What Is Net Worth?

Net worth is simply: Assets - Liabilities = Net Worth. It's the most important number in personal finance because it captures your complete financial picture in one figure. A growing net worth means you're building wealth.

Average Net Worth by Age

  • Under 35: Median ~$39,000
  • 35-44: Median ~$135,000
  • 45-54: Median ~$247,000
  • 55-64: Median ~$364,000
  • 65-74: Median ~$409,000

Source: Federal Reserve Survey of Consumer Finances. Don't compare yourself to averages — focus on growing your own net worth consistently.

How to Increase Your Net Worth

  • Pay off high-interest debt first – Credit cards are the #1 net worth killer
  • Maximize retirement contributions – 401k match is free money
  • Build an emergency fund – 3-6 months of expenses in savings
  • Invest consistently – Dollar-cost averaging into index funds
  • Track monthly – What gets measured gets improved

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