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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 ($2.8 billion) or Jay-Z ($2.5 billion). And it's been reported that Elon Musk's net worth declined in 2022 by more than the total wealth of Oprah and Jay-Z combined — $100 billion. However, he's still worth over $200 billion.
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.
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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
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.
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.
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How to calculate your net worth
Not sure what your number is? Use our net worth calculator to find it.
Enter the value of your assets and liabilities to find your 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. 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 and explore other ways to build wealth.
Be patient. The trend for most people is that net worth increases as they get older. Do your best to get on the right track and allow time for your efforts to pay off.
The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
This effectively means the top 1% are those with more than $10 million (~25m) and the top 0.1% are those with roughly $1 billion. There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more. I very much doubt that any of them have that amount in savings.
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
One of the most common types of percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it's right for you.
A Subjective Concept. While having a net worth of about $2.2 million is seen as the benchmark for being rich in America, it's essential to remember that wealth is a subjective concept. Healthy financial habits and personal perspectives on money are crucial in defining and achieving wealth.
People with the top 1% of net worth in the U.S. in 2022 had $10,815,000 in net worth. The top 2% had a net worth of $2,472,000. The top 5% had $1,030,000.
Some sources define the upper middle class as anyone making a lot of money but haven't crossed the threshold to become truly wealthy. These individuals often have a net worth of at least $500,000 to $2 million.
According to a 2020 working paper from the Center for Retirement Research at Boston College, the top 1% of retirees-which a retiree with $4 million in assets would fall into-can expect to pay about 22.7% in state and federal taxes.
Assuming an inflation rate of 4% and a conservative after-tax rate of return of 5%, you should aim for a savings target of $1.3 million to fund a 30-year retirement that begins at age 67. This would give you an investment portfolio that produces about $50,000 a year in income.
Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
The 20% rule is a good general guide, but it isn't the right fit for everyone. Some people can save above that rate, while others merely struggle to make ends meet. “Some people pay their rent and they have nothing left.
Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.
In a series of tweets, Ramsey suggested budgeting for food, utilities, shelter and transportation — in that specific order. “I call these budget categories the 'Four Walls. ' Focus on taking care of these FIRST, and in this specific order… especially if you're going through a tough financial season,” the tweet read.
According to CNN Money, the average net worth by age 30, 40, 50, and 60 in 2023 are: $9,000 for ages 25-34. $52,000 for ages 35-44. $100,000 for ages 45-54.
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