7 Key Signs You’re Wealthier Than You Think
7 Key Signs You’re Wealthier Than You Think
Caitlyn Moorhead Mon, September 22, 202 GOBankingRates
Controversial but consummately successful podcaster Joe Rogan once said he felt like he’d “made it” financially when he had enough money to eat at a restaurant at night without feeling guilty and stressed about what it cost the following day.
Rogan’s net worth is now estimated at $200 million, which is all the money in the world — unless you’re Elon Musk. Rogan’s $200 million fortune he made bloviating opinions is less than 0.05% of Musk’s $395 billion fortune he made building cars and rocket ships.
The point is that how you feel about wealth is subjective and can come from many sources. In a country where more than half of all six-figure earners reportedly live paycheck to paycheck, how do you know if you’re rich, or at least richer than you think? Here are seven key signs you may be wealthier than most Americans.
You Make More Than the Median Earner
Your salary, of course, plays a significant role in your ability to accumulate wealth and has a lot to do with how you measure up to the masses.
“The median household income in the U.S. is around $75,000,” said Joel Ohman, certified financial planner and CEO of Clearsurance. “So, if you make more than that, your income is higher than half the people in the country.
“Of course, how far $75,000 takes you will depend on where you live. For example, you have a lot more buying power with $75,000 a year in Glendive, Montana, than you would in Orange County, California.”
Since the cost of living varies so dramatically from one place to the next, area median income (AMI) is a more accurate yardstick to measure your comparative wealth.
HUD Loans by commercial property financing firm Janover offers a state-by-state AMI breakdown with metro, non-metro and total AMI variants. Fannie Mae has a map-based AMI lookup tool that allows for much more granular and local detail.
You’ve Met the Standard Saving Milestones
Even the most impressive income is no indication of wealth if you spend more of it than you make, which so many high earners seem to do. The more accurate barometer, then, is how much you have in the bank.
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