Considering yourself ‘rich’ can have multiple meanings, from quality of life to how much money you have in your bank account.
According to a yearly survey conducted by financial investment company Charles Schwab, the average American believes that in 2024, being considered rich requires a net worth of $2.5 million.
In Dallas, that number is a little lower, reported Fox 4 KDFW, with respondents saying $2.2 million would do the trick.
Over 50% of respondents reported feeling that they are more successful at investing than their parents were at the same age. Additionally, over half of the respondents believe they are living a more desired lifestyle than their parents at the same age.
Yet, only 18%, one in five Americans, indicated that they presently have control over their financial situation.
The Dallas Express recently showcased ‘America Saves’ 54 ways to save money. It appears many of us should examine the tips closely.
However, Forbes Advisor’s most recent survey indicates that it may be more difficult to save money nowadays. The survey showed that increasing living expenses are the main obstacle to saving more (66%), followed by the need to repay debts (31%).
Additionally, according to the survey, approximately 28% of people across all age groups in the U.S. currently have savings totaling less than $1,000. This amount encompasses emergency funds, non-employer retirement accounts, and investments.
To make matters worse, LendingTree reported that the total credit card balance for Americans in the second quarter of 2024 was $1.142 trillion, according to the most recent consumer debt data from the Federal Reserve Bank of New York. The balance has risen from $1.115 trillion in the initial quarter of 2024 and is the largest amount reported since the New York Fed began monitoring in 1999.
In the second quarter of 2024, the typical APR for credit cards was around 21.51%, making it challenging for Americans to settle their debts if they are not paying off their cards in full each month.
As such, perhaps we should reevaluate the meaning of being “rich.” Depending upon our life stage, location, health, etc., being rich is subjective, at best.
More importantly, in a world where financial stability is fragile, finding contentment and a firm footing with what you have and whom you love is often a better indicator of true wealth.