households

Net worth is one of the most important financial numbers to know.

You should monitor your net worth because it changes over time, and it gives you a good idea of how close you are to being financially independent and shows whether you are making progress on your financial goals.

It can also be fun to see how your net worth stacks up to your peers. In particular, you may be curious about what net worth you would need to be among the top 10% of American households. The number is, unsurprisingly, pretty big.

Here’s the amount you would need, along with some details on calculating your net worth — and increasing it.

Image source: Getty Images.

How do you calculate your net worth?

Before diving into the net worth you need to be among the top 10%, it’s helpful to consider how to calculate net worth in the first place.

Net worth is essentially how much wealth you have to your name. To calculate your net worth:

• Start by adding up the value of all your assets. Money in your bank account and savings account counts. So does money in your money market account. If you have CDs, these count as well. Same with investment dollars in a brokerage account. If you own real estate, a car, jewelry, personal items, or anything else of value, it counts toward your net worth.
• Add up all your debt. You’ll also need to add up what you owe. Credit card debts, student loans, payday loans, a mortgage, and any other financial obligations you have will all become part of your debt calculation. You can check your credit report to confirm balances on all your debts if you aren’t sure of the amounts.
• Subtract the amount of your debt from the value of your assets. If your assets are worth $500,000, for example, but you have $350,000 in debt, then you subtract $350,000 from $500,000 to discover that your net worth is $150,000.

If your net worth is negative, that’s pretty common if you’re young. Many people don’t own much, and they borrow for school, so they graduate with a lot of debt.

As you get older, though, your net worth should be growing as you build up money in brokerage accounts and retirement plans.

Are you in the top 10% of American households?

Now that you know how net worth is calculated, you may want to see where you stand.

The best information on this comes from the Federal Reserve’s Survey of Consumer Finances, which comes out once every three years. Unfortunately, the most recent data is from 2022. Still, we can take a look at that information to get an idea of what the top 10% of earners have in terms of wealth.

Based on this data from the Federal Reserve, the top 10% of American households had a net worth of at least $1,936,900, although the threshold varies by age. For example:

• Among 18 to 29-year-olds, you’d need $281,550 or higher to be in the top 10%
• Between 30 to 39, you’d need $711,400
• Between 40 to 49, you’d need $1,313,700
• Between 50 to 59, you’d need $2,629,060
• Between 60 to 69, you’d need $3,007,400
• At age 70 and over, you’d need $2,862,000

While these are high numbers, the amount is most likely even higher today due to the stellar performance of the stock market and the increase in real estate values in recent years.

While the Federal Reserve should have new data soon, these numbers show that it takes millions to be among the wealthiest Americans in terms of net worth.

Still, regardless of how you compare to your peers, what’s important is that you work on growing your own net worth by paying down debt, investing in your 401(k), IRA, and other accounts, and making smart financial choices that make you more financially secure over time.

MILLIONS of struggling households on Universal Credit could be missing out on discounted broadband worth up to £200.

Social tariffs are offered to those on Universal Credit and other government benefits such as Pension Credit.

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And it can help you save hundreds of pounds a year compared to the standard deals.

Not only that, but they often come with no exit fees, although you should always check the terms and conditions carefully.

It comes after fresh analysis by Policy in Practice shows that there was over 7.5million missed claims for the tariffs.

And the average household is missing out on £200 a year.

It means you can get access to broadband at a discounted price, which can help if you are struggling with other costs.

For example, 4th Utility social tariffs offers a broadband for £13.99 a month.

Meanwhile, BT offers a Home Essentials package for those on Universal Credit and the guaranteed element of Pension Credit.

And those Employment and Support Allowance, Jobseeker’s Allowance and Income Support can also apply.

You’ll need to provide some personal information when you apply, including your National Insurance Number, so we can check that you’re eligible.

Community Fibre also offers an essentials package that costs just £12.50 a month.

Meanwhile, EE also offers a £12 monthly sim deal, for those on claiming Universal Credit.

The group will ill carry out an eligibility check every 12 months to see if you still meet the criteria to get the discounted deal.

How to get the best deal

Like with any offer, it is worth shopping around to ensure you are getting the best deal.

The regulator Ofcom has a list on its website of all the firms offering social broadband and mobile phone tariffs.

The list can be found here – www.ofcom.org.uk/phones-and-broadband/saving-money/social-tariffs.

It’s worth scanning the list to find the package that best suits your needs.

You can also compare deals via comparison sites like Uswitch.

What other support can I get

If you claim Universal Credit you could be missing out on extra support, such as discounts to your council tax bill.

The support is given out by local councils in England, so how much is cut will depend on where you live, your income, dependants and other benefits.

You can find out if you’re eligible by visiting gov.uk/apply-council-tax-reduction.

Households can also get access to free school meals, and school uniform grants which can be worth up to £300.

During the winter, claiming benefits such as Universal Credit can also make you eligible for the warm home discount scheme.

This is a £150 discount on your electricity bill to help tackle rising costs during the winter.

MILLIONS of households are facing a £100 rise in their energy bills next year due to the Government’s net zero policies, according to new analysis.

Energy analysts Cornwall Insight said changes being made to push the country towards net zero will fuel a rise in energy bills for the average household.

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It predicted the changes will add more than £100 to the energy price cap in April 2026 compared with January.

The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge, and it’s updated every three months.

Cornwall Insight said bills will increase for households because of the cost of connecting new wind and solar farms, the construction of the Sizewell C nuclear power station, and upgrades to the gas networks.

It also suggested further rises will follow later because of the construction of pylon lines, underground cables and substations.

It means households are likely to be paying more for their energy at a time when inflation remains high and many are struggling with the cost of living.

The UK has legally committed to achieving net zero greenhouse gas emissions by 2050.

This means the total amount of emissions produced is equal to or less than the amount removed from the atmosphere. 

But the Government is having to balance this with extra costs to households up and down the country.

Ahead of the election, Energy Secretary Ed Miliband had pledged to cut household energy bills by £300 by 2030.

He repeated that promise again last month.

Cornwall Insight’s Dr Craig Lowrey said investing in renewables would eventually reduce bills and it was necessary in the long run.

But he said: “Rising energy bills are never welcome, and this latest view of transmission charges – although only indicative – will add yet another cost to the long list of pressures on household finances.”

The average energy bill for a dual-fuel home is currently £1,720 per year.

However the energy price cap is set to rise at the beginning of October, bringing it to £1,755.

Yet another rise is expected in January because of seasonal increases in wholesale costs.

The £100 bill increase predicted by Cornwall Insight is unrelated to the wholesale cost of gas.

The experts say it’s due to the cost of maintaining and expanding the UK’s power grid.

It said electricity network costs alone would add £30 a year, and this will rise to £50 a year by 2028.

Meanwhile green levies will add another £18, including £12 of advance payments for building Sizewell C.

Upgrading the gas network, which is partly needed to accommodate the introduction of green hydrogen, will add another £53.

Cornwall Insight said the bill increases were “not totally unexpected but highlight potential further financial pressures than households will face”.

It’s expected households will end up paying higher standing charges.

A standing charge is a fixed daily fee added to your energy bill, charged by your supplier regardless of how much energy you use.

Increasing standing charges is controversial as households aren’t able to avoid paying them.

While you could bring down your energy bills by cutting down on how much energy you use, there isn’t a way of reducing the cost of a standing charge.

This can leave struggling households forced to pay extra.

Ofgem has said households will later feel the benefit of an expanded electricity network through their bills, but this will take time.

Dr Lowrey said: “These costs are not just another item to tag onto the bill, they are essential to the long-term security and affordability of Great Britain’s energy system.

“For years, households have been at the mercy of global energy markets, with prices soaring and crashing in response to events happening thousands of miles away. It’s unpredictable, and it’s ultimately unsustainable.

“Investing in Britain’s transmission network means building a cleaner, more resilient energy system – one powered by renewables grown right here at home. Yes, it will take time. Yes, it will cost money. But every pound we invest today is a step toward a future where our energy is not only greener, but also more secure and, in time, more affordable.

“People rightly expect renewables to bring bills down, and they will. But first, we need to lay the foundations. There are a lot of costs involved in the transition, but the costs of doing nothing will be far greater.”

Help with energy bills

If you are struggling with your energy bill then there is plenty of support on offer.

For example, the Winter Fuel Allowance offers £300 to pensioners to help cover the cost of their heating during colder months.

Around 75% of pensioners are expected to receive the support this year, after Labour U-turned on the tighter eligibility criteria it announced last winter.

Struggling families can also get access to money through the Household Support Fund (HSF).

Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.

Exactly how much you can get and how the money will be paid depends on your council and situation.

Plus, thousands of households will receive the Warm Home Discount, which is worth £150.

The discount is given to households on a low-income or claiming certain benefits, such as Universal Credit.

It is not paid as cash and is instead applied as credit to your energy bill.

If you are falling behind on your energy bill then you can also get help through your energy supplier.

British Gas has announced a £140million support package to help customers facing financial hardship.

This includes free energy grants, tailored support for households and small business customers and funding for advice centres and charities.

It has also launched You Pay: We Pay, which gives households the opportunity to have their payments matched by British Gas for a period of six months.

Octopus Energy’s £30million Octo Assist fund is designed to help customers keep on top of their energy bills.

It includes free electric blankets, Winter Fuel Payments and standing charge waivers.

EDF’s Customer Support Fund gives grants and help to vulnerable customers who are struggling with energy debt.

It can support customers with electricity or gas bill debts, and provide essential white goods such as a fridge or cooker.

HOUSEHOLDS on Universal Credit should be aware of one-off payments worth hundreds that could help cover emergency costs.

A budgeting advance is a type of payment given to those claiming the benefit to help with paying for items such as a broken cooker.

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The advance is interest free, so you only have to pay back what you borrow. Usually you will be expected to pay the money back within 24 months.

You can apply for a budgeting advance to cover things like:

• A one-off item – for example, replacing a broken fridge
• Work-related expenses – for example, buying uniforms or tools
• Unexpected expenses
• Repairs to your home
• Travel expenses
• Maternity expenses
• Funeral expenses
• Moving costs or rent deposit
• Essential items, like clothes

How much you can get depends on a number of factors, with the lowest you can borrow £100. 

Meanwhile, single people could get up to £348, while those who live with a partner could get up to £464.

The highest reward is only eligible for people with children and that is worth £812.

But it is not always guaranteed that you will be accepted for the payment.

Firstly, you must have been claiming Universal Credit, Employment and Support Allowance, Income Support, Jobseeker’s Allowance or State Pension Credit for six months or more.

There is an exception if you need the money to help start a new job or stay in employment.

You will not be eligible either if you have earned more than £2,600 in the past six months or £3,600 if you are in a couple.

You will also not qualify if you have not paid off any previous advance loans, as you can only have one at a time.

You can apply for a budgeting advance by calling the Universal Credit helpline on 0800 328 5644.

An advisor will then asses you can pay the loan back – they’ll see if you have any debts and how much you owe to help work this out.

The phone lines are open Monday to Friday, 8am to 6pm, and you’ll normally get a decision on the same day.

Alternatively, you can apply through your online account or speak to your Jobcentre Plus work coach.

Paying the advance back

You have to pay any money you were given back, but you will not be charged interest.

The money will be taken out of your Universal Credit payments, and you will pay it back over two years, starting from your next payment.

So for example, if you get an advance of £240 and you pay this back over 24 months, £10 will be taken out of your payment each month until this is paid back.

If you cannot afford your advance repayments, you can ask for the amount you pay to be lowered.

You can call the Universal Credit helpline or contact the Jobcentre helpline.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.

Elon Musk’s electric car and energy company Tesla has applied for a licence to supply electricity to British homes.

If approved by the energy watchdog Ofgem, it would allow Tesla to take on the big firms that dominate the UK energy market to provide electricity to households and businesses in England, Scotland and Wales as soon as next year.

Tesla, which is best known as one of the world’s biggest makers of electric vehicles (EV), also has a solar energy and battery storage business.

Tesla did not immediately reply to a BBC request for comment.

Ofgem can take up to nine months to process applications for energy supply licences.

Tesla Electric already operates a power supplier in Texas that allows owners of its EVs to charge their cars cheaply and pays them for feeding surplus electricity back to the grid.

The application, which was signed by Andrew Payne who runs Tesla’s European energy operations, was filed late last month.

Tesla has sold more than a quarter of a million EVs and tens of thousands of home storage batteries in the UK, which could help it gain access to a sizeable customer base for an electricity supply business.

The Ofgem licence application comes as Tesla’s EV sales have fallen across Europe in recent months.

In July, UK car registrations of Teslas fell by almost 60% and by more 55% in Germany, industry data showed.

That took the firm’s sales decline in the month to 45% in 10 key European markets.

Tesla has faced tough competition from rival EV makers, especially China’s BYD.

Musk has also been criticised for his relationship with US President Donald Trump, although the two have now very publicly fallen out.

His involvement in right-wing politics in the UK, Germany and Italy, meanwhile, has drawn ire from some of Tesla’s customers.