'Am I Rich?' $1 Million Doesn't Cut It Anymore

(investors)-- If you are wondering "Am I rich?" you'd better have more than a million bucks.

You need an average of $2.3 million in personal net worth to be thought of as "wealthy," according to a new 2019 Modern Wealth Survey from Charles Schwab.

That's 20 times the median net worth of U.S. households, says the Federal Reserve's Survey of Consumer Finances distributed in 2017.

Am I Rich?: Many Hopeful

While $2.3 million is quite a number to shoot for, more than half Americans hope they'll make it in a decade or less. Another 8% think they are already wealthy, although most who think that have just $700,000 in wealth. Once you are wealthy, you'll want to make sure you use estate planning to protect your money.

Am I Rich?: Happiness Matters

Above all, money isn't everything. More than 70% of American said it's not a number that defines wealth, but "the way they live their lives." That's where some financial troubles might kick in. More than 33% of American say spending habits are affected by images they see on social media. That's probably not where you want to pick up your spending habits.

"Spending is not the enemy, but when we allow social pressure or other forces to lure us into spending beyond our means, it can impact long-term financial stability and become a larger problem," says Terri Kallsen, executive vice president and head of Schwab Investor Services.

Barriers To Wealth

Americans' other habits hold them back from being wealthy. That includes the fact 59% still live paycheck and 44% that carry a credit card balance.

Another 62% of Americans don't have an emergency fund and on average, Americans spend $500 a month on "nonessential items."

 

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