- The assets of each person usually vary according to their age. Knowing how much you should have on average would help you calculate a budget, estimate the expenses you could have and calculate long-term goals such as retirement
Throughout life, the assets of many people tend to vary. Knowing the expected range for each stage can allow you to calculate a budget and calculate the expenses that can be derived from it.
Net worth is the total value of all assets after subtracting your liabilities. These assets can include cash, property, vehicles, antiques, fine jewelry, insurance policies, investments, or anything that can be liquidated for profit. In contrast, liabilities include unpaid student loans, credit card bills, mortgage balances, or any payment that is owed to a person or business.
Between 2016 and 2019, the median household net worth increased 2% to $748,800 while the median household net worth rose 18% in the same period to $121,700, according to the Federal Reserve
According to 2019 calculations, the median net worth of a person under the age of 35 is $76,300. From there the average net worth increases within each age group.
For example, between the ages of 35 and 44, the median net worth is $436,200; in the group between 45 and 54 years old, the value increases to $833,200 dollars and reaches $1,175,900 dollars for the sector of adults between 55 and 64 years old.
Net worth rises further to $1,217,700 for people ages 65 to 74, and then drops to $977,600 for people age 75 and older.
Regardless of what stage you’re in and your average net worth, you’ll need to base yourself on your financial, personal, and career goals. If you want to retire early, you probably want to grow your net worth quickly. But if there aren’t many goals that require substantial assets, a lower net worth is probably required.
The patrimony and the expenses detached from it can vary according to the area where you live. In some cities the costs of living are so high that salaries are insufficient to pay rent, food and other necessities.
In contrast, in other places it is possible to stretch the money to the maximum and a million dollar estate could last for many years.