It Takes A Lot Less Money To Feel Wealthy Than To Be It, Survey Finds
It Takes A Lot Less Money To Feel Wealthy Than To Be It, Survey Finds
Dylan Croll Mon, Jun 19, 2023
It takes more than $2 million to be wealthy, according to a new survey of everyday Americans. But it takes just a quarter of that figure for them to feel wealthy themselves. That’s one takeaway from Charles Schwab’s seventh annual modern wealth survey, which polled 1,000 Americans about saving, spending, investing, and wealth.
When asked what amount they considered wealthy, the survey respondents came back with an average of $2.2 million. Yet, among the 48% of Americans who already see themselves as rich, their average net worth was $560,000, survey found.
The results reveal the public’s shifting perception of what being rich means, with many associating wealth with wellbeing rather than simple net worth. But financial planning still plays a role in feeling wealthy, however one defines it, experts said.
Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. He is a wealthy businessman who goes around anonymously at Christmas time, handing $100 bills to people he spies in places such as thrift stores, laundromats, health clinics, assistance centers and shelters. He gives away tens of thousands of dollars each year with no tax benefits. (AP Photo/Nick Ut)
Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. (AP Photo/Nick Ut)
"People define wealth differently when they're asked about how to define a dollar amount or when they're asked what it means to be wealthy," Rob Williams, managing director of financial planning, retirement income and wealth management at Charles Schwab, told Yahoo Finance. "I think the actionable point that we would suggest is to think carefully about what wealth means to you comprehensively."
THE TAKEAWAY
When asked what they considered wealthy, Americans surveyed by Charles Schwab came back with an average of $2.2 million.
More than 3 in 5 Americans said having a healthy relationship with loved ones is a better way to describe wealth than “having a lot of money.” The survey also found that 40% of Americans mentioned "well-being" when asked about wealth, versus 32% who responded with "money" and 26% who said "assets".
For instance, when asked to describe what money means to them, 70% of Americans said "enjoying experiences" over "owning nice things." Also, 69% of Americans chose "having a healthy work-life balance," while less than half that share — 31% — selected maximizing their earnings. Around 63% chose good health, while 37% chose being successful.
"I think COVID probably caused some of this," Williams said. "[We’ve] all reevaluated what it means to be healthy, to be wealthy, to be confident about our financial lives, and a little bit more about our current lifestyles."
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