The amount of money that, according to American opinion, must be earned before one can consider oneself wealthy.
There is a lot of advice out there that can help you live a more luxurious life on a tight budget. But Americans say that a high annual income is the most important thing when it comes to feeling rich.
When asked how much money they’d need to make each year to feel rich, most Americans said at least $200,000.
Many tried to reach even further. Most people said they need to make at least $1 million a year to feel rich, and 22% said they need to make seven figures to feel rich.
Consumers of all ages and races are mostly in agreement about how much money they need to feel rich. 60% of men need at least $200,000 in income before they can call themselves rich, while only 53% of women feel that way.
But the amount of money you make right now seems most likely to change your idea of how much you’ll need to feel wealthy.
82% of people making at least $100,000 a year say they need at least $200,000 to feel rich, compared to 57% of people making between $50,000 and $99,999 who say the same thing.
Only 39% of people who make less than $50,000 are in this group. In the same way, 34% of people who make less than $100,000 a year say that making between $100,000 and $149,000 a year would make them feel rich.
People who make a lot of money may remember how much money made them feel wealthy in the past.The cost of living could also be pushing up their idea of what it means to be “rich.” For example, someone who makes $200,000 a year but doesn’t know how to handle their money well might not feel wealthy.
Things like family life, personal assets, and goals may also have an impact.
Everyone has a different idea of what it means to be “rich,” but in the U.S., being part of “the 1%” has come to mean being wealthy. The Economic Policy Institute says that in 2020, the top 1% of earners in the U.S. will make an average of $823,763 per year.
And because living costs vary a lot from place to place, someone who feels rich in Des Moines might not feel the same way in San Francisco.