Here’s Why Being a Millionaire Doesn’t Mean You’re Rich

Here’s Why Being a Millionaire Doesn’t Mean You’re Rich

Cindy Lamothe  GOBankingRates     Mon, December 29, 2025

If you grew up thinking a million dollars meant yachts, private islands and private jets, well, 2025 has other plans. These days, hitting millionaire status is still impressive — but it doesn’t automatically translate to feeling rich.

According to the 2025 UBS Global Wealth Report, the U.S. saw the sharpest rise in millionaire numbers globally. Between rising costs, shifting lifestyles and a new definition of what “wealthy” even means, being a millionaire isn’t what it used to be.

Here’s why the title doesn’t guarantee the life you might imagine.

When You’re Asset-Rich But Cash-Poor

For Michael Benoit, licensed insurance broker and founder of California Contractor Bond & Insurance Services, the concept of a “millionaire” being rich is dangerously outdated, especially in 2025.

“Every day I see owners of businesses who are millionaires on paper. They may have $2 million in assets, including their equipment and their primary residence,” he said.

Benoit explained the problem with this is that these assets are not liquid and are often encumbered by substantial debt. He noted, “They are asset-rich but cash-poor.”

How Your Age and Wealth Structure Shape True Millionaire Status

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