If you read personal finance articles, you will constantly see that most Americans don’t have enough to retire. That thought can be scary as you’re looking at your own finances. However, the real question is, what is the net worth of the average American your age? Remember, your net worth is the total value of your assets less any debts you may have. In this article, I am going to break down the average net worth by age, but also discuss how adding real estate can help grow your net worth in the future.
18-24-Year-Olds
Since they are just beginning their journey into adulthood, they don’t have a big net worth. The median is just eight thousand dollars, not surprising because a lot of them are in college or starting low-paying jobs. If you are in this age group, I recommend getting approved for a credit card in order to build your credit and pay it off every month. This will set you up for your future investing endeavors.
25-29-Year-Olds
At this age, your average net worth actually goes down! This is largely due to student loans starting to come due and credit card bills beginning to rack up. Your average net worth at this age is seven thousand dollars. This is the time to start dabbling in investing. Even if it is just investing $100 into the stock market, you need to start following what is happening with the economy. Also, you should pay off any outstanding credit card debt you have to avoid having bad debt hold you back in years to come.
