How much wealth does it take to be considered rich?

According to the results of the 2023 Modern Wealth Survey conducted by Charles Schwab, while social media has a significant effect on measuring wealth in America, you need to have at least $2.2 million to be wealthy.

The results of the Modern Wealth 2023 survey were released on Tuesday. In the survey, respondents were asked to estimate how much wealth, on average, it would take to join the wealthy class in America. Respondents said the median amount was $2.2 million.

Despite the high estimate of $2.2 million, 48 percent of respondents said they felt wealthy. The average wealth of those who said they felt rich was announced at $560,000.

According to the results of the survey; Generation Y and Generation Z have a higher feeling of wealth than Generation X and boomers. According to this, 57 percent of millennials feel wealthy, while 46 percent of Gen Z, 41 percent of Gen X, and 40 percent of boomers feel wealthy.

PARADOX IN THE DEFINITION OF WEALTH

While the survey results show the difficulties in determining what wealth means, with inflation rising in the United States, it takes more money than ever to feel financially secure, especially in cities where the cost of living is high.

Individual conditions, such as the variation in purchasing power from region to region, household size, and debt, affect a sense of financial health.

Rob Williams, managing director of financial planning and wealth management at Charles Schwab, noted that there is a paradox that people define wealth differently for themselves and for others.

SOCIAL NETWORKS DEFINE YOUR FEELINGS

The survey results revealed that social media creates new uncertainties for Americans about how wealthy they feel and tend to compare themselves to others.

Nearly half of those surveyed told their friends that having a similar lifestyle made them feel wealthy.

More than a third of social media users said they compare themselves to what their environment shares on social media. This method of comparison came to the fore especially in generations Y and Z.

THEY DEFINE WEALTH DIFFERENTLY

According to Schwab’s research, when Americans define wealth, non-financial assets like health and family are more important than having large sums of money.

Nearly two-thirds of Americans said that having healthy relationships with loved ones defines wealth better than having lots of money, while 70 percent said that wealth means not worrying about money rather than having more money.