Many Americans feel wealthy — but don’t necessarily measure it in dollars and cents. Well-being, not money, has become the leading measure of wealth for most adults today, according to the new Charles Schwab Modern Wealth Survey.
It takes an average net worth of $2.2 million to be considered “wealthy,” the survey found — but that’s the estimate respondents gave for other people.
What about you? Are you rich? How much money does it take for you to consider yourself wealthy?
More from Personal Finance:
‘Quiet luxury’ may be Americans’ most expensive trend ever
3 steps to take before you start investing
Social Security may be key issue for GOP presidential rivals
Of the 1,000 adults surveyed, about 48% say they already feel wealthy. Yet their average net worth is $560,000 — about a quarter of what they think others need to be rich.
Millennials are overwhelmingly more likely to say they feel wealthy — with 57% of those ages 26 to 41 saying they feel this way, compared with only about 40% of Gen Z, Gen X and baby boomers. For millennials who say they feel wealthy, their average net worth is about $530,000.
Wealth is a ‘very personal’ definition
“The definition of wealth is very personal, and it should be unique to one’s experience,” said certified financial planner Preston D. Cherry, founder and president of Concurrent Financial Planning in Green Bay, Wisconsin. He stresses the importance of having a financial plan based on your own wants and needs.
“If you do nothing, then nothing will happen,” said Cherry, who is a member of CNBC’s Financial Advisor Council.
One of the risks we run is thinking a certain amount of money is going to bring us happiness …
Brad Klontz
managing principal of Your Mental Wealth Advisors
How wealth and well-being intersect
When asked to characterize what being wealthy means to them, respondents overall mentioned their well-being (40%) more often than money (32%) and assets (26%). In 2017, the top response to what wealth means was money (27%).
“Whether they know it or not, well-being is much more important,” said CFP and financial psychologist Brad Klontz, a managing principal of Your Mental Wealth Advisors in Boulder, Colorado.
“One of the risks we run is thinking a certain amount of money is going to bring us happiness, bring us peace, improve our lives, improve our relationships,” said Klontz, who is also a member of CNBC’s Financial Advisor Council.
“Unfortunately some people will sacrifice what matters most to them ultimately, in their goal to achieve an arbitrary wealth number.”
Yet, nearly two-thirds, 62%, of adults in the Schwab survey say enjoying healthy relationships with their loved ones better describes what wealth means than having a lot of money (38%). And, 7 in 10 adults say wealth is about not having to stress over money, not having more of it.
SIGN UP: Join top advisors, investors, market experts, technologists, and economists at the virtual Financial Advisor Summit on Thursday, June 15. They’ll discuss the market risks ahead, potential buying opportunities and tools advisors can use to generate consistent returns. Go to cnbcevents.com/financial-advisor to register.