What Is Net Worth?
Net worth = assets minus liabilities. It's the single best measure of financial health. The median American household net worth is $192,900 (2023 Federal Reserve data). By age: 35-44 average $549,600, 55-64 average $1.56 million, 65-74 average $1.79 million.
How to Grow Your Net Worth
- Pay down high-interest debt first
- Max out retirement accounts (401k + IRA = $30,500/year)
- Build an emergency fund (3-6 months expenses)
- Invest consistently in low-cost index funds
- Track net worth quarterly to stay motivated