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Average Net Worth by Age [and 10 Celebrity Net Worth Revealed]

How does your net worth compare to the average as well as the rich and famous?

How much should you have by your 20s, 30s or your 40s? What’s the average net worth by age and what are some ways to increase your net worth fast?

I’m a numbers nerd. Gotta admit it! I love following data like net worth and income. I was shocked when I saw a recent report by the Federal Reserve on average net worth and had to dig a little deeper.

In this video, I’ll explain net worth and give you an easy formula to follow. Then we’ll look at net worth by age and reveal the fortunes of 10 celebrities at each decade to see how we all compare.

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average net worth by age comparison

What is Net Worth?

We’ll get to those net worth goals for each decade of your life and how to build yours but first, what is net worth and why is it important?

Net worth is your financial wealth taking into account everything you own and subtracting everything you owe. It’s your assets which includes investments, savings, the value of your business, real estate and anything else you own that has financial value. From this you subtract your liabilities, that’s all the debts you owe including loans, mortgages and credit cards.

Why is Net Worth Important?

Your net worth is important because it helps you understand your financial health. A lot of people get caught up in their income and their ability to spend but there’s a huge difference here between net worth and income.

All you have to do is look at all the phony-rich, the people making lots of money but that owe millions more to know that income isn’t wealth. You could have a $200,000 a year income but spend it all on leasing fancy cars, expensive vacations and designer clothes. At the end of the year, you really own nothing and need to keep making that money to keep up the lifestyle.

On the other hand, someone making a respectable $50,000 a year could be investing their money, using part of it to build an online business and just generally living within their means. They’re growing that assets side of the equation with those investments and businesses. It won’t be long before the assets start churning out an income, supporting a lifestyle that doesn’t depend on working all the time.

How to Calculate Net Worth

Calculating your net worth is also going to give you something to reach for, a measure for your financial goals. I’ll show you the average net worth by age and some ways to build wealth at each decade of your life.

So we know calculating your net worth is just a matter of adding up all your assets and then subtracting all your debts. That means figuring out how much your home is worth, how much you have in cash and savings and investments. If you have a side hustle business, that has value beyond just the income it produces so you also include that.

Then you add up all your debts, all the loans, credit card balances and your mortgage. The sum of all your assets minus these debts is your net worth.

Three Ways to Increase Net Worth

Knowing this, and we’ll see it when we look at net worth by age next, there are really three ways to increase your net worth. First, you can just work on paying off your debts. Not having much in assets isn’t a problem unless you also owe tens of thousands on credit cards. Paying off those credit cards can mean a positive net worth even if your assets don’t increase.

You can also invest your money in stocks, bonds and real estate. The money you invest in these is going to grow each year, increasing your net worth even if you don’t do anything else. It might not be a huge increase or the fast-track to riches but it’ll get you there.

The third way to build net worth, and understand you should be doing all three of these together, but this third way is my favorite. Is to start some kind of a side business.

A lot of the famous celebrity net worths we’ll look at were made on acting or singing fame but the real fortunes were all made on a business idea. My online business has grown income by an average of 84% a year to a six-figure annual payday. That’s many times above the annual return you’ll get on other investments and can create real legacy wealth fast.

Average Net Worth by Age

Now let’s look at some averages for net worth by age and some of the celebrities that put us all to shame. Here’s the table made with data from the Federal Reserve for U.S. households and we’ll go decade by decade in a bit. What you see here are the blue lines which are median net worth and the yellow is average net worth.

average net worth by age america
What is the Average Net Worth by Age in America?

Now I have to go all math nerd on you for a minute. Median is the number where half of everyone is above and half are below. Average, the number we’re used to seeing, is all the data and then divided by the number of households.

Just a few billionaires in a set of households can make the average look way higher than the median and really blow the whole thing out of proportion. So here, I want you to look at the blue lines, the median net worth where half the households have more and half have less. That median number is just a truer ‘middle’ of the road net worth.

Net Worth in Your 20s

So if you’re in your 20s and don’t have two nickels to rub together, don’t feel bad because you’re not alone. The median net worth here for those 25 to 29 years old is just under $9,000 which actually doesn’t sound too bad considering the level of student loan debt most people have.

In fact, most people’s net worth in their 20s is negative with more debt owed than assets. That’s fine. Focus on that long-term plan to grow your assets. Look into some of the side hustles and business ideas we talk about on the channel. Contribute as much as you can to your company’s 401K account and a Roth account if you have any money left to save.

At this point you probably won’t have much money unless of course your name is Kylie Jenner, the 21-year old cosmetics entrepreneur of the Jenner/Kardashian family.

kylie jenner real net worth
Kylie Jenner Net Worth: Is She a Self-Made Billionaire?

Kylie’s net worth is estimated around $300 million…yeah, not a billionaire but not doing too bad either. That billionaire estimate that shocked everyone last year was from a Forbes article that mis-valued her cosmetics company at $800 million when in fact it’s probably worth less than half that on normal valuation measures. That said, it’s still a nice chunk of change for a Gen Z kid…I’ll leave it to you whether she’s self-made or not.

But maybe you don’t know a thing about cosmetics, how’s your singing voice? Justin Bieber, age 25, started right here on YouTube uploading cover songs at age 13. After getting discovered and signing a record deal, he hit his first million by age 16 and is now worth over $285 million.

justin bieber net worth
Justin Bieber Net Worth

Net Worth in Your 30s

By the time you reach 30 years old, the common goal is to have half your salary as your net worth. We see here the median is around $29,000 for those in their early 30s rising to almost $40,700 by the late 30s.

So half your annual salary as a goal. That means if you make forty-grand a year, you should aim to have about $20,000 in net worth by this point. That’s within reason for investing. Let’s say you invest $100 a month starting at age 23 and earn 8% on your investments. That grows to over $25,000 by age 35 and can work with just about any budget.

If you’re getting started late and still have that negative net worth in your 30s, it’s still not too late. With two-in-three families saying they couldn’t cover a $1,000 emergency expense, you’re definitely not alone. But you need to get started.

If you have trouble saving money, start by saving up enough for a down payment on a house. A lot of people will tell you a home isn’t an investment but in my opinion, it’s one of the best wealth builders for people that have trouble saving and investing otherwise. That home is a forced savings plan with those monthly payments helping you to build up equity in the value. Even if you can’t manage to save anything else, that’s going to be a good start way to build your net worth.

Of course, you could be like young Mark Zuckerberg and start a little internet company called The Facebook from your college dorm. In which case, at 34 years old, you’d now be worth $50 billion with over $175 million in real estate and land. Zuckerberg actually created his first company Intelligent Media Group to build an AI music player before Facebook.

zuckerberg net worth
Mark Zuckerberg Net Worth

AOL and Microsoft both wanted to buy the company and recruit young Zuck but he turned them down to go to college…where he would later drop out and become a zillionaire!

There’s also diva Beyonce Knowles, age 37 and estimated net worth over $500 million. Beyonce started with the group Destiny’s Child in 1990, before going solo spreading her wings as an actress and fashion designer and becoming the Queen Bee.

beyonce net worth
Beyonce Net Worth

Net Worth by Your 40s

The goal by your 40s is to have a net worth of twice your annual salary. We see here the median net worth is from about $40,000 to $87,000 for those in their early- and late 40s but that’s well below this goal.

This is where we really see people start falling behind their net worth and retirement savings goals. For example, we see from research by Fidelity that people in their 40s have an average of $91,000 in their 401K accounts but many probably still have student loans or other debts that are bringing that savings down to the net worth median we see in the other graphic.

If you’ve been saving and investing regularly then you might be doing ok but most people are pretty far behind at this point. Making up for that lost time is going to mean starting your own side hustle or online business. I didn’t start my blogs until I was 38 and just got into YouTube after turning 41. I had a decent nest egg before but nothing like what I’ve been able to build with the online assets.

I’m going to leave a link here to our five-video build a blog series. In it, I show you step by step into starting a blog from picking a topic to making blogging easy. I’ll show you how to build your blog and reveal the five income sources I use to make over ten grand a month.

Now if you’re Leonardo DiCaprio, you don’t need an online business. Now age 44, DiCaprio started in TV commercials as a kid before moving on to the big screen. He’s built a $250 million net worth but only just won his first Oscar in 2016…poor Leo.

dicaprio net worth
DiCaprio Net Worth

If you’re a little bigger than Leo, you might consider becoming a pro football player and wrestler like Dwayne ‘The Rock’ Johnson to amass a $280 million net worth. The Rock got his first TV break as an alien on Star Trek Voyager and the rest is history.

the rock net worth
Dwayne ‘The Rock’ Johnson Net Worth

Net Worth by Your 50s

The standard net worth goal by the time you reach 50 is four-times your annual salary and this is where people really start freaking out. With an average income around $36,000 that would mean a net worth goal of about $144,000 which is above even the medians we see here from a hundred and five thousand to $137,000 for people in their late 50s.

Top it off with the fact that a lot of people in their late 40s, early 50s have kids going to college or are still paying off those college loans. Don’t neglect your own retirement savings to pay for your kids college costs.

The biggest risk I see is people get so far behind this average or their goals and they just give up. It’s easy to get frustrated or disappointed when you see the goal is to have $140,000 and you haven’t even started.

Don’t give up! Understand that these are only general ideas for net worth. Just because you don’t have a hundred and forty grand doesn’t mean you still can’t build a nice nest egg before you need to retire.

Or you could get a multi-million deal from Marvel to lead their super-hero extravaganza. Robert Downey Jr, now 54, has been acting since the age of five when he was in his father’s production of Pound. With more than 91 acting credits, he’s worth an estimated $300 million which is still less than three percent the $12 billion net worth amassed by his super-hero persona Tony Stark.

robert downey jr net worth
Robert Downey Jr Net Worth

Topping our list of net worth all-stars is Jeff Bezos with an estimated $150 billion…wait, $114 billion after his much publicized divorce. At 55 years old, Bezos started Amazon from his garage in 1994 and was a billionaire by age 34.

jeff bezos net worth
Jeff Bezos Net Worth

Net Worth by Your 60s

As you reach your 60s, the common net worth goal is to have six-times your annual salary or around the median here between $168,000 to $224,000 for those in their late 60s.

At this point, your net worth goals should really be based on your needs in retirement. The idea is to replace about 85% of your pre-retirement spending through savings and social security. So if you’re spending about $55,000 a year before retirement, that would mean aiming for around $46,000 from investments and social security afterwards.

Don’t forget though, you can still earn money even in retirement and not lose your social security benefits. If you’re at full retirement age, you can make up to $46,920 a year without losing any of your social security benefits. That can easily be a part-time online business like blogging or affiliate marketing to help pay the bills.

One person I don’t think is worried about paying the bills is Oprah Winfrey worth an estimated $3.5 billion. Now 65, Oprah rose up from a local radio reporter to TV stardom and then to a true media mogul. An inspirational story, she’s become an advocate on humanitarian issues donating over $400 million to charity groups. She became a millionaire at 35 and owns real estate as well as a position in Weight Watchers.

oprah net worth
Oprah Net Worth

But that’s only nine celebrities and their net worth…who am I missing? Oh yeah, a kid that didn’t even show up on the age chart because he’s only seven years old.

Ryan Kaji of Ryan’s Toy Review here on YouTube. Forbes estimated last year the family-produced channel made over $22 million. Besides sponsorships from toy companies and advertising on YouTube, Ryan is now selling his “Ryan’s World” line of toys through Walmart. With its 19 million subscribers and creating videos since 2015, I couldn’t find a net worth estimate but it has to be over $50 million.

ryans toy review net worth
Ryan’s Toy Review Net Worth

If you’re serious about building your net worth then click through to that build-a-blog video series. It’s completely free and will get you started with everything you need to make money including an easy-to-follow checklist of everything in the five videos.

Don’t get too caught up in average net worth by age and certainly don’t stress about these 10 celebrity net worth stories. While net worth is a number, wealth is much more subjective and you don’t need millions to be happy. Focus on what makes you happy and paying for the little things.

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