100k Net Worth – What is the Best Way to Get There?

100k net worth

When it comes to net worth, $100k is the stepping stone to building immense wealth. Someone with a 100k wealth can live a comfy luxury life, without having to worry about expenses.

However, 100K net worth is not just a milestone a person hits, and it opens doors of opportunities for you, and helps you build your wealth seamlessly.

But then, several questions must have started going through your head. Questions like; how do I hit $100k at 25? How do I get to $100k at 30? Is $100K net worth good?

What is the average age to reach $100k net worth? How do you know when you have hit the 100K?

I know for one that I am targeting at least a $100K net worth before I reach age 25. So I understand, where you are coming from. But first, how do you calculate your net worth?

How is Net Worth Calculated?

Net worth is not merely the amount of money a person has in his bank accounts or at hand. It takes into account the money they owe too. As such, your wealth is calculated using two main factors; assets, and liabilities.


Assets are those things you own and can exchange for money either fast or with some time. Or, it could be money itself.

When you can easily exchange them for money, we call them liquid assets, such as money, and investments.

However, some assets prove harder to sell and may take a long period to exchange for money. So, they are called fixed assets. Eg. real estate.

These assets include but are not limited to:

  • the market value of your home; provided there is no mortgage on it
  • your household items like furniture, electrical appliances
  • your owned vehicles; excluding the leased ones
  • your insurance policy cost; not your claim amount
  • your investments
  • the total amount of savings in your bank accounts
  • credits owed to you by a person, business, or organization
  • your stocks, treasury, and saving bonds
  • pieces of jewelry
  • real estate or other properties owned
  • inventory or products
  • retirement accounts


On the other hand, liabilities are those things in monetary value, that are owed by you to another entity. Thus, they are not yours, and you cannot exchange them for money.

We can also classify liabilities into two. Short-term liabilities are so small, and clearable within a year.

On the other hand, long-term liabilities are bigger in magnitude. They take a longer time to clear.

Here are some of the liabilities that affect your net worth:

  • mortgage loans debts
  • credit card debt
  • auto loans debts
  • student loan debts
  • personal loan debts
  • bank debts
  • loans interests
  • healthcare bills
  • other unpaid bills or debts

When calculating net-worth, assets generally add up to your worth, while liabilities subtract from it since they are debts you need to pay up.

As a result, the total savings in bank accounts, and other accounts will be useless when calculating your worth. Because if you have liabilities greater than your assets, your wealth suffers.

So, in layman’s terms, net worth is calculated as net worth = assets – liabilities.

What does a 100K Net Worth Mean?

Having a 100k net worth can be tricky as to its meaning. Mark Zuckerberg is not the richest millennial in the world because he has $49.1 billion in his bank accounts.

There is a possibility that he does not have half of his net worth in his savings accounts.

Remember that we have two types of assets; liquid, and fixed assets. The liquid assets can be easily accessed and converted to money, and they may as well be money.

While the fixed assets take some processes and time to become money available for spending.

So, in our case of 100K net worth, this might not be in the form of liquid assets. The net worth can be 80 percent of fixed assets, and 20% liquid. Thus, 100K net worth, does not mean you have $100,000 in your bank accounts, in stocks, or in savings.

You may even have only $10,000 in your savings account, bonds, treasury, and stocks. This does not mean your net worth is a mere $10k.

That being said, having 100K in your savings accounts does mean you are worth 100K either. There is a possibility of you have lingering liabilities like college loan debts and mortgages that will knock that 100K out of your accounts.

This is where your other assets come in. Specifically, your real estate, automobiles, and other vehicles are also known as fixed assets.

Thus, 100K wealth means everything you own is valued together without special preferences for your liquid assets, especially your bank balance. So you may build your wealth to 100K, and you will still have a little amount in your bank account.

In a nutshell, what the amount of money in your bank accounts indicates is how rich you are, and not how wealthy. It indicates your purchasing power parity (PPP) because you have that liquid asset to spend immediately.

However, when you are $100K rich, it means you have $100K cash, and your liabilities are not considered. There is a possibility that your net worth is higher than 100K if you are in zero debt, and have other assets or financial products with significant worth.

But if $100K in your bank account is all you have, coupled with some debts like student loans, then you are only $100K rich, not wealthy.

Is 100K net worth considered good?

Yes, a $100K net worth is considered good. In fact, as a teenager, a 100K net worth is a good starting point in your building your wealth. According to The College Investor, the median, and average net worth of millennials under 35 are $13,900, and $76,300 respectively. While millennials between the ages of 35 to 44 have their median and average net worth at $91,300, and $436,200 respectively.

This means that with a $100K net worth as an under 35 millennial, you have $24,000 more wealth than your peers. Also, 100K net worth at age 35 and above means you are doing better than 50% of your peers.

So, yes! 100K net worth is pretty good, and a starting point to building more wealth.

What is the average age to 100k net worth?

The average age for a $100k net worth is the age 35. Studies from 2020 have shown that people age group 35 years have up to a median net worth of $13,900 to $91,300, and an average net worth of $76,300.

This means that if you have not reached 35 years of age yet, you are not very behind in building your wealth among your age group. However, people that are 35 years old, and above may have up to $436K median net worth.

The secret to building this type of wealth is to start investing in your future today. You may be 18 today, and you think you still have 17 years to build this wealth, but that is only partially true. But it pays if you start earlier because there is time on your side.

Although being 25 does not put you at a disadvantage either, you just have to put more effort. I believe you can build your wealth to surpass that if you put your mind to it. Do you believe in yourself?

Best Ways to Get to 100K Net Worth

Now that you know what 100K net worth is. The question is “what are the best ways to get to a 100K net worth”? Well, the answers are quite simple. I will show you things that can work for you in building your wealth to meet your goal of clearing all your debt. Here are some tips that can help you hit $100K wealth faster.

Use Your Time Wisely

One of the problems we have in this part of the world is a distraction and a feeling of entitlement. In the early years of our lives, some of us are fed by our parents and older siblings. Because of this, we fail to see the world as it is.

We feel they will continue to provide for us, so we do not think of our future. Especially, when it comes to future holds. And when we come to realize the reality of life, it becomes too late, and we start struggling to speed things up. Actions we could have taken in the early stages of our lives have now piled up and become burdensome.

This is me talking from experience. I spent the greater part of my teen relying on my parents to do things for me. I never thought that I would need to take care of myself until I was about to leave high school, and my father was retiring from his job. It was a life-changing moment.

I knew I would have to make enough funds for my college education unless I didn’t want to go. So, I started to use my time differently. I researched many forms of earning cash online and tried some. I got lucky in some and lost in some.

But I got wiser enough to not repeat the same mistakes, and rather double my inputs. I started to build some small wealth for myself.

Some of the ways I tried in the early stages of my hustle were Google Admob and cryptocurrency. The one I am not proud of is the Ponzi scheme. I lost more than I made here! Biggest mistake of my journey!

The point of using your time wisely is to start building your wealth as early as possible. There is no other right time to grow wealth than the moment you are reading the article. You need to take that first step in outlining how you want your financial status to be. Remember to make haste while the sun shines.

If you are still young, you should avoid all mediocrity, and unnecessary lifestyles and craft a good plan for your future. Create some short and long-term goals you can use to track your progress. As an older millennial, you have more backlogs of work to do. But luckily, if you start now, you can still catch up. The journey to your zero debt depends on your decision at this second, and how you begin to use your time henceforth.

Mark Zuckerberg, and Elon Musk both started building their future at very young ages. See how much they have achieved now. Anyone can do it with the right prioritization of their precious time. Think money every time! This will make hitting a 100K net worth as easy as a breeze for you.

Seek Higher Income Paying Jobs

This is quite a general opinion and stands uncontested. High-income paying jobs increase your extra cash inflow and open a lot of doors for you. One is the opportunity to earn more than an average American, and move towards zero debt through the building of wealth.

When you have a high-paying job, you will have more money in your care. This makes it easy to save money, and still live comfortably regardless of your lifestyle.

A high-income level also indicates you can set aside more capital for investments, and venturing into businesses. And these investments in turn will build your wealth for you through interest over time.

However, seeking higher-paying jobs is something that has to be planned for ahead. And it can come in three ways; knowing the best high-paying jobs, highly demanded jobs, and knowing the best firms to work with.

When it comes to choosing an occupation, it is always advisable for jobs with great hourly and annual mean wage. For example, Architectural and Engineering Managers earn 89.29% more than Accountants and Auditors annually at $158,970 and $83,980 respectively.

As a wise individual, you should naturally go for a higher paying job between the two. I mean, that is what I will do.

Another factor to consider when choosing your occupation is the demand for the job. Always choose jobs with very high demand and limited supply because it means you can negotiate better wages. If you are familiar with the laws of demand, and supply then this makes sense. An overpopulated occupation like Elementary School Teachers earns 45% less than highly demanded professionals like Nurse Practitioners. So you may want to think before picking a career there.

Lastly, the company you work with determines if you will ever reach 100K net worth or not, and how fast it will be. This is because companies have different capabilities, and exposes employees to diverse opportunities.

Aside from company benefits such as wage raises, and paid vacations that can surely help build your wealth, there is an issue of career goals. When you work with good firms, you are exposed to opportunities capable of helping your career through experiences and achievements.

As a result, your value will increase in your field. This in turn helps you negotiate better wages with your current employer, or get wooed by other firms like competitors. A firm that lets you grow professionally will pave the ways for you to grow financially as well.

Invest Wisely

There is no faster way to build wealth or your net worth than through investments. When you invest, you secure a consistent source of income for yourself. And the fun part is that most of them are passive income. You do not have to check on them every day to take action. Well, unless you are trading.

The best time to invest is immediately after you get some money that you can spare. For example, when you get a raise at work, you should avoid the temptation of buying the new iPhone 14 when your 13 Pro is still working perfectly. Or try to purchase the new smart TV, just because of a change in the number of ports on it. Or could it be that you feel you need a new car quickly just because the company dropped the latest edition that includes trafficator lights on the side mirrors?

Now you may be thinking, a tv, a new car, and iPhone 14 are assets, so why is there a problem buying them? Well, you are right. But the main difference between these assets and investing in stocks, bonds or treasury is that while cars, iPhones, and TVs will not give you an income, investments will. The former will still incur some liabilities or expenses such as phone bills, electricity bills, and gas bills. But your investments will build your wealth while you sleep instead.

Furthermore, when you decide to sell these assets for money, your investments will give your principal amount plus interest. On the other hand, the values of the iPhone, TV, and car would have reduced since they will deteriorate.

Invest in Real Estate

Real estate investment is one of the faster ways of growing your wealth. It is an alternative to investing in stock market and may require active participation in maintenance. It grows every day by an astronomical amount, and you stand a chance of bagging a lot of profit in the long run. Investing in real estate market comes in two ways; buying houses and flipping, and renting out apartments.

House flipping is when you buy a house for a cheap price, keep it for a while, and then sell it to people at a higher price. This is a capital-intensive investment because it requires you to have enough money for the house purchase, and renovation if necessary.

To get the houses to flip you need to search some auction sites to see houses that are going for cheap prices. Evaluate the damages, and renovations needed to ensure you have enough to cover them. Also, check the price range in the area to make sure your potential selling price will leave some profits for you. You can do this several times, and make a few thousand per house flipped.

Another way of investing in real estate is co-owning rental apartments or houses. If you are just moving towards hitting 100k, then you may not be able to purchase apartments you can rent on your own. Whatever the case may be, it is a good way of investing. You can start expecting monthly or yearly rent payments from tenants.

One advantage of real estate investment is that even during economic problems like inflation, you begin to earn more. As we all know, housing costs such as rent increase during inflation by a uniform percentage. This means charging more for your house, and you can get fatter paychecks continuously, as long as you own the house or building in question.

When deciding which real estate property to invest in, always let your budget, cost of procurement, renovation, and management, property taxes, profit expectations, and demand in the neighborhood guide you. If you can invest wisely, real estate can help you build your wealth towards hitting 100K net worth, and beyond with ease.

Start a Business

Do not be scared that you do not have enough capital. Every business or startup was like that at some point in its early years. If you just made some money from work that you can spare, instead of spending on entertainment, choose business instead.

Starting your own business is the first step to gaining financial independence. You are paving the way to build wealth easily while remaining your boss. A self-owned business gives you exposure and complete control over profits and vision for your job or career.

As a software developer, you can decide to open your agency with only you as the member and link with businesses that need your services. This way, you can have your pay increased, and won’t have to split it with anyone. Alternatively, you could employ a group of junior developers on your team with a per-project payment contract. So they only get paid when they work on a project. This way, you start earning commission on the work of others without lifting a finger. Well, of course, you will have to supervise the contracts to ensure quality.

Avoid Loans and Debts

One of the hindrances to building decent wealth is the accumulation of loans and more debt. Remember that how much debt or loans you have are liabilities – factors that lower your estate. As a result, the higher the number of debts you have, the farther you are to getting to $100k milestone.

To prevent this, try as much as possible to not take out loans to cover expenses for any reason. High-interest loans are terrible money suckers that will increase your liabilities significantly every month and year. As a result, you should strive to pay up all high-interest loan debts you have on your accounts. This will prevent your debts from accumulating beyond your control. However, I am not talking about taking a debt consolidation loan here. This still negates the essence of staying out of debt.

Try to spend your income on only the stuff you need to survive, and set aside a particular percentage for investments. When there is a need for more expenses, work harder to cover them or borrow from family and friends with zero interest. However, odds are that you do not need those items to survive!

Avoid Student Loan Debt

Another way of avoiding big debts is by attending low-cost colleges. When your college is too expensive to afford, you will end up taking up so many student loans, and this leads to large debts.

Graduates nowadays pay more debt for almost a decade of their lives, and it sucks up all their savings they make in their first years. This causes the need to take up other kinds of loans to cover the cost of living. More debt from your college years will never support your success when building wealth, so you should stay away from them.

Check Your Cost of Living

Cost of living is one of the factors to consider when growing your wealth from zero to 100k and beyond. Your cost of living refers to how much you spend to maintain your lifestyle in a particular area. As such, the cost of living varies.

As a rule of thumb, it is not wise to have a cost of living that is greater than how much you are making in a year. Thus, if you make $60,000 yearly, your cost of living must not pass $60K, or else, you will have to borrow to cover the differences.

But as someone building a decent wealth, spending your whole paycheck on your lifestyle is not the recommended way to live. You do not need an expensive house.

Thus, if your cost of living is too high, you should relocate to an area with a better cost of living that can allow for savings from your paycheck to facilitate investments. Alternatively, you can source for better jobs, where you can take a huge role.

Start Freelancing

Freelancing is one of the best ways to make money online and build some wealth for yourself. Generally, freelancing is like a remote work setting that allows you to work from anywhere you want. With freelancing, you can market your digital skills and charge clients per project, or per hour spent on the project. It allows for a cheap way of working since you do not need to commute. In addition, you can work with many clients at the same, and bill them all accordingly. (I only see more money here!)

When it comes to freelancing, there are two approaches. You can either get jobs that you can do yourself, or get jobs you will employ others to do for you; outsourcing jobs. For the former, you need to acquire enough skills to handle the projects on your own. But you just need to know about the jobs you are outsourcing so that you can supervise the contractors you will hire for them.

Either way, you can build a lot of wealth from this. You can freelance as a main job, depending on the volume of projects you are getting. Or, you can make it a side hustle to support your current job; provided you have the time.

Sites like Upwork, Fiverr, and are perfect places to source freelancing jobs online. You can decide to use the paycheck from freelancing for investment purposes only, especially if you have a stable day job.

Cultivate a Saving Attitude

It does not matter how much you make, if you cannot save some money, then you can never accumulate wealth. Spending extravagantly only show people how rich you are, and how much money you can spend. However, it does not add to your net worth.

To accumulate wealth and hit a 100K net worth and beyond faster, you need to make a savings account, and plan. Choose a percentage of your income you will set aside monthly for investment purposes without spending it. This investment could be to buy stocks, bonds, properties, financial products, or other forms of assets that will contribute to your net worth.

What to Do When Net Worth Reaches 100K?

When your weal reaches 100K, you should congratulate yourself first because you have reached a fantastic milestone. You have broken the ice and any barrier in the way of your personal finance success now. Things start to get easier now.

So the next thing to do is create some new goals to meet. You can set your new milestones to 200K in short-term, and $1M in the long term.

Why Does Net worth Skyrocket at 100K?

The simple explanation to why it skyrockets at 100K is because of its magnitude, and the interests it accrues. Imagine an annual investment of 10K with a per annum compound interest of 7%. Before you can make your first 100K, it will take 7.84 years. However, due to the power of compound interest, the second 100K will be made in 5.1 years. The third in 3.81 years.

Thus, the reason why net worth skyrockets after the first 100K is the power of compound interest.

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