Achieving wealth is a competitive journey that requires hard work rather than comparing yourself to others. To be considered "rich," a practical definition is having a net worth that is 20% higher than the average for your specific age group. Here is a breakdown of the financial targets and milestones to aim for at every stage of life:Ages 18 to 24 To be considered rich in this bracket, aim for a net worth of at least $34,448. This stage is rated a 3 out of 5 in difficulty and is all about building a solid financial foundation.

• Create an emergency fund covering three to six months of expenses to handle unexpected surprises.
• Avoid bad debt, though some student loans may be necessary depending on your career path.
• Build a credit score by using a credit card responsibly and paying the balance in full each month.
• Invest in your "human capital" by developing valuable skills and knowledge to increase your earning potential.
• Open a brokerage account and begin learning about the stock market.

Ages 25 to 29 The target net worth increases to $59,265 or more. This is considered the most difficult phase (rated 5 out of 5), requiring a strong focus on increasing income rather than just saving, as well as taking calculated risks.

• Save one year's worth of expenses in accessible, liquid assets.
• Pay off any student loans and completely clear any bad debt.
• Achieve a credit score of 750 or higher to secure favorable terms on future loans.
• Focus on making good money through a high-paying job, side hustle, or business.
• Invest 10% to 15% of your income into an area you understand well, taking advantage of your youth to tolerate higher risks.
• Become completely financially independent from your parents.

Ages 30 to 39 Aim for a net worth of at least $238,087. This period focuses on managing your growing wealth while navigating life changes, such as marriage and having children.

• Accumulate four years' worth of expenses in liquid investments.
• Consider purchasing a personal home so you no longer have to pay rent, while also building equity.
• Maximize contributions to tax-free savings accounts to protect your money as you enter higher earning brackets.
• Invest 20% of your income, and begin diversifying your portfolio to lower your risk profile, especially if you have a family.

Ages 40 to 49 These are typically your peak earning years, and your earlier investments should be paying off nicely. The target net worth is $831,116 or more.

• Save at least 10 years' worth of expenses in liquid investments to ensure you can maintain your lifestyle in retirement.
• Fully pay off the mortgage on your personal residence.
• Increase your investment rate to 30% of your income to accelerate progress toward your retirement goals.
• If you own a business, plan an exit strategy or hire a new CEO to manage it while you still have time for the resulting funds to grow before retirement.

Ages 50 and Beyond At this stage, your target net worth is $1,237,884 or more. The hard work is largely complete, and your investments should be doing the heavy lifting.

• Secure at least 25 years' worth of expenses in liquid assets so that retirement is a breeze.
• Clear all remaining debt to reduce monthly expenses and free up cash flow for hobbies and travel.
• Establish a will to dictate exactly what happens to the money and property you have built.
• Obtain life insurance, particularly if you are the primary earner, to ensure your family is protected.

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