What Puts You In The Top 10% Net Worth In The UK (2025)?

Matt | Personal Finance

What Net Worth Puts You In The Top 10% In The UK (2025)? | Plus 5 Tips to Increase Your Net Worth #wealthbuilding #savingmoney #investing   Have you ever wondered how much wealth you need to be in the top 10% in the UK? In this video, I share the average Net Worth figures for UK households and reveal exactly what it takes to reach the top 10%   I also provide 5 actionable tips to help you increase your own net worth!   #personalfinance #personalfinancetips #networth #wealth

Transcript

00:00Just how much wealth do you need to be in the top 10%? Well on this video I'm going to share with

00:04you the average net worth figures for UK households including what it would take to be in that top 10%.

00:10I'll also share five tips for how you can increase your own net worth. If you're new to this channel

00:16I'm Matt, I'm a finance consultant. I've spent over eight years working for one of the top

00:20consulting companies in London. I now run my own company and on this channel I talk all things

00:25personal finance. So before we get going with revealing the net worth figures it's worth

00:30explaining what net worth is and how it's calculated. It's the calculation of what you own your assets

00:36minus what you owe your debts and liabilities. So for example if you had a 250,000 pound house

00:4350,000 pounds in your pension and 10,000 pounds in savings in a bank account then that would mean

00:49that you have 310,000 pounds worth of assets. But to work out net worth you need to subtract your

00:55debts. So if you had a 200,000 pound mortgage and 2,000 pounds worth of credit card debt then

01:02that would mean that your net worth is actually the 310,000 pounds minus the 202,000 pounds equaling

01:10108,000. You can use an online net worth calculator to help you calculate your own net worth. The key

01:17categories that make up net worth are firstly physical wealth which includes the value of any cars that you

01:23own or household possessions like expensive furniture, jewelry, watches or electronics. Secondly

01:29property wealth which includes your home or main residence and any other properties that you might

01:33have for example a rental property or a holiday home. This is the value of the properties minus any

01:40mortgage debt. Third is the value of your pension investments and fourth is your financial wealth

01:45from things like savings, stocks and shares and any other financial investments that you might own

01:50minus any financial liabilities like credit card debts or personal loans. Importantly net worth is

01:56not to be confused with earned income which is your paycheck or monthly salary. You might be earning

02:02over a hundred thousand pounds a year but if you spend all your money and you don't save invest and have

02:07assets then your net worth is going to be zero. So let's get going and look at the average net worth of

02:13UK households based on data from the ONS. This graph shows deciles which represent the percentage of UK

02:20populations wealth. Decile 1 is the 10% of the population with the lowest wealth and decile 10 is

02:26the 10% of the population with the highest wealth. The lowest wealth deciles deciles 1, 2 and 3 have a total

02:32wealth ranging from around £4,700 to over £71,000 and the majority of their net worth comes from physical wealth and

02:41possessions such as owning a car, electronics, jewellery and watches. However these types of assets typically

02:48don't go on to generate wealth for you. The middle deciles from 4 to 8 goes from total net worth of over

02:54£144,000 all the way up to almost £725,000 for decile 8. For these groups the majority of their wealth comes

03:03from property followed by pension investments. There could be a few reasons for these trends for example the

03:08correlation between age and wealth can contribute. You might have a student who has the majority of

03:13their wealth in their phone and laptop and as a result they'll likely be in the lower wealth deciles.

03:18But then you could have someone who's in their late 50s who's benefited from house price appreciation

03:23and their pension investments compounding and growing over time pushing them into the higher wealth deciles.

03:29So now let's look at the monetary values for the all-important top two deciles starting with the

03:34ninth decile which covers the top 20%. This decile has over £1 million in net worth and then it

03:41increases by a huge amount to the 10th decile jumping up all the way to over £2.4 million in net worth with

03:4847% from pension wealth at over £1.1 million and 31% from property wealth at over £766,000.

03:57You may well be thinking that's a lot of money but don't be disheartened. Remember these are averages and

04:02they will be skewed by ultra wealthy households like David and Victoria Beckham or Sir Richard Branson

04:08who have hundreds of millions of pounds which pulls the average up. If you're wondering how to build and

04:13increase your own net worth so that you can move up the wealth deciles I'm going to share five tips

04:17for how you can try to do this. The first one is on how you manage your income and expenses and

04:23stopping the cycle of lifestyle inflation. As you earn more money you spend more money. Many of the people

04:28who have large wealth aren't actually the same people who spend lots of money on designer clothes,

04:33sports cars or multiple holidays abroad. If you can do your best to keep your expenses at a similar

04:38level or within your means while your income goes up you'll find you're able to grow your wealth at a

04:44much faster rate. One of the things I found really helpful was to have an income and expenses tracker.

04:49It helped me to set a goal on where I wanted to get to to identify what I could save and invest and it

04:55also helped me to target reducing the cost of large monthly expenses so that I could manage my

05:00budget to be within my means each month. The second point is to pay off any high interest debt that

05:05you've got such as credit card debt, car loans, personal loans or student debt. It's very hard to

05:10build your savings and wealth if you've got high interest debt. It can often feel like you're living

05:15paycheck to paycheck. As soon as your pay comes in you spend it on rent bills, you pay off any credit card

05:21interest and then you find at the end of the month that you haven't got any money left to save

05:25and invest. So if you've got high interest debt, make this a priority to pay this off as soon as

05:30possible. Start by listing any debts that you have with an interest rate of greater than 7% and pay off

05:35the highest interest first. Third is to save at least 20% of your income each month and to put it

05:40into your pension investments. If you haven't done this already, start by opening a tax-free investment

05:46account such as a stocks and shares ISA and also maximize your contributions into any employer match

05:51pension schemes that are available to you. Fourth is to focus on ways to increase your income.

05:57There are a few ways to do this. One way is by investing in yourself to increase your skills so

06:02you're more valuable in the job market either to be able to negotiate a higher salary or to be able to

06:07find a higher paying job. For example, if you currently work as a waiter in a restaurant and you

06:12manage to save up £500 and you take that money and you pay for a sales course which enables you to get

06:18a sales job earning more money. If you were then able to add the ability to do marketing on top

06:24while you're doing your sales job then you can now run your own ad campaigns, you can get customer

06:29leads in and you can close sales. Your earning potential has just gone up tenfold from the pay

06:34you were getting as a waiter. Another way to increase your income is to start a side hustle business.

06:39There are lots of videos on YouTube and online giving ideas of what you can start from scratch

06:45and many of these don't require lots of startup money to get going with yourself. For example,

06:50it could be teaching a short course online about how to edit photos which you can do on platforms

06:55such as Udemy. Have a think about what strengths and skills you already have which could help you

07:00to earn some additional money on the side. And the fifth and final point is to invest with a long-term

07:05mindset. The trend for most people is that net worth grows as you get older and it's important to be as

07:11consistent as you can with your investments so that compound interest can do its job in helping your

07:16money grow over time. If someone were 30 were to invest 500 pounds per month over a 35-year period

07:23assuming an average annual rate of return of eight percent they would have over one million pounds of

07:28investments by 65. That's pretty good going. The earlier you can save and invest the more benefit

07:34you can get from compounding your investments. The other part to this is acquiring assets which grow in

07:39value over the long term. If you look at a lot of the wealthiest people in the world, people like

07:44Elon Musk, Warren Buffett, Bill Gates, their wealth isn't based on just having cash in the bank. It's

07:50based on the value of the assets that they own. They've acquired assets such as businesses or property

07:55and their wealth grows from the equity value increasing and also from the assets generating income.

08:00And that income is then reinvested to buy more assets and that cycle keeps compounding,

08:05growing the size and value of their assets and wealth.

08:08So these are my top five tips for helping you grow your net worth and wealth.

08:12I hope this video has been helpful. Feel free to leave any questions in the comments and give

08:17the video a like and a subscribe and I'll see you on the next one.

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