Key Takeaways
\nTo measure net worth, you subtract the total of how much you owe from the total of how much you own.As of 2022, the average net worth in the United States was $1,063,700, an increase of 23% from just three years earlier, according to the Federal Reserve. Checking net worth once every quarter is a good way of monitoring your finances.<\/p>\n
Your net worth can say a lot about your financial life. It is easy to calculate and is a quick way to compare yourself to others at your income level. Just what is net worth?\n<\/p>\n
\u201cNet worth<\/a> is a key measure of financial health. It\u2019s the difference between what you own and what you owe. It reflects not just how much money you make but how well you manage, save, and invest your resources,\u201d says Inna Rivilis<\/a>, the founder of and a certified financial planner at Sunflower Financial Planning.\n<\/p>\n How Do You Calculate Net Worth? <\/p>\n To calculate your net worth, you\u2019ll need to make a list of your assets<\/a> and liabilities<\/a>.\n<\/p>\n \u201cCalculating net worth is straightforward: List all your assets\u2014such as savings, investments, retirement accounts, and real estate\u2014and subtract all your liabilities, including mortgages, car loans, and credit card debt. The result offers a clear snapshot of where you stand financially<\/a>,\u201d Rivilis says.<\/p>\n How Does Your Net Worth Compare to Others? <\/p>\n According to the Pew Research Center, in 2021 (the most recent data available), upper-income households had a median net worth<\/a> of $803,400, middle-income households had a median net worth of $204,100, and lower-income households had a median net worth of $24,500.\n<\/p>\n According to the Federal Reserve<\/a>, the average net worth in the United States was $1,063,700 as of 2022, an increase of 23% from just three years earlier. (The Fed conducts its survey every three years; its 2025 survey is due in 2026). The median net worth rose 37% to reach $192,200 in that same year.\n<\/p>\n The most common locations where Americans held assets were transaction accounts such as checking accounts (98.6%), vehicles (86.6%), their primary residence (66.1%), and retirement accounts (54.3% ) in 2022.\n<\/p>\n 2022 Average and Median Net Worth For Different Income Levels<\/p>\n Income Percentile Less Than 20% 20% to 39.9% 40% to 59.9% 50% – 79.9% 80% – 89.9% 90% – 100% How does your net worth compare for your income level? If it is lower than you would like, there are things you can do to improve it.\n<\/p>\n \u201cImproving net worth comes down to two core principles: increasing your assets and reducing your liabilities. Save regularly, invest for long-term growth, and focus on paying off debt<\/a> efficiently. Avoiding unnecessary expenses frees up more money to grow your savings<\/a> and investments<\/a>,\u201d Rivilis says.\n<\/p>\n Why Is Net Worth an Important Measure of Your Finances? <\/p>\n Measuring your net worth is a great way to track how well you are doing financially.\n<\/p>\n \u201cNet worth serves as a financial progress report. Even if your income<\/a> changes from year to year, a growing net worth indicates you\u2019re building financial security,\u201d Rivilis says. \u201cTracking it helps you see if your spending, saving, and investment habits are aligned with your long-term goals.\u201d<\/p>\n How Often Should You Check Net Worth? <\/p>\n Plan on calculating your net worth four times each year to see if you are on track with your financial goals.\n<\/p>\n
\nAverage Net Worth
\nMedian Net Worth<\/p>\n
\n$129,700
\n$14,000<\/p>\n
\n$218,700
\n$71,000<\/p>\n
\n$385,400
\n$159,300<\/p>\n
\n$636,800
\n$307,200<\/p>\n
\n$1,264,700\u00a0
\n$747,000<\/p>\n
\n$6,629,600
\n$2,556,200<\/p>\n