Worst States for Net Worth Revealed
45sSurprising list of low-net-worth states triggers curiosity and regional pride.
▶ Play ClipAI Summary
The video analyzes median net worth across US states, highlighting that southern states like Kentucky, Louisiana, and Arkansas have low net worth due to lower real estate values. It contrasts these with top states like Hawaii, Washington, and Massachusetts, where high home equity inflates net worth. The key insight is that states with lower cost of living and solid job markets, such as Nebraska, Maine, and Idaho, offer better opportunities for growing net worth.
Chapters
[00:01]
Low Net Worth States
Southern states like Kentucky, Louisiana, and Arkansas have low median net worth, largely because real estate values are lower, and net worth is heavily comprised of home values.
[00:13]
National Median Net Worth
The national median net worth is around $201,000. If your state is below this, you might consider moving to a top 10 state.
[00:26]
Top 10 States
Hawaii leads with almost $700,000 median net worth, followed by Washington, Massachusetts, and also Idaho, Nebraska, and Maine.
[00:39]
Hawaii's Wealth is Home Equity
In Hawaii, net worth is mostly home equity, with a median home equity of $600,000. This means wealth is locked up in the house, not liquid.
[00:51]
Selection Bias in Hawaii
Hawaii's high net worth filters out those without money, acting as selection bias. It's not a place to grow wealth if you don't already have it.
[01:05]
Best States for Growing Net Worth
States like Nebraska, Maine, and Idaho are better for growing net worth because they have lower cost of living but solid job markets, allowing you to keep more of your income.
[01:17]
Key to Growing Net Worth
The gap between income and expenses is where you can grow net worth. In states with lower cost of living and solid job markets, this gap is larger.
The video suggests that to grow net worth, focus on states with lower cost of living and solid job markets, where the income-expense gap is favorable, rather than states with high home equity that lock up wealth.
Study Flashcards (5)
What is the national median net worth in the US?
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What is the national median net worth in the US?
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Around $201,000.
00:13
Which state has the highest median net worth?
easy
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Which state has the highest median net worth?
easy
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Hawaii, at almost $700,000.
00:26
Why do southern states like Kentucky and Louisiana have low net worth?
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Why do southern states like Kentucky and Louisiana have low net worth?
medium
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Because real estate values are lower, and net worth is largely comprised of home values.
00:01
What is the median home equity in Hawaii?
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What is the median home equity in Hawaii?
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$600,000.
00:39
Why is Hawaii's high net worth considered selection bias?
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Why is Hawaii's high net worth considered selection bias?
hard
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Because it filters out anyone without money already, as wealth is locked up in the house.
00:51
💡 Key Takeaways
📊
National median net worth
Provides a benchmark for comparing states.
00:13
📊
Top 10 states list
Identifies the wealthiest states, including unexpected ones like Idaho and Maine.
00:26
💡
Selection bias in Hawaii
Explains why high net worth doesn't mean easy wealth growth.
00:51
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Best states for growth
Highlights the importance of cost of living and job market for net worth growth.
01:05Full Transcript
[00:01] median net worth. And as you can see, we have a lot of states that are in the south like Kentucky, Louisiana, and Arkansas. And a huge reason for these low numbers is that the real estate values in these states are a lot lower,
[00:13] worth is going to be comprised of real estate and home values. Now, across the country, the median net worth sits at around $201,000. So, if you're below that and you see your state on this list, you might be
[00:26] move instead to one of the top 10 states. Here are those top 10 states, by the way. You can see Hawaii leads the pack at almost $700,000 in median net worth, followed by Washington, Massachusetts, and even states like
[00:39] Idaho, Nebraska, and Maine are in the top 10. Now, in Hawaii, a lot of the net worth is comprised of home equity at a $600,000 median home equity. So, people in Hawaii are technically the wealthiest in America, but most of that wealth is
[00:51] going to be locked up in a house. So, if you moved to Hawaii, it's not like you lot of the wealth is built into the house. And so, if anything, Hawaii is filters out anyone that doesn't have money already. It's kind of like
[01:05] selection bias. But, some of these top states like Nebraska, Maine, and Idaho, move to and start to grow your net worth because it's really about how much you get to keep. And in these states where the cost of living is a little bit on
[01:17] the lower end, but the job market is still solid, the gap between your income and your expenses is where you can really grow that net worth.
