Net Worth — Your Financial Scoreboard

Net worth = Assets − Liabilities

It is the most comprehensive measure of financial health.

Assets (what you own):

Checking/savings account balances

Investment accounts (brokerage, 401k, IRA)

Home equity (value − mortgage balance)

Car value

Business equity

Liabilities (what you owe):

Mortgage balance

Car loans

Student loans

Credit card balances

Personal loans

Average net worth by age (US, 2024):

Under 35: ~$76,000 (median: ~$13,900)

35–44: ~$436,000 (median: ~$91,300)

45–54: ~$833,000 (median: ~$168,600)

55–64: ~$1.18M (median: ~$212,800)

A rule of thumb (The Millionaire Next Door formula):

Expected net worth = Age × Annual Income / 10

If you're above the formula: accumulator. Below: under-accumulator.

Track monthly: Knowing your number builds motivation and accountability.

Reference:

Wikipedia: Net Worth

https://en.wikipedia.org/wiki/Net_worth