Average Net Worth By Age

Average Net Worth By Age

Thanks to the internet and social media, most people know the net worth of wealthy individuals worldwide. Unfortunately, for most people, their net worth does not compare to these multi-millionaires, and it would be a futile attempt to compare it. However, it is possible to compare yourself to your peers.

The average net worth by age in America is $76,300 under 35, $436,200 for ages 35 to 44, and $833,200 – $1,175,900 for the 45 to 64 bracket. It peaks between 65 and 74 years at $1,217,700, before reducing slightly to $997,800 for those 75 and over. Generally, it increases with education. 

The variables that affect a person’s average net worth are not consistent and affect individuals differently. Therefore, there is no single figure that can answer this question without taking into account individual experiences. This article looks at the average net worth numbers and helps you find out how you compare with your peers.

Average Net Worth in the USA

Net worth totals differ according to various factors: 

  • Age
  • Educational background
  • Race 
  • Income 
  • Gender
  • Other

Therefore, it is impossible to give a fixed number to represent the average net worth of all Americans. Business Insider recommends using the median net worth to get an accurate picture.

The median is the value that lies in the middle of a set of numbers, with half of the values above it and half below it. The median is not as easily influenced by outliers or extreme values as the mean.

According to the Survey of Consumer Finances, conducted every three years by the Federal Reserve, the median net worth of American families was $121,700 in 2019. This is an increase from $103,500 in 2016.

So, what is the average net worth by age for Americans? Well, the median net worth of an average American picks up as soon as they turn 35 years ($13,900). It rises sevenfold for Americans between 35 and 44 years ($91,300) and further increases to $168,600 for those between 45 and 54 years. It then grows steadily until it reaches $212,500 for those between 55 and 64 years.

Americans aged 65 and 74 have the highest median net worth of $266,400. However, as soon as they turn 75 and start depleting their retirement savings, their net worth begins to dwindle.  

What Is Net Worth?

Net worth measures a person or company’s value by placing their assets and liabilities side by side and calculating the difference. Net worth can also be defined as the amount by which a person’s assets exceed their liabilities. It applies to people, companies, and even countries.

Average Net Worth By Age

Assets are anything owned with a monetary value, while liabilities are obligations that deplete available resources such as debt. An individual’s net worth can either be described as positive or negative. The latter refers to a scenario where the liabilities exceed the assets, while the former occurs when the assets exceed liabilities.

Determining your net worth is essential since it gives a brief overview of your financial position and can be used to predict economic trends. It can also help you plan your future and make critical decisions to reduce liabilities and increase assets based on accurate information.

How to Calculate and Track Net Worth

You can calculate your net worth easily if you have all the available information about your assets and liabilities. All you need to do is subtract the value of your liabilities from your investments. This difference will either result in a positive or negative net worth. 

Using this information, you can track and update your net worth with every new asset purchased or liability acquired.

Knowing your net worth is crucial. In addition to being a requirement for most bankers while evaluating your loan application, it can help you keep on track with your goals. Many wrongly assume that net worth is only for wealthy individuals and businesspeople. This couldn’t be further from the truth, and this article will demonstrate the reasons for this.

How To Calculate Your Simple Net Worth

Your simple net worth is the calculation of your assets minus your liabilities. The number is important because it gives you a quick way to measure your financial health and progress towards financial independence.

Here’s how to calculate your simple net worth in three straightforward steps:

1. Make a List of All Your Assets

Assets include anything that could be sold for cash, including investments, real estate, and personal property. In addition to your primary residence, if you’re a real estate owner, don’t forget to list any other real estate that you own, such as rental properties or vacation homes.

Here are a few tips for valuing your assets:

  • Investments: Include the current value of all investments, such as stocks, bonds, and mutual funds. For investments that don’t have a readily available value, such as private business interests or real estate partnerships, use your best estimate.
  • Retirement accounts: Include the current value of all retirement accounts, such as 401(k)s, 403(b)s, IRAs, and pensions.
  • Personal property: Include the estimated value of any personal property that could be sold for cash, such as jewelry, art, collectibles, and vehicles.
  • Real estate: Include the current market value of your primary residence and any other real estate that you own, such as rental properties and vacation homes.

Once you have a list of all your assets, add up the total value to get your total assets.

2. Make a List of All Your Liabilities

Liabilities are anything that you owe money on, including credit cards, mortgages, student loans, car loans, and any other debt.

Here are a few tips for valuing your liabilities:

  • Credit cards: Include the current balance of all your credit cards.
  • Mortgages: Include the current balance of all mortgages.
  • Student loans: Include the current balance of all student loans.
  • Car loans: Include the current balance of all car loans.
  • Other debt: Include the current balance of any other debt, such as personal loans and medical bills.

Once you have a list of all your liabilities, add up the total to get your total liabilities.

3. Subtract Total Liabilities from Total Assets

To calculate your net worth, simply subtract your total liabilities from your total assets.

For example, let’s say you have the following assets and liabilities:


  • Home: $300,000
  • Investments: $50,000
  • Retirement accounts: $100,000
  • Personal property: $10,000
  • Total assets: $460,000


  • Credit cards: $5,000
  • Mortgages: $100,000
  • Student loans: $50,000
  • Car loans: $15,000
  • Other debt: $10,000
  • Total liabilities: $180,000

In this example, your simple net worth would be $460,000 – $180,000, or $280,000.

How To Calculate Your Tangible Net Worth

To determine your tangible net worth, minus your liabilities from your assets, excluding any intangible assets. Intangible assets are things like patents and copyrights, which can have value but can’t be quickly sold for cash.

To calculate your tangible net worth, find the difference between your total liabilities and total assets, excluding any intangible assets.

For example, let’s say you have the following assets and liabilities:


  • Home: $300,000
  • Investments: $50,000
  • Retirement accounts: $100,000
  • Personal property: $10,000
  • Patents: $20,000
  • Total assets: $480,000


  • Credit cards: $5,000
  • Mortgages: $100,000
  • Student loans: $50,000
  • Car loans: $15,000
  • Other debt: $10,000
  • Total liabilities: $180,000

In this example, your tangible net worth would be $480,000 – $180,000 – $20,000, or $280,000.

Tracking Your Net Worth

Tracking your net worth is the best way to keep yourself fully aware of your financial situation. It is one of the most effective financial tools individuals, professionals, and businesses use to monitor their finances.

Unlike your salary or income, it represents the total of your entire financial life, reduced to a few numbers. It shows you all the assets and liabilities accumulated over your lifetime. There are different ways of tracking your net worth, and the method you use depends on the value of your assets and liabilities and what tools one should use. 

1. Simple Net Worth Tracking

The simplest way of tracking your net worth is by writing a list of your assets and another of your liabilities and placing them side by side. Once you buy or sell an asset, make appropriate adjustments to the list of assets, and the same applies when you add or reduce liability. You will end up with an updated list that you can use to calculate your net worth at any time.

For financial monitoring, you don’t need to include all your assets since some have no fixed value and depreciate over time. It is advisable to include the cash you currently have in cash or in the bank and the loans owed. 

Other assets such as salaries and expected income from other sources are also included in simple net worth tracking. Many people also have short-term liabilities such as bank loans, taxes, and bills. 

2. Advanced Net Worth Tracking

High-net-worth individuals often have many assets and liabilities to their name, and the simple method of tracking their net worth does not apply to them. These individuals may require tools such as Mint and Personal Capital to keep up to date with their net worth. There are more straightforward tools like Google and Microsoft Spreadsheets that work as well.

These individuals have a diversified portfolio and have assets in various industries such as real estate, banking, and other markets that require specialized knowledge. These individuals and companies include their entire net worth, including intangible possessions. They often undervalue their assets in real estate and virtual platforms to get an accurate estimation after adjustments.

How to Fix It If you are Behind the Average

The national average net worth by age is calculated after collecting all the available data on the number of assets and liabilities Americans have. The resulting figure is not an indicator of good financial health but can be used to calculate progress. If you are left too behind by your peers, it could lead to various financial problems in the future.

Correcting course and being at par with your peers is possible if you are behind the national average. Various options work with almost everyone and can accelerate your journey to financial stability.

It is noteworthy that it is easier to attain some financial parity in your 40s and 50 since you have access to high income and can make strategic investments to increase your assets. 

The following tactics shall come in handy if you are building your net worth or recovering from financial woes that have negatively affected your bottom line:

1. Pay off Your Debts Strategically

It is essential to pay off your debts. However, paying some debts can negatively affect your overall net worth. Therefore, it is advisable to make strategic payments that can ensure your liquidity is guaranteed and consistent.

You can create a plan that prioritizes your debts from the most expensive to the least expensive. Make sure you include all the debts in your plan, including credit card debts, student loans, car loans, and mortgages.

The goal is to focus on high-interest debts first while keeping up with minimum payments on other debts. Once you pay off a debt, use the amount you were paying towards it to focus on the next one in line until all your debts are cleared.

2. Grow Your Money

Getting money now and then is different from growing your money. You can use your available cash to generate more wealth instead of allowing it to lie idly in a current account. Choose strategic accounts that have competitive rates which can build your wealth. Some automatic saving accounts can accumulate high-interest rates earning you a little more cash.  

While savings generate income and guarantee financial security, experts advise investing the money instead. Acquiring assets like property and land can increase your wealth once they appreciate in value. Other investment vehicles such as mutual funds, index funds (401k), and IRAs can keep your net worth ahead of your peers.

3. Increase your Income

Another way of building your net worth is by increasing your sources of income. You do not have to do one job to earn a living. With advancements on the internet, it is possible to learn new skills to boost your income. 

These skills can help you profile a side hustle that can pay off debts and bills and help you save and invest for future projects.

4. Be Patient

Lastly, take your time when making investments or anticipating returns. Some investment strategies take longer than others to mature, and it would be unwise to expect instant results after investing in the real estate industry or stock. 

You should also know your investment portfolio and the expected timelines that one would expect a return on their investments.


Calculating your net worth is a significant undertaking that can help you plan your future. It is not limited to companies and wealthy individuals; even small income earners can benefit from this information. There are various ways of tracking your net worth and ensuring you are on track to meeting your financial goals.

You may not achieve the same net worth as your peers, but you can focus on building a solid foundation for future wealth creation. Use the tips provided to create a plan that can help you attain financial stability and improve your net worth.

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