Americans’ Net Worth Just Grew to $149 Trillion. Here’s How to Raise Yours

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Looking to grow your net worth? Read on for some tips. 

Your net worth may not be something you think about all that often. But no matter what yours looks like, you’d probably enjoy seeing it increase.

During the first quarter of 2023, Americans’ total net worth grew to nearly $149 trillion. And a big reason for that was stock market gains.

After a sluggish 2022, the stock market rallied earlier this year, leading to an increase in $2.4 trillion in net worth among U.S. investors. And while home values declined during the first quarter of the year, the gains investors saw in their brokerage accounts and retirement plans more than made up for that.

If you’re looking to grow your net worth, then investing could be your ticket to doing so. You may also want to consider buying assets that can appreciate in value over time and minimizing your debt.

A higher net worth could be yours

Net worth is measured by taking the sum of your assets and subtracting your debts. So as a very simple example, if you have $20,000 in savings and owe $5,000 on your credit cards, your net worth would be $15,000.

If you’re looking to grow your net worth, it pays to consider putting money into the stock market. Over the past 50 years, the stock market has delivered an average annual return of 10%, as measured by the performance of the S&P 500 index.

If you were to take $5,000, invest that money in a mix of stocks or an S&P 500 ETF, and sit back and do nothing for 20 years, you’d see that $5,000 grow into about $33,640, assuming your portfolio generates an average annual 10% return during that time.

To be clear, you can also grow your net worth by putting more money into a savings account and letting it earn interest. But you’re not going to see a 10% return in a savings account anytime soon — not even close. So if you’re really eager to see your net worth increase, investing is a better bet.

Buying a home is another good way to increase your net worth — if you feel that’s something you’re up for. Homes have a tendency to gain value over time, so if you buy a $250,000 home today and its value increases to $350,000 over 10 years, that, too, could add to your net worth.

Similarly, paying off existing debt will help your net worth increase. This holds true whether you pay down a mortgage loan, personal loan, or credit card balance.

How fixated on net worth should you be?

Your net worth isn’t necessarily something you have to spend your days thinking about constantly. But as you map out your financial goals, you’ll probably end up making moves that, ideally, lend to a higher net worth.

In fact, growing your net worth and meeting your financial objectives are likely to go hand in hand. And minimizing debt and choosing the right investments could easily lend to both.

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