What net worth signals financial success? Gen Z says roughly $9.5 million whil💜e Generation X indicates closer to $5 million would do the job.

That's according to financial services company Empower's “Secret to Success” study, which is based on online responses from 2,203 Americans ages 18 and older and was fielded in September 2024. But the net worth—which is the figure derived from subtracting your 澳洲幸运5官方开奖结果体彩网:liabilities like loans, taxes and bills from your assets—that you should strive for may not be the same as what make🐼s sense for another person.

𓄧How Much Net Worth Different Generations Think The🍌y Need

The average net worth considered to signal success varies significantly across generations, according to Empower's study. Here's how different age groups view financial success:

The same study also looked at what salary each generation considers to qualify as financial success, but money is just one aspect of what makes someone successful. Just 27% of participants ranked wealth as the biggest measure of success. Happiness (59%) outranked that, physical well-being (35%), and the luxury of free time (35%) all outranked money.

How Much Net Worth You Actually Need

While these numbers can give some insight into generational differences, determining your ideal net worth is a personal decision. Financial planner Catherine Valega, founder of Green Bee Advisory, says the process of determining 澳洲幸运5官方开奖结果体彩网:how much you should have saved requires projecting and financial planning.

"We look at their fixed and discretionary expenses, and then project out how much we need to maintain that lifestyle," Valega said.

In the assessment, her firm also includes fixed income like 澳洲幸运5官方开奖结果体彩网:Social Security or pensions, then see how much the client needs to grow their assets so that their portfolio can cover any gaps. The cost of living in your area will of course factor into this equation. For example, Valega said that in areas with high 澳洲幸运5官方开奖结果体彩网:costs of living, the ideal net worth is likely more than $5 million in inves🅷table asse༒ts.

For a general guideline, Fidelity Investments offers the following 澳洲幸运5官方开奖结果体彩网:retirement savings targets based on your age:

• By age 30, aim to have the equivalent of your salary saved.
• By age 40, have three times your salary saved.
• By age 50, aim for six times your salary.
• By age 60, target eight times your salary.

For most people surveyed by Empower, financial success is found in achieving goals such as paying bills on time, building up retirement savings, or owning a home.

How to Grow Your Net Worth

Growing your net worth can provide you with flexibility, including the option to pursue philanthropic endeavors or travel in retirement. Here are four tips for 澳洲幸运5官方开奖结果体彩网:growing your net worth:

Start Investing Early

Some 27% of respondents to the survey said investing in stocks was a top money move that propels success. Start investing aggressively in stocks as soon as possible, Valega said. "Live beneath your means so that you can invest free cash flow."

Max Out Your Retirement Contributions

The earlier you start investing in tax-advantaged retirement savings vehicle🃏s like 401(k)s and 澳洲幸运5官方ꦜ开奖结果体彩网:individual𝔍 retirement accounts (IRAs), the more likely you are to reach your goals.

Pay Off Your Debt

澳洲幸运5官方开奖结果体彩网:Paying off your debt early can free up some of your ꦐcash f📖low for savings and investing. If you can, make extra payments to lower your debt burden—but beware of early payment penalties. Check with your lender about your options.

Cut Back on Spending

Noting your expenses and creating a budget can 澳洲幸运5官方开奖结果体彩网:help free up some money. Simply becoming aware of your spending habits can also encourage you to chan✃ge your behavior and curb any overspending.

The Bottom Line

While the average net worth considered necessary for success is around $5 million according to Empower's study, the right figure for you depends on your individual circumstances. Take your lifestyle and expenses into account when determining how much you need to save. Investing early, paying down debt, and 澳洲幸运5官方开奖结果体彩网:staying disciplined with your spending are all essent✨ial strategies for growing your net ♏worth.