How Your Net Worth Stacks Up Against Peers With Similar Earnings—The Results May Surprise You

Essential Points to Remember

• Net worth is determined by subtracting your total debts from the value of everything you own.

• Federal Reserve data shows that in 2022, the average net worth in the United States reached $1,063,700—a 23% jump from three years prior.

Your net worth provides valuable insight into your overall financial situation. It’s simple to figure out and offers a quick way to see how you stack up against others with similar earnings. But what exactly does net worth mean?

According to Inna Rivilis, certified financial planner and founder of Sunflower Financial Planning, net worth is a fundamental indicator of your financial well-being. It represents the gap between your assets and liabilities, highlighting not only your income but also how effectively you manage, save, and invest your money.

Calculating Your Net Worth

To determine your net worth, start by listing all your assets and liabilities.

Rivilis explains, “The process is straightforward: add up everything you own—such as cash, investments, retirement funds, and property—then subtract everything you owe, like mortgages, car loans, and credit card balances. This calculation gives you a clear picture of your financial standing.”

How Does Your Net Worth Stack Up?

The U.S. Census Bureau’s 2024 Survey of Income and Program Participation found that in 2023, median household net worth varied widely by income group. The lowest 20% of earners had a median net worth of $15,100, while those in the middle quintile held $163,500. The top 20% reported a median net worth of $882,200.

According to the Federal Reserve, the average net worth in the U.S. was $1,063,700 in 2022, up 23% from three years earlier. The median net worth also climbed 37%, reaching $192,200 that year. (The Federal Reserve updates this data every three years, with the next release expected in late 2026.)

Most Americans’ assets include checking accounts (98.6%), vehicles (86.6%), primary homes (66.1%), and retirement savings (54.3%).

2022 Average and Median Net Worth by Income Percentile

Curious how your net worth compares to others in your income bracket? If you’re not where you’d like to be, there are steps you can take to improve.

Rivilis advises, “Boosting your net worth boils down to two main strategies: growing your assets and cutting down your debts. Make saving a habit, invest for the long term, and prioritize paying off debt. Reducing unnecessary spending frees up more money to build your savings and investments.”

Why Tracking Net Worth Matters

Keeping tabs on your net worth is an effective way to monitor your financial progress.

“Net worth acts as a financial report card. Even if your income fluctuates year to year, a rising net worth shows you’re building financial stability,” says Rivilis. “Regularly checking it helps you determine if your spending, saving, and investment habits are moving you toward your long-term objectives.”

How Often Should You Review Your Net Worth?

It’s a good idea to calculate your net worth every quarter to ensure you’re staying on track with your financial plans.

Rivilis recommends, “Reviewing your net worth every three months strikes a healthy balance. It lets you monitor your progress without getting distracted by short-term market swings. If you have specific financial targets, checking in more often can help keep you motivated and focused.”

Final Thoughts

Net worth is a powerful tool for evaluating your financial health. Assessing it every quarter can help you measure your progress toward your goals.

To strengthen your net worth, focus on increasing your assets and reducing your debts. With consistent effort, you’ll see your financial position improve.