Alexandria Ocasio-Cortez is the rising star in the Democratic party. The 34-year old self-proclaimed “Democratic Socialist” and former bartender is New York’s 14th Congressional District. This post looks at Alexandria Ocasio-Cortez's net worth in 2024 and beyond.
AOC, for short, is the third most popular US politician on Twitter after Barack Obama and President Trump. Some believe AOC will be president one day as well.
One of the biggest question marks is what is Alexandria Ocasia-Cortez's net worth? AOC is not yet a millionaire since she is still relatively young. However, she should become a millionaire by 40.
Given the average member of Congress has a median net worth of around $511,000 in 2021, Congress members are roughly five times wealthier than the median net worth of an American household of $97,300, according to the Federal Reserve.
But given Alexandria Ocasio-Cortez is only 34 years old as of 1H2024, and the average age of a Congressman is 57, and the average age of a Senator is 62, it is logical to conclude that AOC's net worth is much lower than the median or average Congressperson's net worth. AOC's birthday is October 13, 1989.
Alexandria Ocasio-Cortez's Income
AOC positions herself as a working-class person for the people of New York.
“I think we need to be a party that is first and foremost accountable to working-class people again, and to marginalized people,” she told the Progressive in September 2018.
After Ocasio-Cortez defeated Rep. Joe Crowley in the primary in June and won the general election in November, she said in an interview with the New York Times that she was worried about paying for an apartment in Washington, DC, before her $174,000 annual congressional salary kicked in.
According to public records, she had $15,000 in savings in 2018, which should have been more than enough to pay for a $2,700 average apartment in Washington DC.
$174,000 is a very healthy paycheck for anybody in America, not to mention for a 32-year old.
In comparison, the median household income in America for 2021, after all, is only about $68,700. See the chart below by the US Bureau of Census. The real median household income for Hispanics is $56,113.
AOC's Net Worth
According to AOC's communications director at the end of 2018, Ocasio-Cortez had around $7,000 in savings. Where the rest of her $15,000 in savings went, it's hard to know. Perhaps she spent her money on moving expenses and preparation for her new government position.
She made about $26,600 in 2018. On July 10, 2019 during a House Committee on Financial Services on Capital Hill, she revealed in a statement that she still has $19,000 in student loan debt.
“I literally made a student loan payment while I was sitting here… and I looked at my balance and it [was] $20,237.16,” Rep. Alexandria Ocasio-Cortez (D-NY) stated towards the end of the hearing. “I just made a payment and it's now down to $19,000.”
Her student loan debt is high because she attended Boston University, one of the most expensive private schools in the country that has a 2023 tuition of $63,798. It's kind of strange going to such a school given she's a Democratic Socialist.
In September 2020, Ocasio-Cortez reported assets of between $2,003 and $31,000 in her most recent financial disclosure. Included in your latest financial disclosure is student loan debt between $15,000 and $50,000.
Given AOC doesn't own property, and does not look like she owns any stock either, AOC's current net worth is likely close to $200,000 as of August 24, 2023. AOC's student loan debt cancels out her savings.
But don't worry, Ocasio-Cortez will likely becoming one of those millionaires she despises within the next 10 years.
Related: The Average Net Worth For The Above Average Person
Ocasio-Cortez Will Eventually Become A Multi-Millionaire
Assuming Ocasio-Cortez pays the median $2,700 for an apartment in Washington D.C, spends another $1,000 for food and drinks, and another $500 for entertainment and transportation expenses, Ocasio-Cortez will have a monthly burn of roughly $4,200 after-tax.
Assuming a 20% effective tax rate on her $174,000 Congress salary, she is left with roughly $139,200 in after-tax income a year or $11,600 in after-tax income a month.
In other words, Ocasio-Cortez can continuously save roughly $7,400 a month in after-tax income as long as she keeps her spending at $4,200 a month and stays on as a Congresswomen.
After one year, Ocasio-Cortez will have boosted her net worth by $88,800 through savings alone. Add on a 5% rate of return if she invests in stocks or real estate plus her existing $7,000 in savings, and Ocasio-Cortez should have a net worth of roughly $150,000 at the beginning of 2023.
AOC Net Worth Progression
Here's a realistic path to AOC's net worth if she remains in Congress, continues to live modestly in her $2,700/month apartment, spends no more than $4,200/month, saves 50% of her gross income a year, and sees her investments grow by 2% – 8% a year on average.
Yes, having the discipline to save 50% of her gross income is aggressive when the average American only saves about 6%. However, AOC was recently making less than $30,000 as a bartender. Further, she doesn't want to be seen as living high on the hog now that she's in Congress.
Spending $50,400 a year of her $174,000 a year salary seems like a reasonable amount.
Alexandria Ocasio-Cortez Net Worth Over Time
Here is AOC's potential net worth over time if she follows the Financial Samurai principles of aggressive saving and investing.
2020 AOC net worth at age 30: $50,000 – $100,000
2021 AOC net worth at age 31: $189,000 – $230,000
2022 AOC net worth at age 32: $270,000 – $320,000
2023 AOC net worth at age 33: $360,000 – $450,000
2024 AOC net worth at age 34: $450,000 – $550,000
2025 AOC net worth at age 35: $550,000 – $650,000
2026 AOC net worth at age 36: $650,000 – $800,000
2027 AOC net worth at age 37: $750,000 – $900,000
2028 AOC net worth at age 38: $850,000 – $1,100,000
2029 AOC net worth at age 39: $950,000 – $1,300,000
2030 AOC net worth at age 40: $1,050,000 – $1,500,000
If Ocasio-Cortez can remain in Congress for nine years and maintains her spending habits, she will likely have a $1,000,000 net worth by the time she is 38 years old in 2028.
By the time AOC is 45, she will undoubtedly become a multi-millionaire.
Hopefully, AOC isn't spending her own money on $30,000 Met Gala tickets though. That would be a net worth killer. Like any true Democratic Socialist, she probably is skillful in getting others to pay for her luxuries.
Many Ways For Ocasio-Cortez To Get Wealthier
Being a millionaire by her late 30s is just the beginning for AOC. She will likely emerge to be one of the most powerful and interesting women in Congress if she's in office that long.
For example, in addition to her $174,000 salary, Senator Elizabeth Warren got an advance of $525,000 to write “A Fighting Chance.” The book chronicles Warren's rise from a struggling childhood to the Senate and her fight for middle class Americans.
AOC also is a fan of democratizing access to investments that were once only available to the very wealthy. For example, investing in real estate crowdfunding enables you to buy buying a piece of commercial real estate. In the past, you’d have to spend millions to buy an office building or student housing complex.
It's hard to come up with a 20% downpayment in places like Washington D.C. and New York City, where AOC is based. Instead, you can invest in real estate across the country with lower valuations and higher net rental yields through crowdfunding.
Fundrise is free and easy to sign up and explore. Real estate is one of the best ways for the average American to build wealth over time. And Fundrise has democratized access to multifamily properties and commercial real estate investment opportunities across the country.
Another great platform is CrowdStreet, which focuses on real estate opportunities in 18-hour cities. 18-hour cities are fast-growing cities with much lower valuations than 24-hour cities like NYC. There is a huge demographic shift towards lower cost areas of the country due to the pandemic.
I've personally invested $954,000 in real estate crowdfunding to earn income 100% passive and diversify my real estate holdings. Both platforms are free to sign up and explore. Both firms are affiliate partners of Financial Samurai.
The opportunities to make lots of money for AOC is endless. Alexandria Ocasio-Cortez will eventually have a net worth in the multiple millions by the time she is in her mid-40s.
The Key To Growing Your Net Worth
Growing your net worth is all about widening the gap between income and expenses. The more you can save and invest, the higher your net worth will grow as your money compounds over time.
Where people get in trouble is inflating their lifestyles faster than their income inflates. We all know people with high incomes who never seem to be able to get ahead. Hopefully Ocasio-Cortez doesn't let her newfound power, income, and fame disrupt her frugal ways.
If you want to grow your net worth, you must diligently track your finances. Use a free financial tool like Empower to track your cash flow. All analyze your investments for excessive fees while managing your net worth. Your net worth may not grow as quickly as AOC's net worth, but it will grow.
The younger generation like Ocasia-Cortez have leveraged technology to their advantage, so should all of us. I've tracked my net worth with Empower since 2012 and have seen my net worth more than quadruple since.
Don't be like the typical American who wings it with their finances. They wake up 10 years later wondering where their money went. Take charge of your finances because nobody cares more about your money than you. Alexandria Ocasio-Cortez's net worth will grow over time. So should yours!
About the Author:
Sam started Financial Samurai in 2009 as a way to make sense of the financial crisis. He proceeded to spend the next 13 years after attending The College of William & Mary and UC Berkeley for b-school working at Goldman Sachs and Credit Suisse. He owns properties in San Francisco, Lake Tahoe, and Honolulu.
In 2012, Sam was able to retire at the age of 34 largely thanks to his investments. They currently generate roughly $300,000 a year in passive income. He spends time playing tennis, taking care of family, and writing online to help others achieve financial freedom.
If you're looking to read the best personal finance book, order a hard copy of Buy This, Not That: How To Spend Your Way To Wealth And Freedom. It'll provide you at least 100X more value than its cost and help you build wealth and live your best life.
Alexandria Ocasio-Cortez Net Worth is a Financial Samurai original post.