What net worth do you need to be considered wealthy?

This is a question that troubles almost everyone who’s serious about managing their money:

• Do I have enough savings for my age?

• Am I doing financially well?

  
  

It’s an important question, and thankfully, there’s a simple way to get some clarity.

It’s called the Net Worth Rule.

I found this idea in a popular book called The Millionaire Next Door by Thomas J. Stanley. And it gives you a rough benchmark to evaluate your financial progress.

The formula is quite straightforward:

(Your Age × Annual Income) ÷ 10

That gives you the ideal net worth you should aim for. If your actual net worth is more than this number, you’re doing fine financially.

Let’s take a quick example.

Say you're 30 years old and earn ₹30 lakh per year.

Using the formula:

30 × 30 = 900

900 ÷ 10 = ₹ 90 lakhs

So your ideal net worth should be ₹ 90 lakhs or more.

• Above ₹ 90 lakhs → You’re a Prodigious Accumulator of Wealth (PAW)

• Around ₹ 90 lakhs → You’re an Average Accumulator of Wealth (AAW)

• Below ₹ 90 lakhs → You’re an Under Accumulator of Wealth (UAW)

But hold on, there’s a twist.

This formula was originally designed for developed countries like the US. In India, the income levels and cost of living are very different. That’s why financial planners in India suggest a small tweak.

Divide by 20 instead of 10.

Let’s go back to the same example:

30 × 30 = 900

900 ÷ 20 = ₹ 45 lakhs

So, in the Indian context, if your net worth is ₹ 45 lakhs or more at age 30, you’re in a good place financially. This version of the formula is far more practical and achievable for most Indians.

𝗜𝘁’𝘀 𝗮 𝗴𝘂𝗶𝗱𝗶𝗻𝗴 𝗹𝗶𝗴𝗵𝘁, 𝗻𝗼𝘁 𝗮 𝗴𝗼𝗹𝗱𝗲𝗻 𝗿𝘂𝗹𝗲.

𝘌𝘷𝘦𝘳𝘺𝘰𝘯𝘦’𝘴 𝘫𝘰𝘶𝘳𝘯𝘦𝘺 𝘪𝘴 𝘥𝘪𝘧𝘧𝘦𝘳𝘦𝘯𝘵.

Some start earning early. Some late.

Some carry family responsibilities. Others don't.

Some live in metro cities with high costs, some in smaller towns with simpler needs.

Some studied abroad and carry education loans, others started debt-free.

Some switched careers and took risks, while some chose stability.

Some had a financial head start, some are building from ground zero.

So if you're below the benchmark—it’s okay.

𝗧𝗵𝗶𝘀 𝗶𝘀𝗻’𝘁 𝗮 𝗿𝗮𝗰𝗲. 𝗜𝘁’𝘀 𝗮 𝗿𝗼𝗮𝗱𝗺𝗮𝗽.

𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆 𝗯𝗲𝗮𝘁𝘀 𝗶𝗻𝘁𝗲𝗻𝘀𝗶𝘁𝘆.

Regular investing > occasional windfalls.

Stay on course, and you will catch up.

𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗙𝗿𝗲𝗲𝗱𝗼𝗺 > 𝗙𝗹𝗮𝘀𝗵:

You don’t need ₹100 crore to feel rich.

You need:

• ₹X crore that lets you wake up without dread

• Spend your days on meaningful work

• Sleep knowing your family is secure

  
  

"You won’t spot true wealth on Instagram—because it’s stored in portfolios, not pictures."

(Note: Net worth = assets minus liabilities. But a good part should be liquid and accessible.)