The Median Net Worth By Age! (We are Getting Richer!)

Transcript:

The median net worth by age. And yes, we are actually getting much richer.

What's up wealth builders and welcome to the personal finance podcast. I'm your host, Andrew founder of mastermoney. co and today on the personal finance podcast. We're going to be talking about the median net worth by age. If you guys have any questions, make sure to hit us up on Instagram, Twitter, tick tock at master money co and follow us on Spotify, Apple podcast, or whatever podcast player you love listening to this podcast on.

And if you want to help out the show, consider leaving a five star rating and review. We truly, truly appreciate you leaving those. Five star ratings and reviews. Now, today we are going to be diving into the median net worth by age. And this is one of my favorite episodes to do because every three years, the federal reserve puts out a report that actually summarizes the changes to family finances in the United States.

And. For most people, comparison can be the thief of joy, but what I want you to do here is it is good to use the median and average net worth by age just to have some sort of benchmark to see where you are. Now, this is not the end all be all. I want you to focus on the things that you can control, but at the same time, these are usually very helpful just to see where you land and in what range.

Now, as we go through this, I will link it up down in the show notes below, because you're going to hear me reference this for the next couple of years. I will reference this report a lot because this is the actual real numbers that the Federal Reserve puts out. Now, one cool thing about these numbers also, when we go through these, as these are actually inflation adjusted numbers.

This means that it is actually showing the real dollar changes when showing any year before 2022. So this comes out every three years, and then it comes out the year after the final year. So what that means is that this report is showing 2019 up to 2022 at the time recording this, and then it will show more.

You know, in the next three years. So this is really important because that means that this data is showing that net worth has actually grown substantially over timeframe. So I'm really, really excited to kind of share this with you and go through this process with you. Now in this episode, I'm actually going to go through at the top of the show.

What is net worth? And I'm going to show you, you know, some of the things that make up your net worth. I'm going to go through the average net worth by age and compare it to the median net worth by age. And I'm going to talk about the differences between the two and why it's very important to understand those differences.

Then we're going to go through how to actually grow your net worth. If you're brand new to learning how to build up your wealth. I'm going to talk about a bunch of different ways that you can grow your net worth and how to automate tracking your net worth. Every single person listening to this podcast should be tracking their net worth.

If you are not yet, that is your financial scorecard. You need to be tracking your net worth. We're going to be talking about how to do that automatically. We want to automate as many pieces of our personal finance system as we possibly can. And net worth is another big factor towards that. You know, I'm huge on automation.

I'll show you exactly how to automate that process. So without further ado. Let's get into it. All right. So the first question is what exactly is net worth? If you've never heard of net worth or you've heard people throw that term around and you don't know exactly what this is, then I'm going to explain what net worth is.

If you are not new to net worth, you can skip ahead two minutes if you want to, to hear when we dive deeper into this stuff. But your net worth is your total assets minus your total liabilities. To put this in simple terms, it is what you own. Minus what you owe. So say, for example, you're trying to figure out what your assets are, what you own are.

This can be things like cash in your checking account, cash in your savings account, cash in your high yield savings account, all different pieces of cash can be factored into your net worth. This is also investments. So this is a huge factor when it comes to your net worth. And what I really truly like to track is cash and investments.

So investments are things like stocks, bonds, mutual funds, index funds, ETFs, anything that you have when it comes to investments. That is. Going to be factoring in your net worth. Yes. That's includes your retirement accounts, your Roth IRA, your 401k, your 403b, your 457, depending on where you work and what you have, all of those are classified as part of your net worth.

In addition, real estate properties. So things like your personal residence, for example, and the equity in your personal residence. Now, if you're underwater on your house, then that is actually a negative, uh, when it comes to your net worth. But when it comes to your personal residence that can be on there or rental properties, things like duplex, triplex.

Commercial buildings, apartment buildings, all these different things are going to add to your net worth. This is why you see real estate investors with very high net worth, typically, because if they have a ton of equity and properties after they've owned them for a long time, then their net worths are gonna be much, much higher.

And you can have a lot of people out there who have very high net worth, but have very low liquidity, meaning that they don't have a ton of cash on hand, but because their assets have appreciated over time. They have a high net worth. You've seen this with the baby boomer generation, for example, where the baby boomer generation has a ton of equity in their home.

And the problem there is that the majority of their equity for most folks are in their home, but they don't have enough cashflow really to fund their lifestyle. So this is another big problem that we have. You do not want to have the majority of your net worth in your home. I want you to learn that as we go through.

This episode. In addition, you can also classify things like personal property. So this is things like the value of your car. This is jewelry. This is artwork. All of these can be classified in your net worth statement. If you want to, I typically refrain from adding this stuff to my net worth statement.

Why? Because some of this stuff. doesn't have intrinsic value, meaning that it's only worth what someone else is willing to pay for it. It doesn't have any cash flow backing it or anything like that. So if you think about cars for a second, they go down in value over time. So if you're tracking your car, sure, your net worth might get a nice little bump at the beginning, but then it depreciates over time.

But there is nothing wrong with having your cars in your network statements. Most people have their cars in their network statements. I just don't do it because I don't think I will ever cash in my cars and not drive a car anymore. So really, I'm just rolling that into the next depreciating asset, which is just over and over and over again.

Now, jewelry may hold its value longer than something like your car. So that's something you could put on your net worth statement. And you have art available as well. Now, what are liabilities? Meaning that what are we subtracting when we add up all of these items here, all of these assets in one place, all of the things that we own, then what are liabilities?

What are we subtracting from there? So some of the liabilities are things like your mortgage, for example. So your mortgage is a debt. And so how much you have in your mortgage, you need to subtract from the rest of these assets you have in place. Car loans are also going to be subtracted by your assets.

Student loans, how much you have in student loans will reduce your net worth until you get that paid down. Credit card and other debts will also reduce your net worth. And any other outstanding debt or obligation, if you have a personal loan or if you have business loans, all of those will reduce your net worth on your net worth statement.

And the business loans would if they're on your personal. Network statements. So in the business loans would if you have a personal guarantee and or if they are on your personal statements, if they're in LLC, you can classify them potentially a little differently if you want to. But I just like to look at the real numbers in my real life.

So typically I will add them in. So here is something I want you to think about here. It's a lot of people when they're starting off, maybe you just graduated college, you get in your very first job, you go out and you calculate your net worth and your net worth is negative. I do not want you to get discouraged because your net worth is negative.

This is a normal thing, especially if you have student loans when you're first starting out. What is going to be fun and what is going to be cool about this is that over time you're going to watch that net worth number start to increase over time. Meaning if you're in the negative and say you have a negative 20, 000 net worth, As you start to pay down debt, you're going to see this creep down to 15, 000, negative 10, 000, negative 5, 000.

All of a sudden you have a break even net worth, meaning your net worth is zero, your assets and your liabilities or even then what you can do is then you're going to start to work to watch that net worth grow over time. It is amazing how fast this can accelerate. If you make the right financial decisions, I'm not saying you have to be perfect.

I'm just saying you have to make the right big financial decisions in order to get to that net worth number that you want to get to. Because your net worth is your financial scorecard, and that is why we want to track this and make sure that we understand where our money is going and what we are doing with our money.

So this is really, really important stuff that you understand what your net worth is. Now let's figure out what the average net worth is and the median net worth is in the U. S. All right. So what I'm going to do first is I'm going to talk about the average net worth for all us households in 2022. And that number was 1, 059, 470.

Now this is an inflation adjusted number and it's an increase of 200, 000 from the average back in 2019, which was 865, 719. Now, if these figures seem incredibly high to you for any reason at all, it's because they are, because you think about this, every person. Walking around the U. S. Is not a millionaire.

They don't have a net worth of a million dollars. And this is the problem with averages. Because if you think about how averages work, say you had 10 people on the line, say you had 10 people on the line, and if nine of those people all had a net worth of 200, 000, for example, and there was one extra person who was worth 200 billion, think of Zuckerberg or Elon Musk or Warren Buffett, for example, then all those people are going to skew that number.

All the way up to an average of like 20 million just because you had that one individual standing there who had a much higher net worth than everybody else. This is why we don't want to look at averages when it comes to these numbers. And instead, we want to look at the median net worth. So what I'm going to do is I'm going to Go through and kind of show you by age, the average net worth and the median net worth.

So that you have a grasp on both of those. So what was the median net worth for us households in 2022? The number shoots down to a much more normal average, which is 192, 700. It's actually a little less than one fifth the average of what the actual. average net worth is. This is why I want to use media because these figures are so much more real than are the average.

But the great thing about this is the real median net worth for U. S. Households was up a stunning 37 percent from the last study. 37 percent is the total increase Over that timeframe in total household debt grew less than 4%. This is absolutely amazing. This is a great sign that people's net worth are increasing over time.

And you can think about this for a second, the media that for this entire time was preaching doom and gloom. And instead the average net worth is up 37%. So what we're going to do is we are going to dive into what you can do by age. And then the median net worth by age, and we'll also compare it to the average.

The average is going to be so significantly higher. But we're going to talk about that median net worth by age so that you have a better understanding of how this is going to work. All right. So the first group is folks in their twenties. So if you're in your twenties, the best thing about this is that time is on your side.

You have so much time for compound interest to start working for you and allowing you to build wealth. In fact, for most people, if you start in your twenties, if you can start just investing a couple hundred dollars in your twenties, you will become a millionaire because you have so much time left for this money to compound.

And this is where your dollars have the greatest impact where you may be thinking, Oh, an extra a hundred dollars, an extra 200 a month. That's not going to make a massive difference. It will make a massive difference over time. You are building the foundation to your financial house, or you are building the base to your financial house.

And this is going to absolutely change your life over that timeframe. And if you're in your early twenties, studies have shown that if you got an average rate of return of 10%, that every dollar you invest will be worth over 80 by the time you turn age 65, just by investing those dollars. Think about that for a second.

Every single dollar that you spend could be worth over 80. But let's just bring it down to 80. Just to make that simple math, every 5 that you spend is worth 400. By the time you turned age 65, every 20 is worth 1, 600. By the time you turned age 65. So the way that you can do this, the way that you can really make this easy is start now, start setting up.

Automatic investments from your checking account into either your brokerage account and or retirement accounts. Now that's the beautiful thing about the 401k is it goes directly out of your paycheck into your 401k. So you're automating the first thing. So you may be automating your money a little bit already and not even knowing it.

But now if you set up automatic transfers so that you can transfer that money over to your brokerage account, maybe your Roth IRA, maybe a nice HSA, sprinkle all of these in, and then you're going to be building wealth over that timeframe. I'm turning into the Emeril of personal finance here. So that is the biggest thing you want to do.

In addition, I want you to get your financial habits in order because starting to have your financial habits. In order right now is going to be incredibly powerful for you. So get your spending habits in order. Make sure you have a little money left over at the end of every single month so that you can invest those dollars.

And really, I want you investing those dollars first. Building up that strong emergency fund is also going to be really, really powerful in your twenties. Make sure you get six months of expenses. Saved up in that emergency fund and then setting up those retirement accounts and starting to contribute to them automatically is going to be very, very powerful.

Now, the third thing I want you to do in your twenties so that you can increase your net worth is focusing on earning more. Most of us in our twenties, we don't make as much money as we want to be making. So we need to focus on earning more. We need to Spend money on ourselves and invest in ourselves.

What do I mean by that? I mean investing in a bunch of different skills so that you can earn money infinitely. Investing in yourself is one of the most powerful things that you can do. So spending money on skills is going to be great. Say, for example, you master negotiating your salary and you spend money learning how to negotiate.

You go to negotiation conferences, you take negotiation courses, you read every book on negotiating. Never split the difference is a great one, by the way. Then if you do this over time, you're gonna be a master negotiator. And if you are really, really good at negotiating, you can get almost anything you want in this life.

Especially when it comes to some wealth building things, you'll be able to negotiate in real estate. You'll be able to buy businesses. You'll be able to negotiate your salary. You'll earn so much more money just with that one skill. And if you invest in yourself with just that one skill, it will change your life.

Number two is you can start a side business in your twenties to increase that income also. That is really going to help you significantly. Even if you fail because you're going to learn a ton of lessons. I had multiple businesses in my twenties fail, and I also had a few successful ones. And the successful ones are the ones I ended up focusing on so that we could grow those over time.

And then building up additional assets. If you can get started in something like real estate, if you're an Interested in that. That's another great thing that you can do because once you have that negotiation skill and you start negotiating your salary at your job for those increases, then you have so many other things that you can do.

Now, if you do not know how to negotiate your salary at your job, we have a free ebook that wrote with a very specific system. We have a six month system on exactly how to do this. And you can check that out at mastermoney. co slash resources. And it is called finally get that race. So that is the things I want you to focus on in your twenties.

If you want to increase your net worth over time. Now here is the average net worth and the median net worth for folks in their twenties. If you're between age 20 to 24, the average net worth is $120,896. The median net worth is $10,800. Now, if you're between the ages of 25 and 29, the average net worth is $120,000, and the median net worth is $30,160.

Now, something I want you guys to note here. Is that when it comes to average and median net worth, those media net worth numbers, as you're going to see, as we progress through these age ranges is actually extremely low. I want you to try to focus on beating those median net worth numbers. Make that your goal today.

Make it something that you think about every single day, because if you can beat those median net worth numbers, you're gonna be much better off than someone who's actually hitting them. Because as you see, as we progress, these median net worth numbers are not hitting the targets that they need to be hitting in order to be able to be financially free.

And retire. So we want to be better than these median net worth numbers, and we want to make sure that we are trying to outperform them as much as possible. Now let's jump into the thirties. All right. So in the thirties, we want to understand how powerful the time you have is. So. If you have not started investing, starting to invest is going to be the number one thing I want you to do, but I want you to continuously invest if you have already started investing.

Also, I want you to automate everything. Everything should be automated when it comes to your personal finance system. If it's not, we'll teach you how to do that here on the personal finance podcast. Make sure you are on the master money newsletter. We got some surprises coming out when it comes to everything automation on how to automate.

Every single piece of your money. So you're spending way less time actually managing your money, which is going to be amazing. Now in your thirties, for a lot of people, your income is going to start rising. Maybe you got past that entry level job. You got a couple of promotions. Maybe you got some additional certifications.

And so now what you're doing is you're starting to make a little more money. Maybe you're a physician. You were in residency. Now you're actually out in the world working. There's so many different things that could be happening, but most people's income will start to rise in their thirties. So your savings rate needs to increase over that timeframe.

I want your savings rate as a baseline to be at 20 percent or more, but really I want you to be saving 25, 30, 35 percent of your income over that timeframe so that you can really start to accelerate your path to wealth and financial independence. The reason why we do this is to put fuel. to the fire so that our money can grow faster and we can have our freedom with our time.

We want to be financially free. That is the entire goal of why we do this so that we can have freedom with our time freedom with our energy so we can do what we want each and every single day. That is the power of this stuff. Now number two is I don't want you really to sweat the small stuff here. I don't want you to sweat the nickel and dime type of things.

Have your latte. Have your avocado tossed. In fact, spend more money on the. Things that you value, but I want you to learn how to figure out what you actually value, and I want you to cut out everything else that you do not value. So when it comes to some of this stuff, you're really busy. Maybe you're getting married.

Maybe you have kids. There's a lot of stuff going on. You're juggling so many different balls in your thirties. So you just need to focus on the big decisions and don't sweat all that small stuff. So these are gonna be things like housing. Getting into too big of a house too early can absolutely destroy your wealth building ability.

Make sure your housing costs are less than 30 percent of your income. Number two is food costs. If you do not value eating out and you're spending way too much money on groceries, that is an area where a lot of people just don't realize how much they're spending. Make sure you track that for a couple months in a row.

See if it's way more than you actually think it is. For most people, it is. And they're shocked every time I have them add this up. So make sure you're adding up those food costs because food is another big factor. You really need to think through when it comes to groceries and eating out. And then number three is transportation.

Those are the big three items that if you can control those three, everything else you can spend lavishly on a bunch of other things. So I want you to make sure that you can control those three expenses and at least track them in some way, shape, or form. I like to just do this with automation and automate tracking of this stuff so that you can see exactly how much I'm spending and a percentage of my income on each one.

And then number three is as you start to build out a family, or if you have people who depend on your income, there's a couple of things I want you to do. First, I want you to look at a will. And if your net worth is over a million dollars, I want to let you look at a trust also. But making sure you look at a will or a trust is something definitely worthwhile.

Trust and will is the place that I think is super simple to do both of those things. And you can do it all online. So that's a great place to look if you don't have an attorney that you want to work through. Then there's life insurance. So the only life insurance that anybody really needs is term life insurance.

And it's only if there's people out there who depend on your income. Maybe you have an aging parent or you have kids or you have a spouse who depends on your income to live. That's when you would need life insurance. If you're just solo dolo out there, you don't have anybody depending on your income, then you do not need term life insurance.

Do not let anybody else tell you that. But term life insurance. The key is term life insurance, not cash value, not whole life, but term life insurance is the cheapest and it will do exactly what you needed to do. So I just want you to have the cheapest form of life insurance. You possibly can, that will take care of your dependents.

If anything were to ever happen to you. Then lastly, two other things that you can do for your family. If you have a family is make sure you set up savings and college funds, things like your five 29, for example, and then make sure you have proper health insurances, things like that. And by the way, if you're new to finance and you're just getting your money in order, we have a guide called the stairway to wealth that you can check out.

If you go to mastermoney. co slash resources, you'll find the stairway to wealth. And it's kind of a guide of step by step what to do and in what order to do this stuff. So if you're looking for that, make sure you check out the stairway to wealth. Now, between age 30 to 34, What is the average net worth and what is the median net worth?

Well, the average net worth is 258, 073. And the median net worth

is 89, 801. So that median net worth is pretty low for most people. I want you to be above that. Now, if you've just started getting your finances together, late twenties, that's great, you're doing a great job, especially if you had student loans, things like that. But I want you to try to strive to progress past some of this stuff.

Then between age 35 to 39, the average net worth is 501, 289. But the median net worth is 141, 200. So I do like that jump in that time frame where people are starting to earn more money. And that is the biggest jump we have had so far. Now let's take a look at the 40s. All right. So if you are in your forties, first of all, everything we've talked about thus far, if you have not started any of those things, start those things first.

When we talk about the twenties and the thirties, but then there's some other things that I want you to look at. And I want you to assess where you are. So first I want you to see what your wealth options are. What do I mean by that? What are the options that you have available to you? If you have some additional income coming in, what are some things that you can do with that money?

If you've always been interested in real estate investing, maybe that's something you could do. Are there things out there that you can take extra dollars and put them towards businesses or what are your interests there? Or do you want to just continue funding retirement accounts and then funding taxable brokerage accounts, things like that, maybe having a bunch of different tax efficient strategies.

Also, you have some other options here. If you've built a nice base, I want you to consider something like. Barista fire or coast fire. Now, what is barista fire? And what is coast fire? So barista fire in this got popularized because people would like quit their job and go work at Starbucks or at a coffee shop, for example, because they would enjoy that more than working in their day job.

But what barista fire is is say, for example, you built up a nice nest deck and maybe you have 1, 000, 000 invested right now in the market. And say, for example, you figured out that you need 1. 2 million in order to be able to retire. We're just using lower numbers here because I want you to understand how this works.

And let's say, for example, you need 1, 250, 000 invested in order to be able to retire. So if you had that 1. 25 million, then you could draw down 50, 000 per year on that portfolio. But let's say you already have a million dollars and you wish you could retire right now. Maybe you have a tough boss who came into play or your company's making a ton of changes and you're just not enjoying your job or your career anymore.

You're just But with barista fire, what you can do is you can take a part time job with something that you love and still be able to retire. You can live off that 4 percent rule that million dollars and have that 40, 000 coming in and all you have to do is make up the difference that 10, 000. So here's some great examples.

Say you love yoga, for example, what if you could become a yoga instructor, earn an extra 1, 000 per month, and in addition, you already have that nest egg in place. All of a sudden you're doing something you love every single day, and you don't have to work at the job you hate. So we have an entire episode on barista fire.

If you want to check that out now, coast fire is where you get to a point in time where you've invested your money over a timeframe, and if you never touched that money again, you never invested another dollar it's going to hit. Your fire number, meaning the number that you need in order to be able to retire.

If you want to figure out what that number is, by the way, the quick math is figure out how much you want to spend every single year in retirement. Multiply that number by 25. So if you want to spend 80, 000 a year in retirement, 80, 000 multiplied by 25 is 2 million. So that's how much money you would need in order to be able to retire.

That's the really quick back of the napkin math that you can do at any point in time. Also, in your 40s, continue to increase your income. This is a really prime earning year still, so that you can take those extra dollars, fuel the fire, and try to retire early. And statistically, your earned income goes down in your 50s, so making sure you maximize that earning potential in your 40s is really, really important.

Number two, I want you to focus on your health, because focusing on your health is really, really important at all ages, but especially as you hit your 40s. If you have not got your health right yet, you need to start today. So the book Rich Habits found that millionaires spend 5. 8 hours per week exercising.

It improves your focus. It improves your energy, allows longevity during retirement. So making sure you prioritize that health, your diet, all of those different things is really, really important. And then number three is ignore your peer successes. So you're gonna see a lot of folks out there who are becoming very successful.

Do not try to keep up with the Joneses in your 40s. That is going to put you Backwards when it comes to your wealth building journey. So making sure you don't fall into that wealth killer trap of trying to keep up with the Joneses is really, really important and ignore that lifestyle creep. So what is the average net worth by age when we are in our forties?

So from age 40 to 44, the average net worth is 590, 718. And the median net worth is 134, 700. And 30, which amazingly is lower than the median net worth of 35 to 39. Don't love seeing that then at age 45 to 49, the average net worth is 780, 923. And the median net worth is 212, 800. Now let's jump into the fifties.

All right. So the last group we're going to go through with some tips on what you should be doing during that decade is the fifties. And then we'll talk about some of the other decades on their average net worth and their median net worth. So when it comes to your fifties, I want you to be focusing on your risk level.

Think about your risk tolerance here. It might be time to make a change to your portfolio because your working days are probably going to be slowing down within this next decade here. And so I want you to make sure that you. are not in some super risky assets. For example, you're not just fully in crypto or something like that.

I want you to make sure that you have a nice portfolio that is going to sustain you throughout the rest of your life. So you really want to start thinking through that stuff and looking at your risk tolerance. So assessing your risk tolerance is one of the most important things. I also want you to.

Think about the changes in retirement. You know, retirement is a huge transition. It is something that you got to really think through what that's going to look at, like, and you're going to go from being someone who is accumulating wealth or saving wealth over that timeframe to someone who is going to be actually using their wealth and consuming their wealth.

So this is something where it is very hard to actually make that transition. So I just think about this, for example, you've been saving your money your entire life, and now all of a sudden you retire and it's time to draw down on that portfolio. That's got to be a difficult thing to do for the first time is start to draw down that 4 percent on that portfolio.

You know all the math, you've been educated over time, but at the same time, you still have to start taking action on this and you've been thinking about it for so long and now it's time to do it. It's got to be somewhat nerve wracking to have to do that. I want you to also think through like, Hey, what are my retirement days going to look like?

What am I going to be doing every single day? How am I going to fill my days? And then just make sure you're mentally and financially prepared for retirement. Also number three is I want you to simplify your finances. So get rid of debt. That is one less thing you have to worry about. I. really think that people should have their mortgage paid off by the time they hit retirement age.

They don't have that additional debt. In addition, debt has a place, but I prefer no debt in retirement. I'm just not a person who wants to have additional risk in retirement. And then stacking up and making sure that you have a one year emergency fund is also something I believe in when it comes to retirement age.

So six months for most people when you're in your working years and your accumulation years. And then once you hit that retirement age, I want you to have one to four years, at least in cash or more if you want to. That are going to allow you to be able to kind of weather any storm. Say, for example, if the market goes down and we have like a great recession at some point in time, say you had four years of cash, you could use two years of cash to be able to pay for your lifestyle, and then you can start drawing down your portfolio again, it just kind of de risk.

Your whole situation. So if you make enough money and you can build up some cash reserves, I would love for most people to do that because that really, really is helpful. And that's something that I am making sure I'm even thinking about now. And I'm in my early thirties, but I'm still thinking about that now on how I can build up that cash reserve over time.

So that is something where I'm looking at that because cash is security. And then just trim all the fat. Get rid of anything that is, you know, sucking out life from your retirement. Get rid of things that you don't use anymore. Make sure you kind of just reduce the amount of things that are around you that you don't need.

And then you can invest those dollars instead, just to give you extra security and remove that financial stress. So what is the average net worth in media net worth by age in your fifties. So between age 50 to 54, it is 1, 132, 532. Is the average net worth the median. Net worth is way too low, $272,800 between age 55 and 59, the average net worth is $1.442 million, and the median net worth is $320,700.

That my friends is way, way too low, so making sure that you are beating these median net worth numbers, especially as you progress is super, super important. Now let's look at the median net worth between the sixties and the 70. So between age 64, the median net worth is $394,010, and between age 65 to 69, the median net worth is $394,300.

Between age 70 to 74, the median net worth is $433,100, and between age 75 to 80, the median net worth is 316,000. dollars. Now I want to kind of talk through this a little bit as well is there are some changes in the real household net worth over this time frame. And I really want to see what the changes in these numbers are.

So the amazing thing here is that folks below age 35, their net worth increased 143% Over this timeframe from the last time. So from 2019 to 2022, 143% increase. Age 35 to 44 is 28% increase. Age 45 to 64 is a 27% increase. Age 55 to 64 is a 48% increase. And age 65 to 74 is a 33% increase. 75 or more is a 14% increase.

So for everybody, it's a 37% increase. In net worth when it comes to media net worth, but age 35 and below had the highest increase at 143%. So congratulations. If your net worth is increasing over this timeframe, that is absolutely amazing. I love to see this stuff because that means we are all working towards trying to build more wealth.

Even when people out there are saying that this is a terrible economy, we are at least working towards building more wealth over this timeframe. So. This is some amazing news for a lot of different people here. If you have been working really hard on, on increasing that at worth, I congratulate you because that is absolutely amazing.

Now, one of the things I want to talk about before we wrap this episode up is how you can automate your net worth. And the way that I automate my net worth is with a tool that I have been using for over a decade now, and it's completely free, which is why I love this tool. It used to be called personal capital is now called empower.

So in empower, you can just link up all your accounts and you can put in your house and stuff like that in there if you want to. And then it will track your net worth for you automatically. Now, the second way to do this is if you don't want to use the technology and you just want to put it into a spreadsheet or something like that, you could put all your assets minus all your liabilities and have a net worth statement there.

You just have to update it every six months to a year in order to make sure that it is up to date so that you have that financial scorecard. This is why it is so incredibly important to be tracking your net worth. Every single person listening to this episode should be tracking their net worth because I think it is the most powerful scorecard that you can have out there.

It is your financial scorecard. It is really, really important for every wealth builder out there to have that available to them and be looking at their net worth. So that they can see it increasing over time. Now, I don't check this every single day or week or month. I check my net worth maybe every six months to a year.

Because if you're checking every single day, markets are going to fluctuate. You're going to see some differences over that time frame. You don't want to get discouraged on daily checks. Instead, I prefer to check it every six months or every year. Really every year is probably around when I get around to it.

When I go to my year in money checklist, which is, uh, something that we talk about here a lot as well. So if you guys have any questions, make sure to hit me up at master money co on all the different socials. And I cannot thank you guys enough for listening to this episode. If you guys have any episodes that you want me to do, make sure to shoot me an email because I read every single one of those emails and.

We've actually made a few episodes in the last couple of months based on emails that we've gotten from people. So if you have an episode that you are interested in us making, make sure you get on that master money newsletter, and then respond to that newsletter and tell me some suggestions if you want me to make an episode and we can talk about that.

And, or if you have another question, it can go on a money Q and a episode as well. Thank you guys so much for investing in yourself because that's exactly what you're doing when you listen to this podcast is you are investing. In yourself, which like we said at the top of the show is one of the most important things that you can do.

I appreciate each and every single one of you. Our entire goal is to bring you as much value as we possibly can. And so I'm so excited to have you along for this ride as we continue to try to bring you as much value as possible. Thank you guys again for listening and we will see you on the next episode.