Americans' Net Worth Just Reached $154 Trillion. Here's How to Boost Yours

Americans are wealthier than ever, recent Federal Reserve data shows. During the second quarter of 2023, U.S. household wealth hit a record $154.3 trillion. That's on top of a $3 trillion increase during the first quarter of the year.

How'd we get here? A big part of it has to do with rising stock and home values.

Investors' portfolios grew by $2.6 trillion during the second quarter of the year, while real estate values rose by $2.5 trillion. The result? Americans' net worth is higher than it's ever been before.

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If you're wondering what exactly net worth is, it's the difference between your assets and your liabilities. So let's say you own a home worth $500,000 and also have $50,000 in your savings account. That's $550,000 in assets. If you owe $250,000 on your mortgage but have no other debt, you're left with a net worth of $300,000.

You may be eager to grow your net worth, and one thing you should know is that this sort of thing generally happens over time. But here are a couple of steps you can take to see your net worth increase.

1. Buy a home

Higher real estate values have led to a recent uptick in household wealth. So if you want to grow your net worth, buying a home could be a smart bet. If you rent a home, the value of your rental won't change your net worth for the better.

But let's be clear: Homeownership is not for everyone. And you can absolutely grow your net worth even if you decide never to buy a place of your own.

In fact, if you're looking to purchase a home, it should be because you want a place of your own and you're confident in your ability to keep up with the work and expenses that comes with homeownership. You shouldn't rush to buy a home for the express purpose of growing your net worth.

However, let's say you buy a $300,000 home whose value rises to $500,000 in 10 years. That right there could make it so your net worth increases $200,000 over the next decade.

2. Build an investment portfolio

Investing in assets like stocks is a great way to grow wealth over time, since investments have the potential to gain value. Now, one thing you should know is that on a short-term basis, you may not see your net worth increase by loading up on stocks. That's because the stock market can be quite volatile, and your portfolio might lose value over, say, a two-, three-, or five-year period.

Rather, people tend to make money in the stock market over the long run. So if you're willing to sit tight and be patient, you might manage to grow your net worth substantially with a stock portfolio.

Over the past 50 years, the stock market's average annual return has been 10%, as measured by the S&P 500. If you invest $10,000 this year and score that same return in your portfolio, in 20 years, that $10,000 in stocks might be worth around $67,000.

Growing your net worth is a process. Don't be discouraged if you don't see much movement from one year to the next. But over time, you may be pleasantly surprised at how much wealth you manage to gain.