Hoping to get rich? If you want to impress the Joneses and everyone else, you’ll need to top $1 million before you join the ranks of the well off.
According to a Charles Schwab survey of 1,000 adults between the ages of 21 and 75, the consensus minimum of how much net worth you need before you’re considered “wealthy” is now $2.2 million. dollars on average.
In these days of runaway inflation, it’s no surprise that Americans now think that it takes a lot more money than a million dollars to get rich.
However, this year’s amount of $2.2 million is actually down from the high of $2.6 million when Schwab asked the same question in 2020.
Schwab also asked people to identify how much money they need before they consider themselves “financially well off”.
Respondents said it takes a net worth of $774,000 to achieve this status, down sharply from the high of $1.4 million in the 2018 survey.
In an age of soaring inflation, it seems counterintuitive for people to lower their estimates of what it takes to be “rich” or “comfortable.”
Schwab offers no opinion on what’s behind the change, but it seems plausible that Americans are reassessing how much money they really need as their values shift in the wake of the COVID-19 pandemic.
How to get rich in 2022
Hoping to reach one of the dollar amounts mentioned above? It’s actually a lot easier than you think if you put a plan into action and stick to it.
Consider starting your journey to ‘Comfortable’ or even ‘Rich’ by enrolling in the Money Talks News course. Money made simple.
MTN founder Stacy Johnson offers 14 weeks of money basics in this course. You will learn how to improve your financial life in all of the following areas:
- Estate planning
After completing these lessons, you’ll be ready to manage your money more effectively while spending less time getting the results you want. As Stacy writes:
“Whatever your situation, understanding and learning to control your money will improve your life. If you’re rich, you want to stay that way. If you’re not, you want to get there.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.