When you're just starting out, it's not unusual to have little to your name. As you grow in your career, your net worth will likely grow, too.
According to the Federal Reserve's most recent Survey of Consumer Finances, in 2022, Americans under 35 had a median net worth of $39,000. That's a massive 143% increase from 2019, when the median net worth was just $16,100.
Overall, median net worth in the U.S. rose 37% to $192,900, the biggest jump since the triennial survey began in 1983.
Net worth 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
- Cash in checking, savings and money market accounts
- CDs, savings bonds and Treasury bonds
- Stocks, ETFs, crypto and other investments
- 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 and other second mortgages
- Credit card balances
- Auto loans, student loans and 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 to build net worth in your 20s
Your net worth is constantly changing as you borrow, save, invest and repay money. In your 20s, you may not have taken on some of life's biggest liabilities, like a mortgage or a child's college tuitioin, but your salary is also going to be smaller.
To grow your net worth, you'll need to make saving and investing a priority. Think about how much you want to have accumulated in the future and break that down into smaller increments you can afford today.
Take advantage of compound interest by putting funds into CDs and high-yield savings accounts (HYSAs). Saving just 15% of your paychecks every month can help you earn up to ten times your income by retirement age.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
From 3.75% to 4.15% APY
From 1 year to 5 years
Bread Savings™ (formerly Comenity Direct) is a product of Comenity Capital Bank, a Member FDIC.
From 3.85% to 4.05% APY
From 6 months to 6 years
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
Real estate is another popular way to build net worth. While renting offers flexibility, homeowners build equity, which grows their net worth.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
10–30 years
620
5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan
10, 15 or 30 years for fixed-term conventional loans, 30-year VA and FHA loans. Custom mortgages with fixed-rate terms from 8 to 29 years.
620 for conventional, 500 for FHA
0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo
Experts suggest having 10 times your income saved by age 67, the full retirement age for most Americans. Working backward from that, you would follow this path:
- By age 30: One times your annual 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: Ten times your annual salary
Net worth FAQs
How do you calculate your 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.
Which is more important, income or net worth?
Both are important aspects of your financial health, but your income may not reflect your true economic situation. If you earn $150,000 but spend almost all of it each month, you're in the same paycheck-to-paycheck cycle as someone who earns $75,000.
What is a good net worth?
There is no one "good" net worth. In 2022, the median net worth of an adult under 35 was $35,000, but your goal will vary based on your age, location, lifestyle, number of dependents and other factors.
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