From Yahoo Finance: 2025-05-28 18:17:00

Calculate your net worth to understand your financial health. The median net worth for American families in 2022 was $192,700. Having a negative net worth isn’t always bad, but it’s crucial to increase it for financial security. Different life stages may lead to a negative net worth, but it can improve with time.

Having a positive net worth means you have money to save, invest, and prepare for emergencies. It’s normal to have a negative net worth in certain situations, such as early mortgage payments or student loans. Education can significantly increase your earning power and net worth over time.

High-interest debt can contribute to a negative net worth. Consider consolidating debt, paying extra each month, or seeking credit counseling for faster payoff. Cutting expenses and increasing income can create more room in your budget to pay off debt and improve your net worth.

Where you put your money matters for growth and tax benefits. Explore high-yield savings accounts for emergency savings, consider sinking funds for planned expenses, and take advantage of employer-matched retirement contributions to boost your net worth. Making strategic financial moves can lead to long-term financial stability.

Read more: Negative net worth? Here are 3 things you can do to fix it.