You Might Not Believe the Net Worth of the Top 10%

Wealth varies quite a bit in the United States, and it's no secret that much of it is concentrated at the top. Even knowing that, the amount of wealth of the richest families could be surprising.

With the release of the Federal Reserve's 2022 Survey of Consumer Finances, there's new data available on the net worth of families in the top 10%. Net worth is calculated by adding up a family's assets and subtracting any debts. Here's the latest data.

The net worth of the top 10%

The top 10% of families have a median net worth of $3.79 million. The median net worth for the United States as a whole, on the other hand, is $192,900. That means families in the top 10% have nearly 20 times as much as the typical U.S. family.

On a positive note, overall net worth has been increasing. During the previous Survey of Consumer Finances in 2019, the median U.S. net worth was $141,100, so it has gone up by 37%. That's actually a larger increase than the median net worth for the top 10%, which went up by 26% from 2019 to 2022.

In fact, all the groups analyzed in the survey saw positive changes in their net worths. That includes every income group and age range. The wealthiest Americans certainly have much, much more. But anybody can increase their net worth, and that's a good goal to set for yourself. As a general rule, if your net worth is going up, that's a sign you're doing the right things with your personal finances.

What are the keys to a high net worth?

Reaching a high net worth, such as $1 million or more, is a common financial goal. While there's more than one way to get there, the recent survey data can give us an idea of what tends to work best for building net worth. Here are the common characteristics of people with higher net worths:

• They earn large incomes. Net worth rises significantly in every income percentile. The median net worth is $14,000 for earners in the bottom 20%, compared to $2.56 million for those in the top 10%
• They have higher levels of education. People with a college degree have a median net worth of $464,600. That's more than four times as much as high school graduates ($106,800) and more than 12 times as much as people with no high school diploma ($38,100).
• They're homeowners. Homeowners have a median net worth of $396,200, compared to $10,400 for renters.
• They're older. Net worth rises for older Americans. Those younger than 35 have a median net worth of $39,000. It peaks at $409,900 for those between 65 and 74.

This doesn't mean you need to fulfill all those requirements to have a high net worth. It's certainly possible to build wealth with an average income, without a college education, and as a renter. But these characteristics show some strategies that have worked for many Americans, so they're worth considering.

If you're trying to build your net worth, a great place to start is with your income. As you earn more, it becomes easier to save more. See if there are ways to advance and make more money at your current job, or if you could increase your earnings with a new job or a side hustle.

The other key ingredient is where you put your money. As the data shows, many people build wealth through their homes, but that's not your only option. Investing in stocks is another way to build wealth. Even if you're a homeowner, it's still a good idea to buy stocks, as well. They offer excellent growth potential, with the average stock market return being about 10% per year. They're also more liquid than owning a home, as you can buy and sell stocks quickly with online stock brokers.

Building your net worth ultimately comes down to how much you earn versus how much you spend. If you consistently save and invest a portion of your income, you'll see positive results.