Charles Schwab’s Annual Survey of Modern Wealth found that Americans believe that to be considered wealthy, they must have at least a $2.2 million fortune.
According to the Charles Schwab Annual Survey of Modern Wealth, published by Fortune, Americans consider that to be considered a rich person they must have a minimum fortune of $2.2 million dollars.
The survey also found that people believe a median net worth of $774,000 is what it takes to be financially comfortable.
The Annual Modern Wealth Survey surveyed 1,000 Americans ages 21 to 75 in February 2022, asking them a series of questions about their personal finances, including factors that influence their saving and investment decisions.
How much money do Americans need to consider someone rich?
According to the information obtained, the average net worth needed to be considered wealthy and to be financially comfortable increased from last year’s survey.
Well, in 2021, the people consulted indicated that $1.9 million were needed to be rich and that $624,000 were enough to have assets to live comfortably.
But with little savings for emergencies or retirement, a figure like $2.2 million or even $774,000 can seem like an impossible goal to reach, says Rob Williams, general manager of financial planning, retirement income and wealth management at Charles Schwab. Although he assures that this does not have to be the case, since each household must calculate its own wealth objective and carry out an individualized savings plan, since what one person or family needs is not the same as another.
For Williams, the important thing is to have a goal, a deadline and start saving, regardless of the amount you save, since setting aside even a little money on a constant basis is especially important when building a retirement account.
“No matter how much money you have, get started and be disciplined,” Williams suggests. “You’ll look back and say, ‘My God, those little steps really added up over time. You’ll find yourself in a position where you can make a lot more decisions than you ever could before.”
The expert recommends that once you start saving, it becomes an automatic ritual, because often, when savings accumulate, they provide an impulse to continue saving more and more, even if you are just starting or are below of the stated objective.
Williams says that it is essential to consider that the project is long-term, especially in an unstable market like the one we are currently experiencing. Building wealth, for many, requires decades of dedicated investing and while pouring money into assets on a losing streak may seem counterproductive, a falling market is “an opportunity to save and invest more and get more for your money.”
Achieving net worth takes time, but it’s good to be aspiring: “Get started and don’t get overwhelmed trying to hit a certain number in a day or a week,” says the financial specialist.