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Americans say this net worth would make them 'financially comfortable'—but that metric is often 'misleading,' money expert says

July 19, 2025
01:00 PM
5 min read
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Net worth is a useful tool, but it present an incomplete picture of your finances, experts say.

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5 min read

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investment

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July 19, 2025

01:00 PM

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CNBC

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investmentmoneywealthfinancialtechnologyhealthcaremarket cyclesseasonal analysis

The analysis indicates that And InvestHow much cash to keep in your checking account, according to money expertsNext Gen I cut my investments to for a wedding—why do I feel so guilty it

Spend3 in 4 couples overspend on their weddings—how to stay on budgetBecome Debt-FreeJason Isaacs says he has ‘pretty much spent everything’ he has ever earned SpendWhy this self-made millionaire gave Gen Z couple permission to spend more moneyOleg Breslavtsev | Moment | Getty ImagesWhat would it take for you to feel financially comfortable

For most of the people who work with Joy Slabaugh, a certified financial planner, licensed therapist and founder of Wealth Alignment Institute, the answer is the same. "It's always a little bit more than what they have," she says. "Regardless of how much money they have, it's just a little bit more. "On average, Americans say they'd need a net worth of $839,000 to feel financially comfortable, according to a recent survey from Charles Schwab (noteworthy indeed)

Members of Gen Z say they'd be comfortable with less — just $329,000, on average

You may be wondering what net worth could afford you a comfortable life — and what your current net worth actually is

If you're not sure the answer to either, don't worry, in light of current trends

While financial experts say tracking net worth can be a useful tool in your money management arsenal, it presents an incomplete picture of your financial life

In contrast, "It's just one metric — and often a misleading one (an important development), in light of current trends

I've seen clients fixated on their net worth while completely disconnected from their financial reality," Slabaugh says. "Tracking net worth without tracking values or lifestyle intentions is watching your pulse without knowing if your heart is healthy, amid market uncertainty. "How to calculate your net worthYour net worth is the total value of everything you own, after accounting for money that you owe, and is a useful shorthand for overall wealth

To call yourself a millionaire, for example, you generally need a net worth of $1 million or more, in today's financial world

Furthermore, To find yours, add up your assets, such as bank accounts, stock holdings, physical valuables and equity, before subtracting your liabilities, which include credit card debt, student loans and mortgage balances

Nevertheless, Theoretically, this number gives you a pretty decent overview of your actual wealth

However, Someone may appear to be wealthy if they have a $1 million house, for instance (an important development), in this volatile climate

Not so much if they also have $2 million in debt (an important development)

In contrast, It's not always a very practical yardstick, however, amid market uncertainty

For one thing, two people with the same net worth could have wildly different financial situations

However, One person may have a big chunk of assets in liquid cash, giving them plenty of spending power, while the other has the bulk of their wealth tied up in retirement accounts

Moreover, On the other hand, Rather than focusing on one number, you're better off examining how money flows in and out of your life, and whether or not you're making gress toward your goals, experts say, in light of current trends

On the other hand, "[Net worth is] a 'snapshot' of one's financial position at a single point in time," says Randy Bruns, a CFP and principle at Model Wealth in Naperville, Illinois. "In contrast, their cash flow statement acts more the ',' capturing the movement of money in and out that ultimately shapes their net worth (fascinating analysis), given the current landscape. "When financial comfort goes beyond moneyWhen it comes to feeling financially comfortable, it's smart to make sure you have a few critical bases covered, says Slabaugh

These include not only making ends meet, but having enough breathing room to pay down debt, build emergency savings and invest for the future

However, Beyond that, no number in particular is going to bring you comfort unless you get to the heart of what you want from your money, she says

For many of Slabaugh's clients, building wealth means having security

However, For others, money is a means to flexibility and freedom. "In nearly every case, the comfort isn't just financial — it's emotional," Slabaugh says

Financial comfort, she says, comes when your money management aligns with your core values

Someone who values freedom, for instance, could aim to beef up their travel savings while looking for misaligned areas in their budget to slash, in today's financial world. "It could be, 'I'm spending hundreds of dollars a month on ing services to escape the fact that I feel stuck, in today's market environment

In contrast, Let me divert that to a vacation fund, and now I can actually to go to some of these places that I'm dreaming while watching these shows,'" Slabaugh says

Instead of striving for a particular number in your bank account, ask yourself what having that amount of money would do for you and what your life would change if you already had it, Slabaugh says (quite telling)

Moreover, "These questions are often more revealing — and more actionable — than a net worth target ever could be. "Want to be a successful, confident communicator

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Furthermore, Plus, for CNBC Make It's to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers, amid market uncertainty. 6:2506:25How I earn $900,000 a year as a dermatologistMillennial Money, given current economic conditions.