The Average Net Worth by Age
Are you below or above average when it comes to your net worth?
How important is money?
This is a question that everyone will have to answer for themselves.
Nevertheless, I find it interesting to look at statistical averages regarding the wealth of the US population. This is why I looked at the official data published by the fed. Let’s get into it.
What exactly does net worth mean?
Your Net worth is simply the value of all your assets such as real estate, stocks, bank deposits, cash, etc. minus your debts, expressed in a monetary amount.
Networth= assets- liabilities
Let’s look at the numbers
The average net worth of American households is a whopping 748,800 dollars. Pretty high, isn’t it?
But there is a simple explanation for this astronomical sum: the rich.
People like Elon Musk or Warren Buffett, of course, push the average up extremely.
That’s why another figure is more meaningful: the median. This number divides the American population into two halves. If you have the median net worth, exactly half of the people are richer than you, the other half are poorer than you.
This figure is $121,700 for the entire population according to the fed.
Differences between age groups
- Below 35: median $13,900, average $76,300
- 35–44: $91,300/ $436,200
…the average is skyrocketing between these age groups. Looks like most people start to get in rich in their 30s and early 40s.
- 45–54: $168,300/ $ 833,200
…and even richer in their late 40s and early 50s.
- 55–64: $212,500/$1,175,900
- 65–74: $266,400/ $1,217,700
- 75: $254,800/ $977,600
The richest 10% by age
How rich do you have to be to be in the richest10% of your age group? You can find the answer in this article.
And what about the richest 1%? Read this one:
Photo by Serge Kutuzov on Unsplash
How to increase your net worth
The best way to do this is probably to invest. By investing in index funds, you can make an average return of 10% a year in the long run. Especially in times of inflation as of right now, it is crucial to put your money to work instead of letting it melt away in your bank account.
No financial advice though.
This is where I got the data from.
Thanks for reading!
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