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Most of us are fully aware that our net worth doesn’t remotely come close to that of celebrity billionaires like Oprah Winfrey, Jay-Z or Elon Musk.
But have you ever wondered how yours compares to your peers’? We dug up the average net worth numbers from the Federal Reserve Board’s Survey of Consumer Finances report to help you find out.
What is net worth?
Net worth is what you own minus what you owe. Using a net worth calculator, you can determine yours by deducting the value of all your liabilities (such as credit card debt and student loans) from the value of all your assets (including your home and the money in your retirement accounts)
» RELATED: Liquid net worth: A formula to stop living paycheck to paycheck
Average net worth by age
Net worth totals vary by education, age, income and other factors. We’ll focus on the median and average net worth figures for different age groups:
Age of head of family | Median net worth | Average net worth |
|---|---|---|
Less than 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 |
Curious about where you stand in other areas of your financial life? Learn the average credit score by age.
What is the average American net worth?
So how do we determine the average net worth of Americans? The Federal Reserve Board issues the Survey of Consumer Finances every three years to share information about family incomes, net worth and more. According to the most recent report — released in October 2023 with data collected mainly in 2022 — the overall mean or average net worth of U.S. households is roughly $1.06 million. Seems high, right? That’s because affluent households drive the average up.
Looking at the median, or the midpoint value, is a more accurate representation of the everyday person. The overall median net worth of U.S. households is $192,900. That might help you breathe a little easier.
How to calculate your net worth
Not sure what your number is? Use our net worth calculator to find it.
Net worth calculator
Enter the value of your assets and liabilities to find your net worth.
Assets
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Net worth
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Why is net worth important?
Net worth is one way to check your financial pulse and spot strengths and weaknesses. For instance, you may find you have more assets than you realized or that your debt is pulling down your net worth. However, it isn't a perfect picture. Just because someone has a high net worth doesn’t mean they have a high standard of living. For example, a person’s home may pad their net worth figure, but they can still be cash poor if they don’t plan to sell it and have no savings.
Curiosity about others’ net worth can motivate us to set and pursue financial goals. It can also make us feel unnecessarily inferior. It’s important to remember that net worth isn’t a fixed number. It can change — positively or negatively — with time.
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How to increase your net worth
Still, wanting to boost your number isn’t a bad thing. There are many tactics you can use to build net worth. Start with a few basic steps:
Choose a debt payoff strategy. Create a plan for shedding burdensome liabilities. We recommend paying down debts with the highest interest rates first, an approach known as the debt avalanche. Another option you may consider is debt consolidation: rolling multiple debts into one payment.
Grow your money. Set up automatic savings, take advantage of competitive account interest rates, maximize employer matches and contributions to retirement accounts, and explore other ways to build wealth. Having an investing strategy in place may also help you reach your goals faster.
Increase your income. Sometimes it feels like you don’t have enough money left over to grow your net worth by saving and investing. That may include picking up a few side hustles, negotiating your salary or looking for a higher-paying job.
Be patient. The trend for most people is that net worth increases as they get older. It’s also essential to be as consistent as you can with your savings so that compound interest can do its job in helping your invested money grow. Do your best to get on the right track and allow time for your efforts to pay off.
Keeping track of your net worth
It’s important to keep track of your net worth to ensure you’re on track with your long-term goals. One way to do this is by using the free NerdWallet app to track your net worth, budget, credit score and credit report.
Factors beyond your control can impact your net worth, such as stock market swings and sudden changes in income. The goal should always be to pivot as necessary so that you can get your finances back on track.
