Understanding Wealth and Net Worth in America

What is the approximate net worth required to be in the top 10% of Americans as of 2025?

• $500,000

• $970,900

• $1.06 million

• $2 million

Why is net worth considered a better metric than income for determining wealth?

• Net worth is easier to calculate.

• Income is always higher than net worth.

• Net worth accounts for both assets and liabilities.

• Income does not fluctuate.

What is a common mistake that can prevent people from reaching the top 10% of net worth?

• Tracking expenses

• Succumbing to lifestyle inflation

• Investing in stocks

• Living below your means

What is the recommended maximum percentage of gross monthly income that should be spent on car payments, including insurance and maintenance?

• 5%

• 10%

• 15%

• 20%

What is the impact of missing the best days in the stock market on your investment gains?

• Slight increase

• Gains double

• No impact

• Significant decrease

What is the first step in securing a spot in the top 10% of net worth?

• Buying luxury items

• Taking out loans

• Budgeting and tracking expenses

• Investing in real estate

What is the average savings rate in America, and what should it ideally be to reach the top 10% of wealth?

• 10%; ideally 5%

• 20%; ideally 25%

• 4.9%; ideally 15% or more

• 30%; ideally 35%

How long would it take to reach a net worth of $1.01 million if you save and invest 20% of an $85,000 annual income?

• 22 years

• 15 years

• 30 years

• 10 years

What is the 'gap' in financial terms?

• The interest rate on loans

• The total value of your assets

• The amount of debt you have

• The difference between income and expenses

What is the key to benefiting from compounding in wealth building?

• Making large investments occasionally

• Consistent small investments over time

• Avoiding all investments

• Investing only in high-risk stocks