When it comes to personal finance, many people focus on income. But there’s another number that offers a far clearer picture of your financial health: net worth.
Understanding your net worth—and how it compares across age groups—can help you make smarter money decisions and track real progress over time. So let’s break it down.
Understanding Net Worth
At its core, net worth is simple:
Assets – Liabilities = Net Worth
Assets include things like savings, retirement accounts, real estate, and investments. Liabilities are what you owe—think credit card debt, student loans, and mortgages.
Unlike income, net worth gives you a snapshot of your overall financial stability, not just what you earn. That’s why it’s a better long-term measure of financial wellness.
Average Net Worth Benchmarks by Age
Curious where you stand? Here’s a general look at U.S. median and average net worth by age (rounded and simplified):
20s:
Median: ~$8,000
Average: ~$90,000 (skewed by outliers)
30s:
Median: ~$50,000
Average: ~$275,000
40s:
Median: ~$100,000
Average: ~$750,000
50s:
Median: ~$150,000
Average: ~$1.2M
60s+:
Median: ~$225,000
Average: ~$1.8M+
Note: Averages can be heavily skewed by ultra-wealthy households. The median often tells a more realistic story.
Homeownership, retirement savings, and debt play major roles in shaping these numbers, especially as people age.
How to Improve Your Standing
No matter your age or current standing, you can build net worth over time by focusing on a few key moves:
Save consistently (automate if possible)
Pay off high-interest debt
Invest early and often to take advantage of compound growth
Live below your means and prioritize assets that grow or generate income
Even small steps add up, especially when done consistently over decades.
Common Pitfalls to Avoid
It’s easy to fall into the trap of comparison—but remember:
Your location, career path, and family size all affect your net worth trajectory
Some assets (like luxury cars or big homes) may look good on paper but don’t necessarily build wealth
Don’t measure your success based on someone else’s highlight reel—context matters
Tracking and Celebrating Progress
Want to stay motivated? Use tools like:
Budgeting apps with net worth trackers
A simple spreadsheet that logs your progress each quarter or year
Set realistic financial milestones (like hitting $100k in net worth or paying off a specific debt) and celebrate them. Momentum is powerful.
Want More Real-World Financial Tips?
We talk about real numbers, realistic goals, and smarter money strategies every week on the CAPitalize Your Finances podcast. Whether you’re building your first $10k or chasing seven figures, we’ve got tools, insights, and mindset shifts to help you get there.
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