What is a good net worth for my age?

A good net worth varies significantly by individual circumstances, but generally, a positive and growing net worth is ideal. For specific benchmarks, refer to median net worth figures for your age group, such as the projected median of $110,000 for ages 35-44 or $480,000 for ages 55-64 (as of 2025 estimates). These figures represent the middle point, meaning half of households in that age group have more, and half have less.

How is net worth calculated?

Net worth is calculated by subtracting your total liabilities (what you owe) from your total assets (what you own). Assets include cash, investments, real estate, and valuable possessions. Liabilities include mortgages, loans, and credit card debt. The formula is: Total Assets - Total Liabilities = Net Worth.

What assets should I include in my net worth calculation?

You should include all assets that have monetary value. This includes liquid assets like cash, checking and savings accounts; investment assets such as 401(k)s, IRAs, brokerage accounts, and real estate equity; and personal assets like vehicles, jewelry, and collectibles. Only include the current market value of these items.

What liabilities should I include in my net worth calculation?

All outstanding debts and financial obligations should be included as liabilities. This encompasses mortgages, auto loans, student loans, credit card balances, personal loans, and any other money you owe. It's crucial to be thorough to get an accurate picture of your financial obligations.

Why is median net worth a better benchmark than average net worth?

Median net worth is often considered a better benchmark because it represents the middle value in a dataset, making it less influenced by extreme outliers (e.g., extremely wealthy individuals). Average net worth can be skewed upwards by a few very high net worth individuals, giving a less realistic picture for the majority of the population.

How often should I calculate my net worth?

It's recommended to calculate your net worth at least once a year, or ideally, every six months. Regular tracking allows you to monitor your financial progress, identify trends, and make necessary adjustments to your financial plan. This consistent review helps ensure you stay on track toward your long-term goals.

What are the main factors that influence net worth?

The main factors influencing net worth include your income level, your savings rate, how effectively you manage debt, the performance of your investments, homeownership and real estate equity, and your education and career choices. Each of these elements plays a crucial role in your ability to accumulate wealth over time.

Net Worth by Age: Financial Milestones & Benchmarks