Average Net Worth of a 40 Year Old! (2023 Edition)

[@jameswilkerson2785]

I am 44 have a net worth of about 1.4m. Make about 85k a year as a factory worker. About 750k in retirement accounts and the rest in real estate. I contribute 22% of my base salary to a roth 401k and get a 18% match/contribution from my employer. I will retire at 55.

[@anthonyb56]

What Factory do you work at?

[@jameswilkerson2785]

Honda's alabama auto plant

[@StefanieLegacy]

18% match is amazing

[@blockaderunner]

@@jameswilkerson2785 is Mazda there too?

[@jameswilkerson2785]

@@blockaderunner No mazda that I know of Alabama has Mercedes,Honda,Hyundai,and Toyota plants.

[@c.marquez8821]

The answer is at 5:25. You welcome

[@Adventure5619]

I will be 44 in a week. Sad but if we didn’t have the pandemic and been laid off I would of never got on you tube and changed my life. I lived pay check to paycheck had a new car every 3 years. Lived in a fancy apartment had a wife that did the sesame. At 41 I watched these guys as I was searching resume tips and interview skills not sure how but I clicked on their video about 401k retirement by age and it just clicked I was addicted and decided it was time to change. I landed a better job then I previously held. I sold everything. Sold my 2019 hellcat and with the cash difference bought a used 2004 Toyota sold all my furniture. Divorced my wife as she did said I was crazy and she wanted no part of a lifestyle change her Philosophy was similar to mine I could die tomorrow might as well live it up. So after divorce just went on a mission my goal is to get 100k net assets. I was straddled after divorce with 40k in debt but I trudged on. I am happy to say 2023 as of today in 2.5 years I got my net worth to 100k. This year I was already able to put 6500 into my Roth and have my 401k set to 30% of my income. The only debt I have left is student loan debt. The sacrifices I had to make were intense and I lost alot of friends that were honestly not real friends but I can happily say if I stay on this path I finally have a retirement goal. Thank you!!!

[@elliotjames5172]

Was your wife really hot?

[@diffizzle8630]

Damn man that’s awesome! Keep going bro, you inspiring me to keep at it

[@SweetPotata10]

Good for you! You’re a great example that it’s never too late to start over and succeed.

[@Adventure5619]

Thanks guys. It was tough very tough. My whole story of what I did would make a novel the sacrifices the ups and downs it was probably the hardest thing I have ever done in my life. However, I am so happy I am don’t even care to chase the Jones any more. Like my whole life I was obsessed to play the part that I needed to be successful 600 dollar watch high end jeans and shirts . Sports cars new every 3 years. Fancy trips all over the world yes I have some memories but I lived in a constant threat of what happens if I lose my job how much longer do I have to work and instead enjoy life.

[@sunnyd4734]

Tremendous success story and you're making all the right choices. I'm 57 and have always lived way below my means due to aggressive investing. Keep doing what you're doing because you'll be shocked at how quickly the next 20 years go.

[@TheJeanean]

Welp. Just did the math and now I’m about to enter into spiraling depression. 😒

[@ocalaeyeguy]

Cool. I’m 45 w/net worth 5-6x the top 10% number……. Been saving since 20’s. ❤. Thanks guys for the perspective and for helping me realize I’m on the right track!!!

[@jimv77]

I am 45 and according to this I am in the top 10% in net woth....though it really doesn't feel like an accomplishment. Eggs at $5 a dozen is still expensive. Been eating a lot of chicken and potatoes in 2022.

[@mightymouse9001]

Only because of avian flew killing off over 40 million chickens. Prices will come back down on eggs. Aldi currently has those eggs where they keep the chickens in 1by1 foot cages @ $4.79, while the Pasture raised eggs are only $4.99. Once you go to the ethical option and taste the difference in quality you won’t want to go back. Well maybe when they go back to $0.89 a dozen… But in the mean time treat yourself to the premium eggs!

[@Zorlig]

Yeah it's not much of an accomplished, 1M invested at 40 is still the target to hit!

[@TheMaxx111]

This is the disgusting thing about government spending and inflation. You try to save for retirement and the government steals your savings by printing money.

[@sunnyd4734]

I'm 57 and remember when bread was 39 cents a loaf. Food has absolutely gone through the roof.

[@albundy7794]

I'm 42, according to this I'm in the bottom 1% in net worth, and I thank my lucky stars that ramen is somehow still only 25 cents a pack.

[@o0usf0o]

39 with 575k net worth. Maxing out my 401k and Roth! Also contributing to two brokerage accounts. Hopefully reaching fat fire by 55.

[@anaa03899]

Way to go

[@matthewkearney4389]

Thanks for the video. Just some constructive criticism, the title and thumbnail imply this is for someone that is just hitting 40 but the data presented is for someone in their 40’s.

[@jg2611]

Do WHAT you can, WHEN you can.

[@tylerconlon1990]

I’m 33 maxing out both Roth IRA and Roth 401k @ 60k dumping 6k into IRA and 20k into 401k I can’t imagine getting close to 1/2million by age 40

[@IanMcD204]

If y'all could give an alternative to the income times age formula (divided by ten) for those who have had a sudden raise in income but have been out of the workforce (think getting a law degree and going to a law firm, or getting an MBA, etc.), that'd be useful. Thanks. Love the content.

[@SweetPotata10]

One of the data source is DQYDJ and that is household net worth.

[@justmythoughts2786]

I’m 55 and have 10$

[@ryang1195]

These guys are great 👍🏻

[@StefanieLegacy]

When you all are talking about NW for these examples does that include value of the primary residence minus liabilities related to it? Or are we talking invested or investable assets?

[@mzollnerable]

Learning the value of the difference of a want and a need MUST be learned, taught, instiiled, described, shown and flat out explained, for any comprehension of financial understanding as well as stability! If you can't afford it, don't buy it!

[@adambrooks7423]

Age x income/ 10 seems meaningless. It doesn’t take into account your student debt, work history, income history, if you’ve been married and your wife works or stays home, if you have zero kids versus having 5 kids etc. There’s a lot more that goes into this than what you earn right now and your age. Also, if you turned 45 in 2011, your investments performed totally differently than someone who turned 45 in 2021. This broad brush crap is only good for making some people feel terrible and a few feel great while lots of these circumstances are out of their control.

[@troboboulware8518]

Turned 40. Really happy with where we're at financially but....I have 3 children who will be turning 16 in next 1, 3 & 5 years. So not wanting car purchases, car insurance and college to de-rail us. Wondering if I need to not necessarily take the foot off the gas but change my strategy so this next decade doesn't set me back

[@rockystaatz521]

I know very few that can do it & many more who don’t want to try

[@benjaminsgirls]

How should I value my house in net worth? What my tax value is, what it cost me to build and what I think I could sell it for are wildly different.

[@marcusarelius]

What does Zillow say?

[@moe-df9qx]

i started investing @42 i feel soooo behind every channel alwayz talks about aboit 20-30's it gives me alot of angst

[@vicentecabrera9245]

I make 80k at 24. Have 80k net worth. A little behind according to the formula, but not too far behind.

[@Chew5219]

Is that by household or each individual?

[@arstout]

Individual

[@jjoven1225]

If married, both spouses combined. In the eye or IRS and anything in financial world, married people are considered one

[@mikelentz833]

It's household. They reference DQYDJ which states that these figures are expressed by household.

[@AT-hs9nf]

Sitting at 42 and in the top 10% still seems like I need to do much more 🤦‍♂️. Qs - do you actually consider a home in your net worth considering you must use that asset to live in and the money is not really NET because you can't just spend/use it? The only way I see it in NET worth is if I ever sell @ 700k and downsize to 300k and put 400k in pocket, then sure net worth at that stage ups by 400k. Thoughts my fellow peeps? Curious.

[@lmelior]

I think home value is probably included in the statistics. I've heard Bo say on a few occasions that the conservative way to include your home's value in your net worth is to base it on the purchase price. If you paid $300k and owe $200k, then your net worth is +$100k, no matter if your house is worth double by now.

[@AT-hs9nf]

@@lmelior Thanks. I am probably extra conservative then because I don't think home should be in net worth because it's tied up asset where u live. Unless like I said you sell and all, then some money could be added to total NW. I mean who is it worth to until I am dead lol. I think it's just a nice feeling to sit on it and always have an option to downsize and pocket the difference IF it comes to that. Else that home net worth is worth 0 IF i keep living in it until I die. Makes sense?

[@mar_man813]

@@lmelior Yeah, it's hard to include primary home appreciation in the calculation -- even if you sold the home and bought a new one (either same size or smaller), the overall market went up so your purchasing power is likely the same (obv some markets see increases more than others, but likely not too dramatic). For investment properties, it's completely different.

[@Zorlig]

You target invested assets but for comparison have to include home equity.

[@jbedsaul04]

I think including the equity (whether that's a more conservative Loan to Purchase Price or traditional Loan to Market Value) is valid. If you were to liquidate and rent, you would, in theory, realize the equity gains in real dollars. It's all a thought exercise anyways as nearly everyone has the majority of their net worth in illiquid assets (equities in retirement accounts, stock valuations that mean nothing until sold, etc.)

[@stevencollins8429]

Net worth uses mortgage minus appraisal of the house. How does that change retirement? If you have a paid-off $3M house, you can't use that money to actually purchase things.

[@blockaderunner]

that's why you save more after you pay it off

[@captured_agent5714]

You can access home equity

[@realnapster1522]

You can!

[@michellezheng3561]

What does "all the net worth" mean? Does it include our primary house?

[@appleztooranges]

36 and net worth so far is $600k

[@sethphillips9288]

I love watching this show, I am 34, and quite different than everyone here. This is why I love watching these guys and reading everyones comments though. I think it is nice to get different perspectives on how to build wealth. I decided to go the real estate route. I own 4 properties with a total of 15 units. 7 of those units are airbnbs in the summer and 8 month rentals for the winter. This was my first decent year of income, but as I am sure you all know real estate has a lot of expenses associated with it :(. I am still stubborn though and plan to keep investing in real estate with a few more big renovation projects that will add two more units to the beach house, and modernize the rest of it. once that is all done then I plan on heavily investing in ETF's and boring growth stocks, and probably sticking about 20% of the cash in the brokerage into index funds that follow the S&P. I don't really like to value my Net worth as most of it is not liquid. So I feel very poor compared to all you studs lol. How many people think what I am doing is crazy? I do work for myself now and live on the beach, (in the basement apartment lol) which is great for me and my dog. I drive an 04 tundra, and made a little over 80k net this year after all my expenses and other renovations/repairs.

[@eldanno5970]

I’m assuming we are including retirement funds in these numbers?

[@WBrown999]

Are these net worth figures based on household or individual figures? Thanks!

[@arstout]

They do this on individual.

[@SweetPotata10]

One of the source is DQYDJ and the figures seem to be household on the site.

[@WBrown999]

@@SweetPotata10 Yes, that’s what I am seeing as well. Wondering if there data on individual net worth is not available. Seems to all be household.

[@jbedsaul04]

I've seen them (and others) say that net worth is reported as household, but incomes are reported as individual - I wonder this all the time as well as wish more folks would make that clear.

[@blockaderunner]

@@jbedsaul04 they don't care, just like hearing themselves speak

[@David-dw2iq]

For all the numbers do we need to double it for families? Is the top 10% net worth for a single person?

[@bucknut9475]

Usually they are household numbers

[@Backcove26]

How come we include total balance of pre tax 401k in net worth? Isn't Uncle Sam owed some of that money ? and net worth formula is totaled owned - what you owe.

[@har8397]

I don't get it. I've always saved 30 to 60% of my income since I was 22 and only worth 710k....

[@trevorb5557]

Do they include home less mortgage for net worth?

[@jbedsaul04]

Yes. While you can include any 'asset' in a net worth statement, they tend to suggest leaving off depreciating assets like cars, but include appreciating ones.

[@mickeybeavison1053]

Sucks to realize you’re not doing as well as you thought

[@abrahams.lincoln6749]

WooHoo🎉

[@NaNa-lt1po]

(Age×income)/10.

[@CrayonEater94]

Gross of net income

[@blockaderunner]

that's not top 10% though but average, so I'm well above average, but certainly not top 10%