Finding the median net worth by age is a fairly simple process. To begin, we will look at income statistics gathered by a reputable source, the United States Bureau of Labor Statistics. The report I’m using is the most recent income report which can reveal the median net worth by age. The survey conducted used about 200,000 people. We can reliably create a save mediate net worth number from that large of a sample.
Finding the Median Net Worth by Age (Rather, What It Takes to Be Average)
There’s a large problem with trying to find the median net worth by age. I mean, sure, you can do it easy enough. But the number won’t help you much. Reason being, there are a lot of poor people out there and not a lot of rich people. This skews your median number quite a lot. For example, let’s think of your friends. Let’s guess their net worth’s…
See, in the world, only a few people really get ahead of the pack. Most people are poor. But if you’re wanting to know the net worth of others, I’m guessing you want to get in front of the pack. By examining the lives of everyone, you’ll probably feel content with where you’re at. You’ll realize you’re doing better than most people. After all, the median net worth of your friends above is just $14,000. You’re friends are likely about the same age. That puts the median net worth by age at just $14,000. You can do better than that. Even though you should really just be examining Mark. What did Mark do to get so much money?
This is why the median household income in the US is low – around $50,000. Yet wealth-minded people make far more than that. It’s not wise to compare yourself with a median number. After all, it doesn’t take much money to be beating the median net worth by age in the world – there are a lot of poor people that bring down the number.
At worst, you should examine the average net worth by age group (click the link to see my findings).
For Fun, Here’s the Average Annual Income by Age Group in the United States:
Ages 18-22 = $13,000
Ages 23-27 = $31,000
Ages 28-32 = $44,000
Ages 37-41 = $57,000
Ages 42-46 = $61,000
Ages 47-51 = $65,000
Ages 52-56 = $58,000
Ages 57-61 = $60,000
Ages 62-66 = $51,000
The numbers were gleaned using the most recent data from the Bureau of Labor Statistics. These numbers are what you need if you’re just wanting to make sure you’re not falling behind the pack in terms of income. After all, no one wants to have less money than their friends. But this is silly. If you’re reading this post, you probably want to make far more than $51,000 at retirement.
For determining the median net worth – I recommend against doing that. Instead, set an income goal for yourself. Look to other people in your chosen profession. Look at the top achievers. How much are they worth? How can you get there yourself? These are the questions to answer. No one should aim to be just average.
Forget about median net worth, forget about average net worth. Instead, create a net worth goal and aim to achieve it. I for one really want to become a millionaire very soon. That’s my goal.