population controls just 3 percent of global wealth! compare that to the eight wealthiest

people who's wealth combined equals to the bottom 47 percent of the population of the

entire planet.

Despite what you might have heard, The top 1 percent isn't as wealthy as it might seem,

you only need to have a net worth of 770 thousand dollars, and you can consider yourself the

1 percent. That's definitely a lot of money, but it's

not even a million. With that kind of net worth, you cant get your self a yacht or also

fly privet. The median house price in California costs almost 600K dollars ($615K). So, every

house owner in california can consider him or her self the top 1 percent.

Those who are buying these mega yachts and flying privet jets are the ones who are at

the top of that one percent - the billionaire club.

As of 2018, there are over 2,200 U.S. dollar billionaires worldwide, with a combined wealth of over US$9.1 trillion.

That is more than the GDP of entire nations of some of the most advanced countries on

earth, such as Japan, Germany or the United Kingdom.

And what's scarier is that the amount of wealth billionaires control has only been

growing. Just in the year 2000, their combined net worth was below 1 trillion dollars; 3

years ago, it was 7.67 trillion dollars, and a year later (2018), it's over 9 trillion

dollars. What we want to explore in this video is where

you stand in this spectrum, or I shall say, where you suppose to stand.

Are you too poor for your age, or maybe you are ahead of everyone else?

If you are lest say not a very good financial position, you can always change that because

it's there right in your hands.

Whether you're fresh out of school, well into your career, or forging your path through

life, it's never too late to start saving or to check to see that you're heading in

the right direction.

Calculating your net worth isn't really difficult. It's much easier than you think.

Take a piece of paper, draw a line in the middle of it. On one side,

You have to Add up the total value of your assets. This includes the current market value

of your investment accounts if you have one of course, retirement savings, homes, cars,

trucks, valuable things like jewelry, and the cash value of your checking, savings accounts.

and thats all of your assets.

On the other side, write down your liabilities. This includes your mortgage, car loan, student

loan, personal loans, credit card debt, 500 bucks you owe to your buddy, and any other

form of debt you might owe.

and now finally, Subtract your liabilities from your assets.

The total cost is considered your personal net worth. Your total could result in a positive

net worth or a negative net worth. If you're in the negative net worth category, don't

be afraid, its alright. It's typical for people who are early in their careers to have

a low or negative net worth if they have student loans, or are new homeowners, or are just

starting to save for the future.

If you are in your 20s and have zero in savings, congrats are doing not bad.

I am not kidding, its fine not to have any savings at this point of your life. Let's

face it. If you are in college and have a student debt, your part-time job would hardly

cover your bills, leave alone paying your debts.

So, do not worry; most 20-year-olds have a negative net worth.

However, that doesn't mean you should not budget and make smart financial decisions

because often it's only later in your life; you will realize the consequences of your

financial decisions.

If you are smart enough to start investing even as little as 5 to 10 percent of your

income in your 20s, you are going to be well above the average in less than a decade.

When you approach your thirties, and you want to be doing at least good enough, you should

have at least saved six months of your income as an emergency fund. If we take the average

household income, then that's almost 31K (30698 USD).

But if you want to be better than your average boy, then you should have at least a year

of your income saved in your account. Emergencies happen, sometimes they even lead to bankruptcies.

Hundreds of thousands of people file for bankruptcy due to unexpected healthcare bills.

So be mindful. When it comes to your net worth, according

to the FED, the average net worth for families in the U.S. under the age of 35 as of 2016

was $76,200. But this number isn't accurate because a small percentage of wealthy Americans

skewed it; that's why the median is much lower at $11,100. That's not hard to achieve.

The reason that this number is so low that even though average adults might have assets

like a house and a car, their student loans, and a mortgage would overshadow them.

So don't worry, as you begin to cover your student loan and your mortgage, your net worth

would quickly build up.

As you start hitting your 40s, ideally you should have saved at least three times your

income, if you are earning 100K, then your number is 300K, but that's quite unrealistic

for most people. In fact, according to the FED, the median

income of 40-year-olds is a little below 60K (59800).

Usually, people have families and lots of bills to cover at this stage of their lives,

so it's wise to be better than the average if you don't want to be struggling financially.

Taking care of an entire family isn't easy, especially when your children begin to grow.

As you approach your 50s, your net worth should be significantly higher because you are also

getting closer to your retirement age, and if you want to have a good retirement, you

have to prepare for it. The median net worth of 50-year-olds is $124,200.

But keep in mind that, its the median, the average is $727,500, which is much much higher.

And your savings should be five times your annual income.

It might seem unrealistic to reach these numbers, but to be practical, even saving a small portion

of your income over 30 years is enough. And if you decide to invest, it's easily going

to add up due to the power of compounding.  Keep in mind that you don't necessarily have

to follow these numbers. You can work a little harder and retire in your 30s. Possibilities

are beyond what you imagine.

All my childhood, I wondered why on earth some people are rich while others are poor.

My parents kept telling me that it all has to with school. Study hard, get good grades,

and one day you are going to have everything you ever wanted.

I did not understand that logic then, and I still don't understand it today. The school

was boring. I tried to study but never had the inspiration to get high grades.

However, today, things are different. The road to building wealth is clear, like never

before. Even if you do not have access to learn directly

from the wealthiest people or you are lazy to read the books, everything is clean and

clear on the internet. You have it there!

Money alone isn't going to make you wealthy. Your dollars are going to lose their value

year after year. True wealth hides in obtaining assets that continuously pay back. And with

the power of compounding, you are only going to get wealthier.

7% on a thousand dollars might not be much, I mean making 70 dollars a year from your

investments isnt alot. But 7 percent on 10 million dollars is 700

thousand dollars. The amount of wealth that would put you in the top 1 percent.

Its extremely difficult to build the foundation to your wealth, but once you do it, it accumulates

by itself. Most people find it difficult to deny themselves

the short term pleasures for the sake of long term wealth.

You might have to live on an extremely tight budget, even if you are making six figures.

As of 2018, the average median household income in the United States is a little over 61 thousand

dollars.

The stock market has proved itself to guarantee 10% returns in the long run, which means,

with an investment of little over 600 thousand dollars, you can ensure yourself that average

household income without working another day in your life.

Of course, that's just in theory because, as humans, we have to work to give some meaning

to our lives, but you get the idea. Nobody has an excuse for not understanding

how to build wealth. The key is to start as early as possible to

take advantage of the power of compounding.  If you are in your 20s, it might be silly

to overthink about your 40s and 50s, but the fact is, think about how fast last year has

passed. How about the last decade Imagine if you started back in 2010, how wealthy

you would be today. It's pointless to regret over the past because

time can never be reversed, but what you can do is to make a different decision today.

I hope you guys have enjoyed this video. Make sure you give it a thumbs up and hit that

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Thanks for watching and until next time.