Average Net Worth by Age (How Do You Compare?)

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 3 December 2024

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

Are you beating the average American in personal finances? Today, we’re sharing the average net worth by age to see where exactly you stack up. Whether you’re in your twenties, thirties, forties, or fifties, we have the data showing whether you’re behind (or ahead of) the norm. What do you do if you feel like you’re falling behind? Don’t worry; we’re also giving tips on how every age bracket can improve its net worth. Don’t know how to calculate your net worth? It’s easy, and you can do it in minutes after (or even during) this episode. Once you know your net worth, it’s time to decide your next move. Do you need to make more money so you can invest faster? Are you close enough to FIRE that you can let your foot off the gas a bit? Should you buy that new boat? No! Don’t ever buy a boat. We’re also sharing our own net worth journeys and the money moves we made that skyrocketed our wealth to millionaire status. You can’t go back in time and copy everything we did, but you CAN copy some of our same strategies to boost your net worth! In This Episode We Cover The average net worth for Americans in their twenties, thirties, forties, and fifties How the rich invest differently than most of us (and what they’re buying) How to calculate your net worth and whether primary residence equity is included or not What everyone in their twenties should be doing with their money to secure a comfortable retirement Why you DON’T need to be a mega-high income earner to become a millionaire The reason Scott thinks YOU should be starting a business to FIRE faster And So Much More! Links BiggerPockets Money 35 - Hacking Your Life to Live for (Almost) Free with Craig Curelop BiggerPockets Money 416 - Codie Sanchez: These “Boring Businesses” Will Make You Rich BiggerPockets Money 491 - Why You DON’T Need a College Degree to Reach Financial Freedom w/Adrian Zapata and Javier Leyva Visual Capitalist Composition of Wealth Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-586 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Have you ever thought about how your household wealth or annual income stacks up to others your age?
0:06.2	Or even how others made their first million dollars?
0:09.6	Today we're talking about net worth, what it is, how to calculate it, and what a healthy net worth looks like in your 20s, 30s, 40s, and beyond.
0:19.0	Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.
0:22.3	My name is Mindy Jensen. And with me, as always, is my plaid fanatic co-host, Scott Trench.
0:27.2	Thanks, Minnie. It's great to see this wonderful pattern we've established with our bigger pockets money.
0:32.8	Bigger Pockets has a goal of creating one million millionaires. You are in the right place if you want to get your financial house in order because we truly believe financial freedom is attainable
0:40.0	for everyone, no matter when or where you're starting. Excited to get into the show today. We're going
0:44.7	to talk data. We're going to look at the average median and top 1% wealth by age bracket.
0:52.2	What's the top 1% wealth in your 20s, 30s, 40s, 50s, and 60s and get into it.
0:57.1	And we'll have some discussion about how people get there into these upper echelons and
1:01.3	accelerate the wealth-building journey.
1:02.9	Funny you should say that, Scott. I just asked, do you ever wonder how others made their first
1:07.8	million? So I'm going to put you on the spot. How did you make your first
1:11.7	million? Yeah, mine was a look, look, there's a couple of things that that accelerated my journey.
1:16.5	So I started my journey in 2014 and I started out by making $50,000 a year. And over the next five
1:23.4	years, I was able to increase that income to close to $200,000 per year. I kept my expenses
1:29.8	low the whole time. And I serial house hacked. I invested into the stock market. And that
1:38.3	compounding over about five, six years enabled me to cross the million dollar mark shortly
1:44.1	before 30, probably 28, 29.
1:46.8	So I had a bit of a different journey.
1:48.5	You had the benefit of Mr. Money Mustache when you were starting your journey.
	...

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