How much money do people between the ages of 35 and 44 have, and where do they stand now?

Average net worth for ages 35 to 44

The median net worth of Americans ages 35 to 44 is $135,300, according to the Federal Reserve’s most recent Survey of Consumer Finances. In simple terms, this means that half of the households in this age group have less than $135,300 in assets after deducting debt, and the other half have more than that.

The Fed also provides average values ​​for the different components that contribute to net worth. Homeownership is by far the largest driver of wealth for this group, followed by investments, especially in mutual funds and ETFs. On the other hand, the biggest barriers were mortgages, student loans, and car payments.

You may notice that the Fed’s average reported net worth does not line up precisely with its average assets and debt. Typically, you subtract liabilities from assets to calculate net worth. However, if you did it using the Fed’s numbers, you would get $170,020 ($310,400 – $140,380).

The reason for this discrepancy is that not every family has assets and debts at the same time. The Fed calculates each broker individually: including net worth everyone households, while the average asset and debt figures reflect only those who own property in each category.

Why are some 35- to 44-year-olds moving forward and others falling behind?

Net worth can vary greatly from person to person. At the top are those who inherited property, businesses or other assets. Then come homeowners who have enough income to save and invest. Finally, there are renters juggling bills and debt while trying to survive.

Some differences stem from factors beyond our control, such as family wealth, education, or inherited opportunities. But others depend on the choices we make and how we manage money day to day.

Key factors that boost net worth include earning more, spending thoughtfully, and using debt strategically. On the other hand, renting instead of owning, low or stagnant income, overspending, and neglecting long-term investing can all hold you back.

How to boost your net worth before age 45

Net worth can grow in two ways:

1. Increase income and invest it wisely
2. Reduce debt and use it to your advantage.

The first step is to increase earnings and curb spending so that you have the funds to pay off high-interest debt and make monthly payments more manageable. With any extra money, experts recommend creating an emergency fund that covers three to six months of expenses, getting any necessary insurance, then automatically investing the remaining money in low-cost ETFs, and tracking the stock market through tax-advantaged accounts.

“The simplest way to grow your net worth is to contribute to an employer-sponsored retirement account, whether that’s a 401(k), SIMPLE IRA, 403(b) or something else,” said Peter Lazarov, financial advisor and chief investment officer at Plancorp. “Saving at least enough to earn what suits your employer means you instantly double your money.”

If you’re renting, it may also make sense to save for a down payment on a home. In theory, building equity in assets that can grow in value is smarter than paying someone else’s mortgage. But not everyone agrees. Critics argue that you can secure better returns and increase your net worth further by investing the extra money you spend on homeownership in the stock market instead.