Net worth by age in India: how much at 30, 35 and 40?
Age × yearly income ÷ 10, from The Millionaire Next Door. At 35 on ₹18 lakh CTC, that's ₹63 lakh. See the number at your age, and how to read it.
5 min read
How much net worth should you have at 30, 35 or 40? Salary alone doesn't tell you: two people on the same CTC can be years apart in what they own. A rule from The Millionaire Next Door gives a quick benchmark, and here it is worked out in rupees.
The net worth by age formula
Thomas Stanley and William Danko studied American millionaires in the 1990s and found many lived on ordinary incomes and simply saved. Their test: multiply your age by your pre-tax yearly income and divide by ten.[1] Twice that or more, they called a prodigious accumulator of wealth; under half, an under accumulator.
Net worth at 30, 35, 40 and beyond
| Age | ₹10 L CTC | ₹18 L CTC | ₹30 L CTC |
|---|---|---|---|
| Age 25 | ₹25 L | ₹45 L | ₹75 L |
| Age 30 | ₹30 L | ₹54 L | ₹90 L |
| Age 35 | ₹35 L | ₹63 L | ₹1.1 Cr |
| Age 40 | ₹40 L | ₹72 L | ₹1.2 Cr |
| Age 45 | ₹45 L | ₹81 L | ₹1.4 Cr |
| Age 50 | ₹50 L | ₹90 L | ₹1.5 Cr |
What counts
Net worth is everything you own less everything you owe, as SEBI's investor booklet sets it out.[2]
- Own: bank balances, FDs, EPF, PPF, NPS, mutual funds, shares, gold, and property at today's value.
- Owe: what's left on home, car, personal and education loans, and card dues.
EPF counts: it's yours, even if you can't spend it today.
Reading your result fairly
- Early in a career, it's harsh. At 25 on ₹10 L, it expects ₹25 L, which almost no one has. Watch your own trend year to year instead.
- A long degree or a career break pushes you behind on paper, not in reality.
- A big jump in pay raises the number overnight. Your savings take time to catch up.
The formula is a snapshot. Project your own net worth to retirement with the money you save each month.
What this doesn't mean
- It's not a target to hit by any means. Selling your home to look richer on paper doesn't help.
- Inherited money is left out in the original rule: the test is what you've built.
- It says nothing about cover. A high net worth with no health or term cover can still be wiped out.
Yearly income is CTC; RupeeFrame uses take-home × 12 when there's no CTC. For illustration only.
Sources
- [1]The Millionaire Next Door: expected net worth = age × pre-tax income ÷ 10 (opens in a new tab)Thomas Stanley and William Danko, via Wikipedia · 1996
- [2]Financial Education Booklet, p. 6: assets, liabilities and what you own (opens in a new tab)SEBI and NISM