You may think a term like “net worth” only applies to celebrities and CEOs, but it’s something all consumers have. Your net worth is just the sum of your assets (cash, bank accounts, investments, house, etc.) minus any liabilities (credit card bills, personal loans, mortgages, etc.).
According to the Federal Reserve’s most recent Survey of Consumer Finances, Americans’ median net worth surged 37% to $192,900 between 2019 and 2022 — the biggest jump since the triennial survey began in 1983.
Your net worth will shift dramatically over the course of your life. Its importance depends on the value you place on wealth, but it can be a useful snapshot of your current financial situation.
Americans’ average net worth
Here’s a breakdown of the median and average net worth of Americans by age, according to the Federal Reserve’s 2023 Survey of Consumer Finances.
| Age of head of household | Median net worth | Average net worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: Federal Reserve Survey of Consumer Finances, 2022
How to calculate your net worth
You can calculate your net worth by adding up your assets and subtracting your liabilities.
Assets include anything you own of value, including:
- Cash (savings, checking and money market accounts)
- Property
- Cars
- Art and collectibles
- Investments
- 401(k) and other retirement accounts
- A life insurance policy with cash value
Liabilities include any debts, such as:
- Mortgages
- Auto loans
- Student loans
- Credit card or medical bills
Checking your numbers should be a regular part of your financial routine. Are you in a good position to buy a new car? Is now the right time to take out a mortgage?
Budgeting apps like and YNAB (You Need a Budget) make tracking your net worth easy by linking your checking, savings and money market accounts with your investments, retirement accounts, loans and bills in one dashboard. Empower also has a net worth calculator to help you see where you stand.
Empower
-
Cost
App is free, but users have option to add investment management services for 0.89% of their money (for accounts under $1 million)
-
Standout features
A budgeting app and investment tool that tracks both your spending and your wealth
-
Categorizes your expenses
Yes, but users can modify
-
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
-
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
-
Security features
Data encryption, fraud protection and strong user authentication
You Need a Budget (YNAB)
-
Cost
34-day free trial then $109 per year ($9.08 per month) or $14.99 per month (college students who provide proof of enrollment get 12 months free)
-
Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the “zero-based budgeting system” where no dollar is unaccounted for). Every dollar is assigned a “job,” whether it’s to go toward bills, savings, investments, etc.
-
Categorizes your expenses
-
Links to accounts
Yes, bank and credit cards
-
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
-
Security features
Encrypted data, accredited data centers, third-party audits and more
How to increase your net worth
To grow your net worth, you can either increase your assets or reduce your liabilities (or both). There are several approaches.
1. Pay down your debts
Experts suggest paying off your highest-interest debt first, a strategy known as the avalanche method. Once you pay off that bill, you move to the next most expensive one. Over time, you’ll end up paying less overall in interest.
Some people tackle debt from the opposite angle, focusing on bills with lower balances that they can cross off faster. The snowball method will mean paying more interest, but it may be the psychological boost you need to keep attacking your liabilities.
Whichever approach you choose, make every effort to pay more than the minimum payment on credit cards and other revolving debts. If you only pay the least amount required, the interest charges will keep mounting.
2. Apply for a debt consolidation loan or debt settlement plan
A debt consolidation loan can organize several outstanding balances into one monthly payment with a lower fixed interest rate. Keep in mind that most loans have fees that may reduce the savings you receive from consolidating.
If you don’t have the credit or the funds to make regular payments, a debt settlement company can negotiate with your creditors to lower your balances — sometimes by as much as 50%. You’ll have to pay a fee for the service (anywhere from 15% to 25% of the enrolled debt) and your credit score will take a hit. If you’re successful, however, you could become debt-free years faster.
3. Keep your cash in high-interest accounts
An easy way to increase the value of your liquid assets is through a high-yield savings account (HYSA), which combines easy access with an enviable interest rate.
One of our top picks for HYSAs is UFB’s Portfolio Savings. The online-only institution offers a healthy yield with a nationwide network of free ATMs and no minimum deposit or monthly fees.
4. Contribute more to your 401(k) and investment accounts
For the 2026 tax year, employees can contribute up to $24,500 into their 401(k) and $7,500 into an IRA. Try to increase your contribution percentage — or even max it out — especially if your employer matches your retirement contributions. (The combined employee and employer cap for 2026 is $72,000.)
If you’re age 50 or older, you may be eligible for catch-up contributions of up to $8,000 to your 401(k) and $4,000 to a SIMPLE IRA in 2026. These increases can help make up for years when you weren’t able to save as much.
Net worth FAQs
How do you calculate your net worth?
Your net worth is your total assets minus any liabilities. To calculate your net worth, tally up your liquid and physical assets and savings — including investments, property, automobiles and retirement funds. Then subtract outstanding debts, including your mortgage, medical bills, car payments or student loans.
What is the difference between average and median net worth?
Average wealth can be skewed by a few uber-wealthy individuals, while median net worth better represents the middle-of-the-road consumer. For example, the median net worth in 2022 was $192,900, a 37% increase over the previous three years. The average net worth, however, rose to a whopping $1,063,700.
Can you have a negative net worth?
If your total liabilities — including credit card bills, mortgage payments and student loans — outweigh your assets, you have negative net worth. In the short run, you should look for ways to cut spending and put more money toward debts. In the long run, you may have to make some larger financial sacrifices or reconsider your retirement date.
Who is considered a high-net-worth individual?
While definitions vary, a high net worth is often defined as having at least $1 million in liquid assets, excluding a primary residence, cars or other valuables.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
