Feeling wealthy is becoming a rare luxury for most people these days. A recent Ameriprise Financial survey found that only 8% of millionaires consider themselves wealthy, while 31% identify as middle class. This feeling of financial insecurity is attributed to inflation, high interest rates, and economic uncertainty. Even highly paid professionals, termed as the “regular rich,” don’t feel well-off.
According to Bloomberg, a significant percentage of people earning more than $175,000 a year have described themselves as either “poor” or “getting by but things are tight.” This sentiment also extends to those making over $500,000 and $1,000,000 annually.
Despite their high net worth, just 44% of all millionaires feel “very comfortable,” as per a report by Edelman Financial Engines.
Jason Van de Loo, chief client officer at Edelman Financial Engines, explained that most people feel they would need at least $1 million in the bank to feel wealthy. However, high-net-worth individuals set the bar much higher, with more than half saying they would need over $3 million and one-third saying over $5 million.
When it comes to income, Americans believe they would need to earn $233,000 on average to feel financially secure, while to feel wealthy, they would need to earn $483,000 on average.
However, rising costs are making it difficult for many people to make ends meet. Surging child-care expenses, high mortgage rates, and ballooning auto loans along with record rents have put financial pressure on households.
According to a survey by Bankrate, long-term changes have impacted Americans’ ability to manage their personal finances. Money has become the top source of stress among households.
Overall, it appears that the perception of wealth and financial stability is shifting, and more people are finding it difficult to feel truly secure in their financial situation.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
