Blog Post
How am I doing financially? Part 1: Net worth, income & savings
Use three benchmarks - net worth, retirement savings, and income - to gauge your financial progress with context, set goals, and choose your next money move.
If you have ever wondered, "Am I doing okay with money?" you are not alone. There is no perfect number for everyone, but a few benchmarks can give useful context.
The key is to use comparisons as information, not as a verdict.
1. Net Worth
Your net worth is everything you own minus everything you owe.
It gives you a snapshot of your financial position right now. When you are younger, it is common for net worth to be low or even negative because student loans, car debt, or a mortgage may still outweigh your assets.
Money nudge
Add up your assets, subtract your debts, and choose one move that improves the number:
- make an extra payment on a loan
- send a little more to savings
- pay down a credit card balance
2. Retirement Savings
Retirement can feel far away, but early dollars do the heaviest lifting because of compound growth.
The original article points to Fidelity's rough guidelines:
- age 30: about 1x your salary
- age 40: about 3x
- age 50: about 6x
- age 60: about 8x
Money nudge
Check whether your 401(k) and IRA contributions are active and invested, not just sitting in cash.
3. Income
Looking at salary benchmarks can help you understand where you stand relative to similar households in your area. That can be useful if you are thinking about negotiation, job changes, or bigger life decisions.
Money nudge
Use a comparison tool like the Pew Research calculator to see where your income lands, then decide whether it sparks any action.
Benchmarks are best used as a mirror, not a weapon.
Final Thought
Comparisons can create clarity when you use them well. They are not there to shame you. They are there to help you see what is working, what could improve, and what next step makes sense.
Want the day-to-day side of the picture too? Part 2 looks at spending, debt, and credit score.