The Federal Reserve’s latest data from 2022 shows that the average net worth in the United States was $1,063,700, a 23% increase from three years earlier. The median net worth also rose by 37% to $192,200 in the same period. According to the Pew Research Center in 2021, upper-income households had an average net worth of $803,400, while middle-income households had a median net worth of $204,100.
Lower-income households had a median net worth of $24,500. To improve your net worth, focus on increasing your assets while reducing your liabilities. Regular savings, long-term investments, and efficient debt repayment are effective methods.
Avoiding unnecessary expenses can also free up more money to grow your net worth.
Net worth trends and improvement tips
Calculating your net worth every quarter allows you to track your progress without focusing too much on short-term fluctuations.
If you are working toward specific financial goals, more frequent reviews can keep you motivated and on track. Your net worth serves as a financial progress report, indicating your financial security. A growing net worth suggests that your spending, saving, and investment habits are aligned with your long-term financial goals.
To improve your net worth, focus on bolstering your assets and paying down debts. This will lead to a stronger financial picture over time. Evaluating your net worth every three months can help you see how well you are achieving your financial goals.
Image Credits: Photo by todd kent on Unsplash
