What Is the Net Worth to Be Considered Wealthy?
Published: October 28, 2022
Have you ever considered how much money you’d need to be wealthy? While different people define rich differently, it’s commonly thought to be having a large number of material assets or resources.
Read on to find out what’s considered wealthy and other exciting stats and facts.
What Is the Net Worth to Be Considered Wealthy?
(Source: About Schwab)
In a survey conducted in 2021, Americans said that it takes about $1.9 million in personal net worth to be considered wealthy. And there were 5.2 million new millionaires in 2020.
Before we continue, you should know that net worth vs. income is different. Income represents the money you earn from your job and other sources, whereas net worth represents your total assets minus your debts.
More Stats and Facts About Wealthy People
Did you know that the world has more than 56.1 million millionaires?
Keep reading to find out to which class you belong.
What is considered middle class?
(Source: Investopedia)
Middle-class households earn between two-thirds and double the median US household income of $65,000 in 2021. Middle–class salary range is between $43,350 and $130,000.
In 2018, 52% of the US population was in the middle class.
What is the net worth of the top 5 percent?
(Source: Kiplinger)
In 2022, people with the top 1 percent of net worth in the US had $10,815,000.
The top 2% of the population had a net worth of $2,472,000. The top 5% had $1,030,000 in their accounts. The top 10% of earners had a net worth of $854,900.
What is upper-class income?
(Source: Investopedia / Financial Samurai)
The term upper class means that these people hold the highest social position and status. These individuals are regarded as the wealthiest, ranking above the working and middle classes.
According to a 2018 study, 19% of American adults grew up in upper-class families. In 2016, these families earned a median income of $187,872. And in 2022, an upper-class income in America is $100,000 and higher.
What is considered a millionaire?
(Source: The Balance)
A person is considered a millionaire when their net worth, or assets minus liabilities, exceeds $1 million. New Jersey is the state with the highest percentage of millionaires.
Some argue that only liquid assets should count when it comes to the status of a millionaire, such as securities and cash because physical assets are more difficult to sell.
What is the average age of rich people?
(Source: Statista)
Half of the 3,311 billionaires in the world in 2021 were between the ages of 50 and 70. Furthermore, 40% were over the age of 70, while only 10% were under the age of 50.
Men account for the vast majority of the world’s billionaires. However, the wealthiest woman in the world has a net worth of $74.8 billion.
Wrapping Up
The more you learn and develop your financial literacy, the easier it’ll be to understand your finances and build wealth. But the reality is that we can’t all be in the same class, and that’s fine! Not everyone who dreams of being rich can become one. But we can all work toward it.
Hopefully, we’ve helped you understand in which class you belong and what it takes to be considered wealthy.
