How much money do Americans need to save to be considered wealthy? The latest data from the Federal Reserve is here 👇

To enter the top 10% of American households, how much net worth is needed? It depends on your age:

20s: $280,000
Over 30 years old: $710,000
Over 40 years old: $1.31 million
Over 50 years old: $2.63 million
Over 60 years old: $3.01 million
70+: $2.86 million

It is evident that the older you get, the more wealth you accumulate, which is quite normal - the power of time + compound interest. Most high-net-worth families have their money in stocks, funds, and real estate.

The key is, why do some people suddenly become rich in their 50s? Because in their 20s and 30s, they were doing these few things:

✓ Stick to saving money (expenses < income)
✓ Prioritize repaying high-interest debts (credit card rates 20%+, equivalent to a -20% investment return)
✓ Buy a house to build property net worth
✓ Max out your company's 401k contribution (equivalent to getting a 50-100% return for free)
✓ Utilize tax-advantaged accounts (IRA, etc.)

In simple terms: start early + have a plan + stick to execution. Don't expect to get rich overnight, but after ten or twenty years, compound interest will surprise you.