Net Worth: Why this is my favorite Financial KPI

Information is power. The Federal Reserve posted their 2022 Survey of Consumer Finances (SCF). In it, you can see the AVERAGE and MEDIAN net worth by age. 

Don't like reading government reports? Here's a summary in a Forbes article.

I believe the median is a more meaningful number than the average. Because with the widening wealth gap, some outliers can really skew the averages.

I share this information not for you to have big feelings comparing yourself that you're "ahead" or "behind," because we are all on our own financial journey. 

I share this as a data point to explore. 

• Are you where you want to be? 

• What financial actions can you take so you are progressing to get where you want to be?

• What financial decisions are ready for you to decide?

I have famously shared that I don't budget (though I am giving YNAB a try right now) and instead I track my net worth each month. This is more motivating to me as I see my investments grow. I am motivated to putting more dollars to building my net worth. There is also a limit to how much you can save. But there isn't a limit to how much wealth you can build. 

Also, as we plan for the future of The Pledgettes, on the first Friday of each month, we are going to put up a poll. Has your net worth: increased, decreased, stayed about the same? This poll is a nudge for you to track and reflect. Our goal with The Pledgettes is for you to evolve your relationship with money and build wealth. So I want to make sure we are working on the wealth building part as much as the relationship building part. The first poll will go up on Friday, which coincides with the Financial First Friday (Financial Friends) virtual event. This is a working session. If you enjoy this, we'll continue to do it through 2024. 

Finally, want to learn more about net worth? I really enjoyed this Webinar-on-Demand, What is Net Worth and Why is it Important to Track Yours? with Addie McHale [Replay].