What is net worth?
Net worth is everything you own minus everything you owe. Add up cash, investments, retirement accounts, the value of your home and vehicles, then subtract your mortgage, car loans, student loans, credit cards and other debts. Use what things would sell for today, not what you paid.
How do you compare?
According to the Federal Reserve's 2022 Survey of Consumer Finances, median net worth was about $39,000 for families under 35, $135,600 for ages 35–44, $247,200 for 45–54, $364,500 for 55–64, $409,900 for 65–74 and $335,600 for 75 and older. The median means half of families had more and half had less.
How to grow your net worth
- Pay down high-interest debt, which raises net worth dollar for dollar.
- Save and invest automatically, especially in retirement accounts with an employer match.
- Avoid borrowing for things that lose value quickly.
- Track your net worth once or twice a year to see your progress.
Frequently asked questions
Is a negative net worth bad?
It is common early in life, especially with student loans. What matters most is that it moves upward over time.
Should I include my home?
Yes, include the home's market value as an asset and the mortgage as a debt. Some people also track net worth without the home to see their liquid savings.
What is the debt-to-asset ratio?
Total debts divided by total assets. Lower is safer; a falling ratio means you are building equity.