Originally Posted by Bimmerbill
Dang!* I'd love to get a bonus big enough to buy a Harley!*
I gotta find a better paying job!
I'm shocked by the statistics.* $7.5K net worth?!?!* Even after graduation from college and working for $8 an hour I was never that bad off!*
A net worth of $7500 would not be all that unusual, especially in people just starting out in a career. A car with a low down payment and a long loan term will always have a negative net worth. Add student loans, CC debt. and no real assets and you can have a pretty substantial negative net worth. After my divorce I calculated my net worth at that time to be over -$100k and that was with a house equity. I had no cash, no investments and was saddled with the debt (13 CCs worth). Add to that loans on two cars (one was a lease so no value). I was 38 years old. When I graduated from college at age 22 I had no debt and no assets. For that brief period of time I had a net worth of zero. Even a few years later is was not over $5k. By the time I was 30 my NW might have been $10-15k due to house equity.
NW today is far different than what it was 15 years ago when I was in my late 30's. Not bragging here, just trying to put some of the comments here in perspective. You can have a good income but have a low NW; at least until you learn how to save and create ways to increase your NW. If you make $100k/year but have few appreciated assets and high debt you will still have a low NW.
20 years ago a $5000 bonus would have gone to pay some CC debt and to buy part of a new toy or whatever. Now it goes into investments and retirement plans with a few bucks left over for some minor spending on travel or a special gift or two. Big difference in spending patterns today vs then.