A net worth of $2.2 million is needed to be considered wealthy in the US, according to a survey by investment platform Charles Schwab.
However, 48 per cent of respondents said they already feel wealthy despite having a net worth of $560,000, the Modern Wealth survey found.
Non-financial assets such as health and family were also more important for the survey’s 1,000 respondents when defining wealth than a high net worth.
“Americans today aren’t as worried about keeping up with the Joneses and, more importantly, they understand that they can be happier with fulfilling experiences and relationships, even if they have less money than them,” said Jonathan Craig, managing director and head of investor services at Charles Schwab.
“When people think about managing their finances and building wealth, it’s so much more personal than just money and investments.”
Despite the survey’s contradictory findings of the amount of money that defines wealth, inflation and economic uncertainty in the US, the world’s largest economy, remain the top concerns for most consumers.
Global economic uncertainty – compounded by the Russia-Ukraine war, a supply-chain crunch and a cost of living crisis – caused US inflation to rise to a 40-year high of 9.1 per cent in June last year.
The US Federal Reserve has increased its benchmark rates 10 times since March 2022 to bring inflation down to its 2 per cent target.
In May, the US consumer price index fell to an annual 4 per cent, down from 4.9 per cent in April – its lowest level since March 2021, government data showed.
Global inflation will decrease to 7 per cent this year and 4.9 per cent in 2024, from 8.7 per cent in 2022, according to the International Monetary Fund. This is still above the preferred 2 per cent target of central banks.
A separate survey by data news website PYMNTS and LendingClub in January found that 51 per cent of Americans who earn more than $100,000 reported living from paycheque to paycheque.
US consumers are also increasingly switching to cash to better manage their finances and cope with the cost-of-living crisis, according to another study by personal finance platform Credit Karma.
Meanwhile, 62 per cent of Americans said that being able to enjoy healthy relationships with their loved ones better describes wealth than having a lot of money, the Charles Schwab survey found.
Inflation around the world – in pictures
Seven in 10 of those polled also said that wealth is about not having to stress about money.
“In fact, when asked to characterise what it means to be wealthy in their own words, Americans mention their well-being (40 per cent) more often than money (32 per cent) and assets (26 per cent),” Charles Schwab said.
“These leanings are even stronger among older generations, with eight in 10 Boomers saying wealth is more about enjoying experiences (79 per cent) and not having financial stress (83 per cent) than having nice things or accumulating more dollars.”
The US economy is forecast to expand by 1.6 per cent in 2023, instead of 1.4 per cent as previously projected and lower than the 2.1 per cent growth recorded last year, according to the latest data from the IMF. Its economy is projected to expand by 1.1 per cent in 2024.
