Two Australian (Mr Thomas Stanley and Mr William Dauko) have worked out a formula to calculate your ideal net worth that can be used as a benchmark for comparison.
Benchmark net worth = (Age X Annual Pretax Income) /10
You have to work out your net worth by using common sense formula
Net worth = Assets (only include those have disposable value) less liabilities (for all debts).
After which, you compare your net worth to Benchmark net worth.
If the difference is positive, your net worth is higher than Benchmark net worth, you are in good position of your wealth. If it is negative, you have to review your financial position and try to reduce your liabilities as much as possible or to improve your income.
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