Did you know you have a net worth? That’s right. Every person has a calculated net worth. So, what does that actually mean?
Your net worth is the total amount of your assets minus your liabilities. Your assets that are calculated to figure your net worth, include both liquid and non-liquid assets like your car, home, and any investments you hold. Liabilities are all the debts you carry.
Your net worth is essentially a measure of what you are “worth,” with all of your debts paid.
Now you know what a net worth is but do you know yours? Are you on par with the other people your age?
Of course there are many factors to consider and take into account when calculating net worth; like race, origin, and home ownership. The Census Bureau breaks these numbers down more accurately here, but for today we are going to keep it basic.
Here is a look at average net worth by age:
The average 35 year old with home equity has a net worth of $6,900 and without home equity it drops to $4,138.
The average 36 to 44 year old with home equity has a net worth of $45,740. That is a significant jump from the 35 year old net worth! The average 44 year old without home equity is $18,197.
The average 45 to 54 year old with home equity has a net worth of $100,404. Are you feeling average yet?
The average 55 year old without home equity drops their net worth to $38,826.
The average 55 to 64 year old with home equity has a net worth of $164,498.
Without home equity their net worth is $57,800. Notably, this age group has the biggest jump in net worth. However, keep in mind that some people start to draw from their assets as they are approaching their “magical retirement age”.
The average 65 to 69 year old with home equity has a net worth of $193,833 and without home equity it is $66,168.
The average person from ages 70 to 74 has a net worth of $225,390 with home equity. If you are an average 74 year old without home equity your net worth would be about $68,176.
The average person over the age of 75 has $197,758 in net worth with home equity. Without home equity, the average person in this age range has $46,936 in net worth.
Based on these number, do you feel above average, below average or just about on point?
If you remember that your net worth is calculated by the total of your assets minus your total liabilities, than you can work on increasing your net worth. When you plan ahead for retirement and where your net worth should be by then, take into account what you spend money daily and what lifestyle you want to live during retirement. Once you determine the life you want to live, you can set your goals accordingly and work on increasing your net worth if you are not on target.
Here’s to a high net worth and clear vision for your future!