What does it take to be rich in 2019?
By mbrooks on May 14, 2019
By Matthew Brooks
Are you rich? Unless you are reading this on a diamond-studded iPhone while flying aboard one of your private jets, you probably don’t think of yourself as rich.
Officially, there is no definition of rich. A common definition is “more than I have.”
Charles Schwab, the billionaire financier, can afford to put a dollar sign on the definition of rich.
Schwab’s annual “Modern Wealth Survey” investigates the golden question: What does it take to be rich in 2019?”
The survey says … $2.27 million net worth, on average.
This is how much money Americans believe it takes to be rich.
The Schwab survey is interested in finding out what people think about money, their money, and others’ money.
According to the survey, 60% of people wonder how their friends can afford the expensive experiences as seen on social media.
Seeing others live a lavish lifestyle does not appear to directly cause a person to make similar financial choices.
Only 34% of people are influenced by social media “to spend money on experiences.” Among Millennials, however, that number jumps to 49%.
Nearly 44% of people say they carry a credit card balance.
More than half of Americans believe that they too will be rich someday.
Whether or not they will remain rich is a different issue.
More than of Americans, if suddenly blessed with a million, say they would spend it. Less than a quarter would save it.
Being rich is also an issue of the age spectrum.
Being richer than your peers when you are in your 20s and 30s takes much less money than when in your 50s and 60s.
The height of wealth in a person’s lifetime comes in the 55-64 age range, when people are on average worth $1.16 million, according to the Federal Reserve’s Survey of Consumer Finances.
More information on how Americans answered the Modern Wealth Survey can be found on the Charles Schwab website.