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Key Takeaway
- Your paycheck isn’t the only way you earn money, and for wealthier Americans, it’s not even the main one.
- The gap between what you earn at work and what your money earns through investing is the biggest driver of the wealth divide.
- A median-income family has a net worth of about $192,900, but the top 10% of earners have a median net worth more than $2.5 million, per the Federal Reserve’s Survey of Consumer Finances.
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Americans earn money two ways: from their jobs and from their investments—a key reason to disentangle net worth from income, which are often confused. Your income bracket indicates how much you earn in a given year. Your net worth is everything you own minus everything you owe, built up over a lifetime.
In the race to get ahead, these financial sources run at very different speeds: in 2025, wages grew about 3.3%; those invested in the S&P 500, a broad stock market index, had a return of 18%. That means someone with $50,000 in an index fund gained more last year—without lifting a finger—than most workers got from a raise. And that gap compounds. The top 10% of households hold about 67% of total U.S. wealth; the bottom 50% hold roughly 2.5%.
Below, we take you through the net worth for each income bracket.
What Americans Are Actually Worth By Income Tier
That’s why your income isn’t the final word on your financial future. Two families earning $85,000 can have wildly different financial lives depending on whether one of them started investing early, owns a home, or carries $40,000 in student debt. Net worth captures what your paycheck doesn’t: how much of your money you’ve kept, and how much it’s been earning as stocks or property you own go up in value.
The Federal Reserve’s Survey of Consumer Finances, last updated with 2022 data, shows just how wide the gaps are:
- Bottom 20% of earners: $14,000 median net worth
- Middle earners (40th–60th percentile): $159,300
- Upper-middle (60th–80th): $307,200
- Top 10%: $2,556,200
For families in the middle-income range—roughly $56,600 to $169,800 for a three-person household, per Pew Research Center—home equity makes up most of their wealth. The Census Bureau’s 2025 Current Population Survey estimates the median household income at $83,730 for 2024.
About half (52%) of U.S. adults fall into that middle tier. These households hold the bulk of their assets in real estate and vehicles, while the top quartile leans heavily into stocks and business equity.
Meanwhile, 37% of adults in the Federal Reserve’s 2024 SHED survey said they couldn’t fully cover a $400 emergency expense with cash.
That number hasn’t budged since 2022.
Fact Box
Charles Schwab’s 2025 Modern Wealth Survey found that Americans believe it takes $2.3 million to be considered wealthy and $839,000 just to feel financially comfortable. The national median household net worth is $192,900.
What Actually Moves the Needle
What separates people within the same income bracket is whether they get their money onto the other track — the one that compounds. Vanguard’s How America Saves 2025 report found that the average worker put away 7.7% of their paycheck in 2024, a record high, bringing those who have 401(k)s up to about 12% with their employer match. That’s about 3% less than the standard savings rate for these accounts.
Among workers earning under $15,000, retirement plan participation was just 31% across all, and only 14% in plans with voluntary enrollment.
