You shouldn't obsess over your net worth, but it can be a helpful indicator of your overall financial health.
According to the Federal Reserve's most recent Survey of Consumer Finances, Americans' median net worth surged 37% to $192,900 between 2019 and 2022 — the biggest increase since the triennial survey began in 1983.
The median net worth for Americans ages 45 to 54 in 2022 was $247,200. Those are often considered workers' peak earning years, which the survey bore out: had a median net worth of only $135,600.
Net worth across the generations
| 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
How to calculate your net worth
To figure out your net worth, add up your assets — the cash you've got in your bank account, plus investments, retirement funds, property and other valuables.
From that total, subtract any debts — including student loans, credit card bills, mortgage payments and alimony.
How to grow your net worth in your 40s and 50s
When you're on stable financial footing, building wealth gets a little bit easier. You might have more expenses in your 40s and 50s, but your income has (hopefully) increased to match.
Look for opportunities to grow the money you already have. One easy step is switching to a savings account that earns you more, like Marcus by Goldman Sachs High Yield Online Savings or Vio Bank High Yield Online Savings.
Marcus by Goldman Sachs High Yield Online Savings
Annual Percentage Yield (APY)
3.50% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Once you've exhausted the low-hanging fruit, it's time to invest.
A budgeting app like Empower is a great way to keep an eye on how your money is growing in investment vehicles like mutual funds, 401(k)s and IRAs, as well as savings, CDs and other deposit accounts.
Empower
Cost
App is free, but users have option to add investment management services for a fee
Standout features
A budgeting app and investment tool that tracks both your spending and your wealth
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Data encryption, fraud protection and strong user authentication
Terms apply.
You can also add assets and outstanding debts to your dashboard and calculate your current net worth. If you haven't reached your dream number, you can use it as a guideline to keep you motivated.
Net worth FAQs
How much should I have saved for retirement?
A common rule of thumb is to have ten times your annual salary saved by the time you are 67. To reach that goal, experts say you should have a year's salary saved by age 30, three times your salary by age 40, six times by age 50 and eight times your annual salary by age 60.
Does net worth include a 401(k)?
If you have a 401(k), it should be included in your net worth calculations. If you make a withdrawal before age 59 1/2, however, you could face a 10% early withdrawal penalty. That would diminish the value of the account.
How do you calculate net worth?
Your net worth is your total assets (cash, stocks, automobile, house, valuables) minus your total liabilities (credit card bills, mortgage, loans, alimony).
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Information about Marcus by Goldman Sachs High Yield Online Savings has been collected independently by Select and has not been reviewed or provided by the banks prior to publication. Goldman Sachs Bank USA is a Member FDIC.
