5 Ways Americans Are Building Wealth in 2025 — Should You Join Them?

Core Insights - Americans are re-evaluating wealth-building strategies in 2025 amidst rising home prices, increasing debt, and technological changes in the economy [1] Group 1: Wealth Perception - According to Charles Schwab's 2025 Modern Wealth Survey, Americans believe an average net worth of $2.3 million is necessary to be considered wealthy [2] Group 2: Homeownership - Despite rising prices and interest rates, 36% of Americans view homeownership as their primary wealth-building strategy according to a 2025 LendingTree survey [3] - Experts recommend that no single asset, including real estate, should exceed 50% of one's overall net worth, suggesting that homes should represent 25% to 30% of net worth by retirement [4] Group 3: Retirement Savings - Retirement accounts like 401(k)s and IRAs are essential for wealth-building, with many workers increasing their contributions [5] - Experts advocate for long-term, passive investing strategies, such as a three-fund portfolio or dollar-cost averaging into mutual funds or ETFs tracking major indices like the S&P 500 [6][7]