Knowing your net worth gives you a clearer picture of your current financial situation, helping you stay on top of any outstanding debts, set mid- and long-range saving goals and plan for a healthy retirement.
Most people's net worth rises with age as their income increases and large debts, such as mortgages and student loans, are paid off. The average net worth for Americans 35 to 44 is $549,600, according to data from the Federal Reserve's 2023 Survey of Consumer Finances, the most recent edition of the triennial report. Averages can be skewed by a few billionaires, however, so median results are considered a more accurate estimate. The median net worth for Americans 35 to 44 is $135,600.
Your individual net worth will differ from both the average and the median, based on your salary, employment status, cost of living and other factors.
Net worth across the generations
Here is a list of the median and average net worth in the U.S. by age.
| Age of head of household | Median net worth | Average net worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: Federal Reserve Survey of Consumer Finances, 2022
What is net worth?
Your net worth is the sum of your assets minus any liabilities. This can include:
Assets
- Liquid assets (cash) in checking, savings and money market accounts
- CDs, savings bonds and Treasury bonds
- Investments (stocks, ETFs, crypto, etc.)
- 401(k), IRAs and other retirement accounts
- Health savings accounts and 529 college savings plans
- Cash value life insurance and annuities with equity
- Vehicles, real estate and other physical assets
- Business equity
Liabilities
- Mortgage
- Home equity loan, HELOC, reverse mortgage or other second mortgages
- Credit card balances
- Auto loans, student loans and any other installment loans
You can calculate your net worth by plugging your assets and liabilities into a budgeting app like YNAB (You Need a Budget) or Goodbudget.
You Need a Budget (YNAB)
Cost
34-day free trial then $109 per year ($9.08 per month) or $14.99 per month (college students who provide proof of enrollment get 12 months free)
Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the "zero-based budgeting system" where no dollar is unaccounted for). Every dollar is assigned a "job," whether it's to go toward bills, savings, investments, etc.
Categorizes your expenses
No
Links to accounts
Yes, bank and credit cards
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Encrypted data, accredited data centers, third-party audits and more
Terms apply.
Goodbudget
Cost
Free for 20 total envelopes; $8/month (or $70/year) for unlimited envelopes
Standout features
Allows users to plan their household's spending using the "envelope method," where they allocate a certain amount of their income into categories like groceries, rent and debt payoff. Users are only supposed spend what's in their envelopes and if they go beyond their budget the envelope will show red to indicate that they overspent
Categorizes your expenses
Yes, but users can customize
Links to accounts
No, users manually create "envelopes" and input their transactions
Availability
Has a web-based version, and also offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
256-bit bank grade encryption in a data center
Terms apply.
How do you build net worth?
You can increase your net worth by upping your income and savings, reducing your debt load or some combination of the two. In your 30s and early 40s, your peak earning years are still a few years off (generally between 45 and 54), but you can grow your net worth by prioritizing earning, saving, repaying debts and investing over spending.
It's common to have substantial debts at this stage of life, like mortgages and car loans. But be careful to avoid "lifestyle creep," or spending more simply because you have more to spend. Even smaller debts can delay your ability to accumulate wealth. If you have more liabilities than assets, your net worth can dip into the negative.
Another way to build wealth is to stow cash in a high-yield savings account rather than a traditional one. A HYSA can earn more than 10 times the interest.
A common rule of thumb is to have 10 times your income saved by age 67. Working back from that, you want to follow this path:
- By age 30: You should have saved the equivalent of one year's salary
- By age 40: three times your annual salary
- By age 50: six times your annual salary
- By age 60: eight times your annual salary
- By age 67: You should have the equivalent of ten times your annual salary saved.
Net worth FAQs
How do you calculate net worth?
Your net worth is your total assets minus any liabilities. To calculate your net worth, tally up your liquid and physical assets and savings — including investments, property, automobiles and retirement funds. Then subtract outstanding debts, including your mortgage, medical bills, car payments or student loans.
What is a good net worth?
The definition of a good net worth is different depending on your lifestyle, location, obligations and other factors. For many, the ultimate value of a net worth is to ensure they enjoy the same quality of life in retirement that they did in their working years.
The real median net worth in 2022, the last time the Fed released its Survey for Consumer Finances, was $192,900. The next survey is slated for release in late 2026,
How much should I save for retirement?
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