What’s your worth? The 3 net worth milestones that change everything for Americans (and what they say about you)

Financial advisors and influencers often talk about making savvy investments and adopting a long-term mindset. The power of compounding is often mentioned. What’s rarely mentioned is just how slow the process of building wealth can be when you’re getting started.

During the first few years of saving and investing, much of your progress is determined by your own contributions. The real power of compounding kicks in after a decade or more.

For instance, if you save $500 a month and invest it in an asset that delivers 8% annual growth, after five years you will accumulate only $35,200. In other words, you’ve waited half a decade just to be able to afford a budget car. To make matters worse, 85% of your net worth was generated by your own monthly contributions, not capital appreciation.

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For many, this lack of growth can be discouraging. But if you manage to overcome this feeling and continue on the journey, you could reach $1 million in net worth within 35 years. At that stage, your accumulated monthly contributions account for just less than 21% of your total wealth — with the rest derived from compounding growth.

The good news is that you don’t have to wait three decades before seeing payoffs. Along the way, you’re likely to hit some tipping points that unlock new phases of growth and wealth accumulation.

If you’re just getting started in 2026, here are the three key net worth milestones that noticeably change your investing journey.

Reaching the $10,000 milestone may not seem like a big deal, but when you consider how many Americans struggle to save anything at all, this milestone becomes more impressive.

According to an Empower study, 21% of U.S. adults have no emergency savings (1), and another 37% said they would struggle to manage an emergency expense of more than $400.

With more than $10,000 in net assets, you could potentially generate $400 in passive income alone. (A 10-year U.S. treasury bond currently offers a 4.17% yield.) In other words, you’re much better prepared for emergencies and sudden expenses, and no longer struggling to stay afloat financially.

Reaching the five-figure milestone also demonstrates you have the ability to accumulate wealth. All the healthy savings habits and discipline that have brought you to this stage will propel you forward to your next milestone.