Five facts about the American rich that will surprise you

What does it take to feel wealthy in the USA in 2023? What income allows you to be considered a rich American, and is it all about money? USAToday.

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Median household wealth reached $192 last year, up 900% from 37, the biggest jump in the history of the Federal Reserve's Consumer Finance Survey.

But inflation also hit a 40-year high in 2022, and in 2023 interest rates rose to their highest level in 22 years. As a result, everyone's wallet is a little lighter.

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Many Americans still strive for that first million. However, due to inflation, an item that cost $1 million in 2019 would cost $1,2 million today.

In a recent survey of 2000 Americans by personal finance site LendingTree, 59% said they don't believe they will ever become rich. So here are five numbers that illustrate what it means to be rich in America today.

$ 2,6 million

This huge amount represents the income of the average American family, which belongs to the top 10% range of wealthy Americans. Most of us would consider such a family rich. This figure comes from a federal survey of consumer finances released Oct. 18.

"Generally speaking, we can consider the top 10% of households to be wealthy," said Christian de Ritis, deputy chief economist at Moody's Analytics.

Between 2019 and 2022, household wealth grew at a record pace. The government has rolled out an unprecedented round of stimulus checks. The quarantine kept Americans at home and encouraged savings. Stocks and home values ​​rose.

But inflation and rising interest rates have slowed this process.

"The market was down last year and still hasn't recovered from the peaks of late 2021, that's all," said Robert Brokamp, ​​senior retirement advisor at The Motley Fool and a certified financial planner.

$ 483

That's what Americans think they need to earn in a year to become rich, according to an online survey of 2521 adults conducted by YouGov for Bankrate June 5-7, 2023. Sound scary? This figure is more than six times the average salary earned by full-time workers ($2021 in 75), according to the U.S. Census.

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In a Bankrate survey, 72% of Americans said they feel financially insecure due to persistent inflation and rising interest rates. However, financial experts warn that income does not always equal wealth.

“You may make half a million dollars, but how many assets do you have? How much debt do you have? said Elizabeth Ayoula, personal finance consultant at NerdWallet.

$ 2,2 million

That's how much net worth an American must have to be considered wealthy in 2023, according to the Charles Schwab Modern Wealth Survey.

More than 1000 adults were surveyed online in March. Americans were asked how much money a person in their area needed to be rich.

This is an annual study. You can expect this figure to increase slightly each year along with inflation. But you are wrong. Back in 2020, respondents believed that Americans needed $2,6 million to become rich.

“Surveys like these are interesting because they tap into opinions and tap into emotions,” said Rob Williams, managing director of financial planning, retirement income and wealth at Schwab.

$ 560

That amount represents the average net worth of Americans who will actually feel rich in 2023, according to the same Schwab survey. According to Schwab, nearly half of Americans feel rich, and their average household wealth falls far short of the $2,2 million they're aiming for.

“Simply put, you can feel rich and have less money,” Williams said.

When Americans are asked to describe wealth in their own words, they talk about money and assets. But they also talk about intangible things: well-being, health and freedom to spend time with loved ones.

“It’s encouraging,” Williams said.

$1 million

The term "millionaire" may have lost some of its luster, but it remains the benchmark for American wealth.

“There's no doubt that $1 million is the magic number,” said Matt Schultz, chief credit analyst at LendingTree. “It doesn’t mean your life is easy or that you’re Jeff Bezos or Bill Gates, but it does mean you have a level of wealth that most people can only dream of.”

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Vanguard, an investment management company, defines an investment of $1 million as high net worth.

The average American family now reports a net worth of nearly $1,1 million, according to a new study. That sounds like a lot of money. But super-wealthy families skew the average. According to the study, the average middle-class American family has a net worth of $193.

Financial advisors often say that wealth is not so much a number as it is a feeling. For many Americans, it's a feeling of security.

The Consumer Financial Protection Bureau offers convenient calculator financial well-being. It asks, among other things, whether you can handle unexpected expenses, whether a wedding or birthday gift could ruin your finances, and whether you have money at the end of the month.

The Motley Fool's Brokamp puts it more succinctly:

“Will you be able to pay your bills, will you be able to achieve your goals, and will you be able to withstand the financial shock? If you can answer yes to these questions, you are doing well.”

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