If you follow Lil baby then you know he recently posted a chart revealing what financial class you’re in based on your net worth. Now I’m going to tell you if it actually makes sense or he should’ve kept it to himself. I’ll mainly be focused on the middle-class part of it because that is what received the most controversy.

The average home in the U.S. cost about 300k which means if you own your home your net worth should be between 200-300k. Owning a home is usually viewed as a good long-term investment because they tend to go up in value depending on the condition and area the home is located in. This matters because a home tends to be the biggest purchase most people make in their lives so this will contribute to most of their net worth when they own it. 

The average 401K is about 90k and this may come as a surprise too but they are considered assets. So if you combine your 401k with the 200K from your house you have a total net worth of about 300k. Remember this is on the low in for the average person. 

So if the average household makes about 60-90k a year and let’s say about 10K of that makes it to savings account yearly in 10 years that’ll be another 100k. One thing no one paid attention to was Lil Baby never mentioned any specific age that has to go along with the net worth's on his chart. This matters because just saving money alone in an interest-earning savings account could raise your net worth.

Those are the big 3 things that I feel play the biggest part in getting your net worth to about 400k now to reach that last 100k that will come from your investments over time. The bigger your investments the quicker you’ll reach that 500k point. Now, these are not the only way to do this by any means but these are a way that the average person would reach a net worth of at least 500K without knowing tons about investing.

After really putting some thought into I believe Lil Baby’s chart makes sense but I do feel it’s very unrealistic compared to how people really live which makes it look completely out of touch. I didn’t put cars on the list because most cars tend to lose most of their value when you drive them off the lot so I didn’t want to include them in due to the wide fluctuation of prices, another problem with this would be this all works out in a perfect world where you have no debt. Unfortunately, this is the real world and people have debt but since Lil Baby never specified ages in his chart this is definitely realistic. 

If you enjoyed this type of content leave a comment down below about some other things you would like me to write about.