself in at the 50 percent mark you need to possess some $82,000. How are we doing, students and young marrieds? Keep in mind net worth is what you own minus what you owe, not necessarily how much money you earn. So those students loans and that VISA card debt count against your ranking here, sorry.
The good news is that if you own nothing, have no savings or investments but also have no debt — you are precisely at zero — you are in the 11.8th percentile of net worths. Yep, that means about 11 percent of us have negative net worths. About a third of us have a net worth of only $15,000, not exactly a significant bumper against some bad luck, like losing your job or getting sick.
It’s a pretty bleak picture, but here it is:
Copyright © 2017. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity. Follow me on Twitter!