Your net worth is the single most important number in personal finance. It’s the difference between everything you own (assets) and everything you owe (liabilities). Think of it as your financial report card — a snapshot of your overall financial health at any given moment.
Net Worth Formula
Net Worth = Total Assets − Total Liabilities
How to Calculate Your Net Worth
List your assets: Home equity, retirement accounts, investments, savings, vehicles, and anything else of value.
List your liabilities: Mortgage balance, student loans, car loans, credit card debt, and other obligations.
Subtract: Total assets minus total liabilities equals your net worth.
U.S. Median Net Worth by Age (2024 Fed Survey)
Age Group
Median Net Worth
Average Net Worth
18–24
$11,800
$46,800
25–29
$20,100
$84,900
30–34
$53,900
$183,500
35–39
$55,500
$294,400
40–44
$134,700
$549,600
45–49
$164,100
$643,200
50–54
$171,600
$793,800
55–59
$193,500
$864,800
60–64
$228,800
$1,059,500
65–69
$272,300
$1,173,700
70–74
$257,400
$1,069,400
75+
$236,300
$958,800
Source: Federal Reserve Survey of Consumer Finances, 2024. Values adjusted for inflation.
How to Improve Your Net Worth
Pay down high-interest debt first. Credit card debt at 20%+ interest destroys net worth faster than any investment can build it.
Automate savings and investments. Consistent monthly contributions to retirement and investment accounts compound over time.
Increase your income. Side hustles, career advancement, or passive income streams accelerate asset growth.
Avoid lifestyle inflation. As income grows, keep expenses stable and direct the surplus toward assets.
Track it quarterly. What gets measured gets managed. Recalculate every 3 months to stay on track.
Frequently Asked Questions
Is a negative net worth bad?
It’s common for young adults and recent graduates to have a negative net worth due to student loans. The key is having a plan to move toward positive. Every dollar of debt paid off and every dollar saved improves your position.
Should I include my home’s market value?
Yes, but use your home equity (market value minus mortgage balance), not the full market value. This gives you the accurate portion you actually own.
How often should I check my net worth?
Quarterly is ideal. Monthly can be too noisy due to market fluctuations, while annual checkups may miss important trends. Set a recurring reminder every 3 months.
What’s a good net worth for my age?
There’s no single “right” number, but a commonly cited rule of thumb from “The Millionaire Next Door” is: (Age × Annual Pre-tax Income) ÷ 10 = Target Net Worth. Being above this means you’re a “wealth accumulator.”