How Much Money Do You Need to Be Rich?
Surveys and data set a financial threshold for being considered rich, while also questioning the very concept of "wealth."

Erin Bendig
Think you know what it takes to be rich in America? How much is enough to afford a rich lifestyle, and what does being wealthy actually mean?
Surveys and data find a surprising snapshot of these constantly moving financial goalposts. While there certainly are thresholds that make a person wealthier than most, that doesn't necessarily mean they consider themselves "rich." After all, being rich might be nothing more than a state of mind — or another person's perceptions.
Most Americans feel they need to make over $186,000 a year, on average, just to live comfortably, according to a 2024 Bankrate study. That's two times more than what the average full-time, year-round worker earned in 2022 (about $79,000 according to Census Bureau data). Just 25% of Americans say they are completely financially secure, down from 28% in 2023, and 30% of individuals who are not completely financially secure believe they likely never will be.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
That study also found that in order to feel rich, Americans believe they need to make $520,000 on average, an 8% increase from $483,000 in 2023. However, how much you actually need depends on what you personally consider "rich." You may be experiencing "lifestyle inflation" where the more money you make, the more you think you need to earn to be financially secure.
Or maybe you live in a state where you'll need to earn a hefty salary to be among the top 5% of earners. For example, the median income of the top 5% is more than $500,000 annually in Washington, California, Massachusetts, Hawaii, Virginia, Colorado, New York, New Jersey, Illinois, Maryland, Connecticut and the District of Columbia, according to a GoBankingRates study looking at how much the definition of rich has changed in each state.
Meanwhile, the median income of the top 5% is less than $400,000 annually in Arkansas, Maine, West Virginia, Kentucky, Mississippi, Alabama, Indiana, South Dakota, Louisiana, New Mexico, Oklahoma and Iowa.
Certainly, relativity matters in how much you need to be considered rich.
Relativity also includes age. The two youngest adult generations self-reported the highest levels of financial comfort in a Charles Schwab survey. Roughly 29% of Gen Z and 28% of Millennials surveyed said they're on track to be wealthy. By comparison, only 13% of Boomers and 18% of Gen X surveyed believe they're on the right track.
Some of this could be down to younger generations having more optimism due to the longer runway in front of them before retirement. A study on Gen Z saving habits revealed Gen Zers dedicating an impressive 30% of their salary towards retirement — markedly higher than millennials, Gen X and boomers — while starting at a much earlier age than older generations.
What net worth is considered rich?
The previous numbers looked at income, but what about net worth? An average net worth of $2.5 million is needed to be considered wealthy, according to Charles Schwab's 2024 Modern Wealth Survey, which asked 1,000 adults aged 21 to 75. An additional 200 Gen Zers also contributed to the survey. Here's a breakdown of wealth data by age:
Age group | Net worth to be wealthy | Net worth to be financially comfortable |
All Americans | $2.5 million | $778,000 |
Boomers | $2.8 million | $780,000 |
Gen X | $2.7 million | $873,000 |
Millennials | $2.2 million | $725,000 |
Gen Z | $1.2 million | $406,000 |
Schwab's survey also reveals that 64% of respondents feel they're on the right path to earn more than older generations. This clashes with wealth expectations, as the average net worth is only $560,000. So, what's going on here?
The survey authors explain that factors like family strength and good health increasingly factor into respondents' calculations of what "wealthy" means. According to the data, four in 10 Americans define wealth in terms of "well-being," while only three in 10 describe it in terms of "money."
Digging further into the surprising data, respondents chose "enjoying experiences" over "owning nice things" by a ratio of 70% to 30%. They picked "healthy work-life balance" (69%) over "maximizing my earnings" (31%), and they preferred "enjoying healthy relationships with my loved ones" (62%) to "having a lot of money" (38%). Finally, respondents agreed that "having time" (61%) is more important to them than "having money" (39%).
Jonathan Craig, managing director and head of investor services at Charles Schwab, said, “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.”
The basics of building wealth
It's possible to build wealth at any age. Follow these wealth creation basics to steadily improve your financial picture:
- Start investing early in a steady portfolio that doesn't chase returns and has an appropriate risk profile for your age and financial picture. The easiest set-and-forget portfolio relies mainly on low-fee, market-tracking ETFs.
- Max out your savings in your company retirement plan to take advantage of tax-free savings growth and company matches (or "free money"). Self-employed workers can contribute to solo 401(k) plans, which allow you to contribute far more because you're both employer and employee.
- Pay off high-interest debt. Credit cards have an annual interest rate of 28.65%, according to Forbes. These sky-high interest payments can eat away at any wealth building progress you're making elsewhere. Consider using a balance transfer credit card with 0% APR to get a breather from excessive interest while you whittle down your debt.
- Watch your taxes. Adjust your withholdings to reduce your tax refunds and limit the amount that you're essentially loaning the government for free each year. Consult a tax planner or other tax resources to take advantage of all the deductions available to you.
- Boost and then protect your credit. Good credit raises your financial ceiling by unlocking the lowest rates on loans and even helping with your job search. Check your credit score at a free site such as CreditKarma or FreeCreditScore. Then get to work raising your score by paying off credit card debt, paying bills on time, raising your credit limit, and even requesting the removal of negative information like bankruptcies and collections.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Ben Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.
- Erin BendigPersonal Finance Writer
-
I'm 58 and unexpectedly inherited $650K. Does this change my retirement timeline?
We asked an expert financial adviser to weigh in.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
This Savings Account Earns You More Than $4,000. Here's How
See how a jumbo CD can help you reach your savings goals quicker.
-
These Are the Key Tariff Issues to Watch in Coming Months
While they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
What to Know About Treasury Inflation-Protected Securities (TIPS)
Understanding what Treasury Inflation-Protected Securities (TIPS) are and how to use them in a portfolio.
-
T-Mobile Offers Senior Phone Plans: Are The Perks Worth the Price?
T-Mobile has three senior phone plans. See which perks you receive with each.
-
Should You Switch to a Budget Wireless Carrier? What to Know About Trump Mobile and Other Low-Cost Options
With new names like Trump Mobile entering the market, many consumers are curious about affordable wireless plans. Here's how to tell if switching to a budget carrier could actually save you money — and what trade-offs to expect.
-
Bill Bought a Fridge, and Then His Nightmare Began
A Lowe's customer reached out to me after he encountered the retailer's 48-hour return window for major appliances when his brand-new fridge turned out to be defective.
-
Savvy Marketing Tips for Financial Pros From a Financial Pro
These strategies for marketing, client acquisition and retention can help financial professionals elevate their business and production.
-
Taste the Nation: Five James Beard Award–Winning Restaurants Worth Traveling For
From coastal kitchens to mountain towns, these celebrated restaurants don't just serve meals — they anchor destination-worthy trips for food lovers.