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https://finance.yahoo.com/news/rich-heres-net-worth-defines-150138779.html

How Rich Are You? Here's The Net Worth That Defines Upper, Middle, and
Lower Class
Ivy Grace
Wed, Sep 4, 2024, 8:01 AM PDT4 min read

How Rich Are You? Here's The Net Worth That Defines Upper, Middle, and
Lower Class
You've heard the terms “upper class,” “middle class,” and “lower class”
tossed around in conversations about money and society. But what do
these labels mean? And, more importantly, where do you fit in?

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While there’s no perfect way to define economic classes, one common
approach is to look at net worth. Your net worth isn’t just about how
much cash you have in the bank – it’s the total value of everything you
own minus what you owe. Think of it as a financial report card that
shows your overall wealth.

According to recent data from the Federal Reserve, here’s how the
numbers stack up:

If you’re in the upper class, you’re sitting pretty. The top 10% of
earners have an average net worth of $2.65 million. Even if you’re
squeaking into the upper class (the 80-90% range), you’re looking at
about $793,000.

Moving down to the middle class, things get a bit more varied. The
upper-middle class folks have an average net worth of around $300,800.
Your typical middle-class family comes in at $169,420. And if you’re in
the lower-middle class, you’re looking at about $58,550.

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Now, for the lower class, the numbers take a sharp dive. The average net
worth here is just $16,900. That’s a pretty dramatic contrast to the
millions at the top.

But here’s the thing – these are just averages. Your situation might
look very different. Maybe you’re a recent college graduate with a
mountain of student debt but a high-paying job. Or perhaps you’re
retired with a modest income but a paid-off house and hefty savings.
Life’s complicated, and so are finances.

It’s also worth noting that net worth isn’t everything. Your day-to-day life is probably more affected by your income and cost of living. A
teacher in a small town might have a lower net worth than a struggling
actor in New York City, but who’s better off?

See Also: Can you guess how many Americans successfully retire with
$1,000,000 saved? The percentage may shock you.

So, what can you do with this information? First, don’t panic if your
net worth isn’t where you want it to be. Remember, building wealth takes time. If you’re young, you’ve got plenty of years to grow your nest egg.

If you want to boost your net worth, here are a few tips:

Pay off high-interest debt. It’s hard to build wealth when you’re
bleeding money on interest payments.

Save and invest regularly. Even small amounts add up over time.

Consider buying a home. Home equity is a big part of many people’s net
worth.

Invest in yourself. Learning new skills can lead to higher-paying jobs.

Live below your means. The less you spend, the more you can save and invest.


Story continues

If you’re nearing retirement or already enjoying your golden years, here
are a few moves to boost your financial comfort:

Holding off on claiming your Social Security benefits can pay off, as
they increase the longer you wait. Consider working a bit longer if
possible – it might be worth it.

Think about downsizing your home, too. This can unlock some of your
equity and reduce your living costs. Also, if you’re still in the
workforce, maxing out your retirement accounts with catch-up
contributions is a smart way to pump up your savings as you approach retirement.

Don’t overlook Health Savings Accounts (HSAs), either. They offer triple
tax advantages and are an excellent way to stash away funds for those inevitable medical expenses that tend to pop up as we age.

Remember, your experience is invaluable. Many professionals with years
of experience thrive in consulting or mentoring, turning decades of
know-how into rewarding side jobs or even new careers.

Your value goes way beyond your bank balance! Remember, being ‘upper
class’ or ‘lower class’ is just one way to slice it. What’s truly important is how you’re moving toward your own financial goals.
Everyone’s journey is different, and chatting with a financial advisor
could be a great move if you're aiming for some tailored advice to hit
those targets. They can help you map out a plan that fits just right for
what you need.

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This article How Rich Are You? Here's The Net Worth That Defines Upper,
Middle, and Lower Class originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All
rights reserved.


View comments
(557)
Former Republican
1 day ago
I earn between 160k -270k annually, depending on sales cycles. But I'm
not in the upper-class by any stretch when looking at net-worth. I know
people who have earned much less than me, yet still have a much higher net-worth than I have.

It's never about how much a person makes, but rather how carefully they
manage their money, invest, plan ahead.

Obviously, I like to spend a lot of money on stuff. Some people are far
wiser than me.


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Luke
23 hours ago
Pay yourself first. Live on what's left.

Get out of debt. You want to be paid interest instead of paying it.

Keep and maintain a rainy day fund.

Fund your 401K as much as you can. Invest in low-cost ETF funds.

Buy used cars, not new ones.

It's not about how much you make, its about how much you keep.

Keep track of your finances. Anything that gets measured consistently improves.

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