How Do I Know If I'm Rich?

How Do I Know If I'm Rich?

Ashley Kilroy   January 11, 2023

Openly discussing the topic can be uncomfortable. But you’ve probably wondered who can be considered truly rich and whether you fit that definition (or ever will). According to Schwab’s 2022 Modern Wealth Survey, the average American thinks being rich means having a net worth of $2.2 million. However, wealth has no universal definition. Just as beauty is in the eye of the beholder, being rich depends on your personal definition and circumstances. Here’s what you need to keep in mind when determining whether you are rich and what most people consider to be rich.

A financial advisor can help you create a financial plan to grow your savings and investments.

What’s the Amount of Money You Must Have to Be Considered Rich?

Schwab’s survey showed Americans’ conception of being rich means having a net worth of $2.2 million. This number represents a $300,000 increase from the survey’s results last year.

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

That said, Americans’ feelings about wealth go beyond dollar figures. For instance, the survey indicated that over half the country’s workforce would take lower pay for employment with a company aligning with their values. Additionally, almost 90% of employees want fulfillment from their work and orient their careers around their beliefs.

As a result, while Americans have a defined dollar number for being rich, they prioritize their principles as highly in the workplace, going so far as to take a pay cut to work for a company that resonates with their ideals.

And because being wealthy is subjective, some Americans might also believe that being financially comfortable is identical to being wealthy. Specifically, participants in Schwab’s survey reported that a net worth of $774,000 or more means being comfortable. Therefore, you might have a lower target for what it means to become wealthy – it depends on your lifestyle and financial priorities.

Factors That Determine If You’re Rich

Since the dollar amount regarding wealth is subjective, you can analyze your financial situation in multiple ways to determine if you’re rich. Different facets of beliefs about wealth include the following:

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