What's the average net worth of a 40 year old?

Personal Capital surveyed consumers to see how their net worth breaks down by age, and it found that among 40-somethings, the average net worth was $756,000. However, when we look at median net worth for that same age group, that number falls to $170,767.

fool.com - This Is the Average 40-Something's Net Worth. How Do You Compare?

What should be placed in front of main door inside?

Your entrance gate should have a threshold, (wood or marble), as it is said that it allows positive energy to pass through and absorbs negative...

Last updated Jan 24, 2019

What color is mystery?

black Many ancient cultures believed that black was "the color of mystery and of the mysterious ways and wisdom of God," historian Ellen Conroy...

Last updated Aug 4, 2019

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. Once you reach your 40s, you may have more wealth to your name.

Key points

Your net worth is your total assets minus your total debts.

There are steps you can take to boost your net worth, like improving your job skills and investing your money over a long period of time. Your net worth is something you may not fixate on so much during the first half of your career. At that point, you may be more inclined to focus on things like paying off your credit cards and saving up money to buy a home. But once you reach your 40s, the concept of net worth may become more relevant to you. And you may be curious as to how your net worth compares to that of your contemporaries.

What does net worth look like for 40-somethings?

If you're not familiar with the concept of net worth, it's basically your assets minus your debts. Let's say you own a home worth $500,000 and have $100,000 in savings. But let's also assume you owe $300,000 on your home. That would leave you with a $300,000 net worth. Personal Capital surveyed consumers to see how their net worth breaks down by age, and it found that among 40-somethings, the average net worth was $756,000. However, when we look at median net worth for that same age group, that number falls to $170,767. What this tells us is that median net worth is a far more representative figure for 40-somethings. When you have an average that's way higher than a median, it's generally because a few higher figures drove the average up. So in this case, perhaps some of the people surveyed by Personal Capital in their 40s happen to have a net worth of $2 million or $3 million. That's apt to drive the average upward, which is why you're better off relying on the median as a measure of how 40-somethings are doing.

Why don't I remember my childhood?

The good news is that it's completely normal not to remember much of your early years. It's known as infantile amnesia. This means that even though...

Last updated Jun 14, 2018

Who owns the 10 Commandments?

But the Ten Commandments monument is based on the King James Version of the Bible. The old King James translation is part of the public domain....

Last updated Sep 15, 2018

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Are you pleased with your net worth?

Maybe you're happy with your net worth but want to see it keep growing. Or maybe you now realize that your net worth lags behind the median net worth for 40-somethings, and you want to do better. The good news is that if you're in your 40s, it means you still have many more working years to earn money and build wealth. But a few key decisions along the way could lead you to a higher net worth. Those include: Boosting your job skills to land promotions and higher earnings to pad your savings with Investing money you aren't using or don't need in the near term and holding your investments for many years Taking advantage of accounts like IRAs and 401(k)s, which offer tax breaks for savers Avoiding unhealthy debt, which can monopolize your income, cost you money, and make it difficult to build more savings Ultimately, net worth is something that tends to grow with age. But there are definitely ways you can be proactive in boosting yours. In fact, it wouldn't hurt to set a goal for yourself so you have something you can work toward. Just make sure your goal is realistic, though. If you have a current net worth of $150,000 and you're 42 years old, doubling your net worth by age 45 may be a challenge. But do you have a better chance of doubling your net worth by age 50? Absolutely -- especially if you stick to the advice above.

fool.com - This Is the Average 40-Something's Net Worth. How Do You Compare?

What are the four steps to manifest?

Most people find their lives completely out of order. It's not that they don't want better. It's because they really don't know what it is they...

Last updated Sep 5, 2019

What does Lord Krishna wants us to do?

So yes, Krishna wants us to be happy. His love is our only qualification, His causeless love. He descends into this world again and again and again...

Last updated May 5, 2020

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What is the number one killer on earth?

Heart disease is the leading cause of death for both men and women. This is the case in the U.S. and worldwide. More than half of all people who...

Last updated Dec 22, 2018

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What kills fleas permanently?

Choose an insecticide that contains both an adulticide (kills adult fleas), such as permethrin, and an insect growth regulator (kills the eggs,...

Last updated Jun 3, 2021