Average American Net Worth Hits $620,654, But This Figure Matters More
The average net worth of an American as of 2024 is reported to be $620,654, according to UBS’s global wealth report. However, this number does not reflect the financial reality for most individuals. The high average is influenced by extreme wealth held by a few individuals.
Understanding Average vs. Median Wealth
Averages can be misleading. For example, if the average American and a billionaire like Elon Musk were in an elevator, the average net worth would skyrocket to about $224 billion. Yet this does not represent reality for the average person.
UBS provides a more realistic measure: median wealth. The median is obtained by arranging net worth in order and selecting the middle value. As of 2024, the median net worth in the U.S. stands at $124,041. This figure is significantly lower—five times less—than the average net worth.
Wealth Inequality in America
The substantial gap between average and median wealth underscores the issue of wealth inequality in America. The country is the second wealthiest globally by average wealth but ranks 15th when considering median wealth. According to the Federal Reserve Bank of St. Louis, the top 10% of American households hold 67% of the total household wealth. In stark contrast, the bottom 50% possess only 2.5% of the wealth.
Strategies for Building Wealth
Despite the challenging financial landscape, individuals can build their wealth by adopting certain habits. As of August 2025, the personal savings rate in the U.S. was a modest 4.6%. Aiming to save 10% or 15% of your income can put you ahead of many peers.
Investing these savings wisely is crucial. For instance, the S&P 500 has shown an annualized return of 12.35% over the past decade. By investing approximately $575 a month into an index fund, one could surpass the median wealth threshold in around 10.5 years.
The Importance of Homeownership
Becoming a homeowner can also enhance financial stability. Current data from the Aspen Institute reveals that the median renter household has a net worth of only $10,400, whereas homeowners possess nearly $400,000. This stark disparity highlights the wealth advantages of property ownership.
Conclusion
While transforming America’s wealth disparity remains a complex issue, individuals can still take proactive steps to improve their financial situations. By saving and investing wisely, anyone can work towards achieving greater financial health and stability.
