Ever find yourself wondering, “Am I doing okay with my money?” Or, “How am I doing compared with others?” You’re not alone. It’s a question I hear all the time from women at every income level. The truth is, there’s no single right number for net worth, salary, or savings — but there are benchmarks that can give you a sense of perspective.
The key is to treat these numbers as a starting point, not a final verdict. They can help you set goals, celebrate progress, and feel more confident about how you’re doing.
Here are three benchmarks worth exploring:
1. How does my net worth compare to others my age?
Your net worth is simply all your assets (for example, cash, savings, retirement accounts, the value of your home) minus your debts (credit card balances, loans, mortgage). Understanding your net worth gives you a snapshot in time of your financial health and your progress toward financial stability.
It is quite common to have a negative net worth when you’re younger, because you may have student loans, car payments, or a mortgage and your career is still in its early stages. As your salary rises and you have time to pay down debts and accumulate savings, your net worth will grow.
Source: Source: Federal Reserve “Survey of Consumer Finances (2022)
Money Nudge: Add up your assets, subtract your liabilities, and choose one small move to grow your net worth. That may mean making an extra payment on a loan, or setting up an auto transfer to your savings account each month.
2. How much should I have saved up for retirement so far?
Retirement may seem far away, but the earlier you save the faster your money grows. And it doesn’t grow in a straight line; it grows like the letter J. It multiplies your money like a meme gone viral. Here are Fidelity’s rules of thumb for retirement savings at different ages:
- Age 30 = 1x your annual salary
- Age 40 = 3x
- Age 50 = 6x
- Age 60 = 8x
Money Nudge: Check your 401k and IRA savings. Even if you’re behind where you’d like to be, start making small, steady contributions. You’ll be amazed at the heavy lifting compound growth will do for you. (And make sure it’s invested, not sitting in a money market fund earning a paltry interest rate.)
3. How does my salary compare to others my age?
Comparing salaries helps you understand how you’re doing relative to others who live in your state and have a similar number of people in your household. Are you “middle class?” Lower or higher? These comparisons help you know where you stand and highlight opportunities to negotiate your salary, change jobs, or even move.
Tool: Pew Research Income Calculator
Money Nudge: Enter your details to see where you land compared to others in your city and age group. It may be reassuring to know you’re on par and it may prompt you to think about potential changes like a career change or relocation.
Final thought:
Comparisons help you set context. They’re not a judgment of past decisions or a verdict that can’t be overturned. Use them to spark action and ideas. Everyone’s path is different and, no matter what your age, you have time to make changes.
Want to see how your spending, debt, and credit score stack up? Read Part 2: Spending, debt & credit score for practical tips and comparison tools.