What should your net worth be at age 30?

There's no true answer as to what your net worth "should" be at any age, but we do have some recent data to get a sense of where most people are. The median net worth of a 30-year-old is somewhere around $14,000, while if you have a positive net worth at age 30, you're doing reasonably well. Remember that most 30-year-olds are still working to pay back costly student loan debt and/or might just be getting started on paying off their first mortgage. These large obligations can drag down your net worth, even if you're earning a fair amount of money at a young age.

Does a pension count toward your net worth?

In the case of pension income in retirement, or the stream of money you receive from a previous employer, your net worth would include only the portion you do not spend. If you were to save a portion of this income, it would be counted as an asset on your personal balance sheet. On the other hand, if your pension presents as a block of money from which payments may arise, then yes, you can include the entire amount as an asset. Different pension plans have different provisions and withdrawal options, so the degree to which you include pension value as part of your net worth may differ from person to person.

Does net worth include your 401(k)?

Yes, your net worth should include your 401(k) balance. It is considered an asset for calculating your net worth. If you have a loan against your 401(k), however, you would either need to include the loan amount as a liability or decrease your 401(k) balance by the amount of the loan to get an accurate net worth estimate.

Net Worth Defined and Calculated: What's My Net Worth?

How to Calculate Your Net Worth

Key Points

Net worth is a measure of how much wealth you have that represents financial stability.
Net worth is calculated by adding up the value of assets and subtracting the amount of liabilities.
Investing regularly in the stock market can boost your net worth over time due to compounding.

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A person using a calculator with financial charts on the desk. — Image source: Getty Images.

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Net worth is the difference between what you own (cash, stock, and other items) and what you owe (your debts and other liabilities). Another way to describe net worth is the excess of your assets over your liabilities. Your net worth can be positive or negative.

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Asset

An asset is a resource used to hold or create economic value.

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Examples of common assets and liabilities.

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Net worth by age.

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When you look at net worth by age, there are a few key things to know.

First, net worth typically goes up over time, so it is normal for young people to have a lower net worth.

Second, average net worth often appears artificially high because the tremendous wealth concentration in the top few percent of households skews the averages upwards.

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Median net worth values tend to represent household wealth better by avoiding this problem. Remember, the median is the value at which half of households have more and half have less.

For those aged 45–54, for example, you might feel behind if your net worth is $300,000 and you see the average as $971,270. In reality, your $300,000 net worth is in the top half of households since it's above the median of $246,700.

Again, if your net worth falls below the average or median, don't worry. This is only one measure of household value, and there are several ways to improve over time.

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Net worth by race.

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As you'll note, the disparity in average net worth and median net worth across ethnicities is vast.

This is due to the ongoing effects of generational poverty and systemic issues that have hindered certain groups throughout our nation's history.

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Net worth by education level.

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Net Worth FAQ

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About the Author

Christy Bieber is a contributing Motley Fool retirement and Social Security expert covering retirement planning, 401(k)s, IRAs, and other personal finance topics. Christy has written about finance since 2008 and previously taught business courses at Bryant & Stratton College. She holds a law degree from UCLA and a bachelor’s degree in English, media, and communication with a certificate in business management from the University of Rochester. In law school, she earned three CALI Awards for Excellence for the highest scores in civil procedure and contract law exams.

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