When I was a little kid, I thought a 401 (k) meant you had $401,000 saved away by the time you turned 40. Talk about a miscalculation, huh? Well, I wasn’t alone: 63 percent of working Americans with access to 401k data don’t understand how they work and don’t invest in one.
What sets finance apart from other fields is that it is one of the few arenas where experts and novices compete on equal footing. If you don’t want to end up a statistic here’s what you should know.
“Investing favors the dispassionate. Markets efficiently separate emotional investors from their money.”
— Naval Ravikant
20 Years-old: Median Net Worth:$0 or less
If you’re a student or battling with student debt, it’s almost certain that your net worth is lower than the average person’s, and that’s normal.
So ask yourself: Is the American college system really that much of a scam? Yes. You can still make the most of college, and it’s still a good idea if you want a specific job, yet the vast majority will work at Starbucks. Or live at home in their 30s.
(Great idea, America, to burden your youngest generation with the most debt!)
Actions to take in your 20s are to first know thyself. What are your goals in finance and in life? How do you want to achieve them? How long do you want to invest for? And what kind of investor are you?
Second, build good credit by paying off your student loans on time and not borrowing more than you need. Don’t finance a slice of pizza on Klarna (or at least don’t do it every day). Lastly, remember you are never too late.
Eight years ago, I started investing at age 21, and people said a recession was just around the corner.
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30 Years-Old: Median Net Worth: Less than $35,000
This is a necessary time to point out: don’t compare yourself to anyone but yourself. These are just metrics to help guide your progress.
At this age, we recommend staying out of debt.
As someone who’s been in debt, it’s like drowning in an ocean of numbers. Actions to take are to maximize the amount of money matched in your 401(k) if your job offers it.
A 401k is a tax-advantaged retirement account in which your employer will match a certain percentage of your contributions up to a maximum amount per year; moreover you can have your 401k payout in Bitcoin.
Breaking: Trump plans to sign an executive order that allows 401k retirement plans to invest in crypto pic.twitter.com/LUFalZduvP
— Crypto Tea (@CryptoTea_) July 17, 2025
Next, ask yourself: “Is it true that rich people don’t pay taxes?” Yes. Rich people don’t pay taxes by moving to Costa Rica for 180 days or having a Roth IRA. A Roth IRA is a retirement account where you pay taxes upfront, and the money grows tax-free.
Lastly, don’t save, invest. Bitcoin, Ethereum, tech stocks, and AI are all set to change the world by 2030. Don’t miss out (nfa).
40-Year-olds and 50-Year-olds+: Median Net Worth: $91,300
Compound interest is the sneaky force that feeds on itself, growing with each passing moment. Around this age, many people will see compound interest kick in.
Pro Tip: Despite some ups and downs, holding your investments usually pays off in the end. So, before investing in something ask yourself does this have long-term value?
Warren Buffett’s wealth skyrocketed by a staggering 99.7% after he turned 52. Brace yourself for an entertaining chart:
Investing is only PART of your life. Don’t worship money like a golden calf. But recognize its importance and be smart with it. Don’t wait until it’s too late to learn that.
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Key Takeaways
- If you’re a student or battling with student debt, it’s almost certain that your net worth is lower than the average person’s.
- Compound interest is the sneaky force that feeds on itself, growing with each passing moment.
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