Many Americans are curious to know their net worth. There are different ways to evaluate your net worth, such as by age group or by location. Keep reading for some tips on determining your net worth.
Average Annual Income by Age Group in the U.S.
According to the Bureau of Labor Statistics, the following are the average annual income rates by age group for men and women in the U.S. based on data from 2016:
- Ages 16-24: $25,272 (women); $26,624 (men)
- Ages 25-34: $36,660 (women); $41,288 (men)
- Ages 35-44: $43,628 (women); $52,364 (men)
- Ages 45-54: $43,472 (women); $55,900 (men)
- Ages 55-64: $42,224 (women); $57,304 (men)
- Ages 65 and older: $38,948 (women); $51,584 (men)
Why You Shouldn’t Focus on Being Average
Many people are not only curious about how their net worth stacks up, but are also eager to get ahead of the game. If that’s the case, finding the median net worth for your age group isn’t that helpful. There are more low income people than there are wealthy people and this skews the median quite a bit. If you want to get ahead of your peers and earn above the median, then your focus should be on those in your age group who are above average. For example, look at the following group of fictitious friends and their estimated net worth:
- Carl: -$2,000
- Jim: $6,000
- Kim: $14,000
- Suze: $71,000
- Mark: $890,000
By examining this group, you’d probably feel good that you’re doing better than most. But it doesn’t take much to beat the median because there are a lot of people bringing it down. You would be better served to focus on Mark in this group. Ask yourself what he did to get there, how he earned so much and jumped to a top-earning spot in his age group.
Calculating Your Net Worth
During our research, the Shnugi Net Worth Percentile Calculator stood out as the most reliable net worth calculator online. The creator of this tool uses the Federal Reserve’s Survey of Consumer Finances as a database of information. The Shnugi Net Worth Percentile Calculator helps you view how you stack up against people in a set age range or people the same age as you. It is a helpful tool for gaining an understanding of your current financial standing.
Global Perspective: Comparing Your Net Worth Worldwide
Another way to look at your income is by location instead of age. If you’d like to evaluate your income based on where you live, you can visit the Global Rich List. This calculator doesn’t look at age, just where you live and how much you make. Seeing how you stack up against everyone else on the planet is an interesting way to view your income and can give you a very different perspective on things.
One way to know how you stack up against your peers as far as income is to use a net worth calculator tied to your age group. When using a net worth calculator, it’s important to remember that the perspective might be skewed due to the number of people bringing the median income level down. Another way to view your income is to compare by location and see how you stack up on a global scale. You might also be interested in our other article: Income Percentile by Age: How Do You Compare?