The American dream of becoming a millionaire is more attainable than ever before. According to Statista, more than 22.7 million Americans will have a net worth of more than $1 million in 2022. Plus, even though inflation is slowing down, many things are still expensive, making it harder to save and increasing expenses.
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However, $1 million isn't worth as much as it used to, and recent studies have found that this is impacting the majority of billionaires' perception of their wealth. According to a survey by Ameriprise Financial, 91% of American billionaires don't consider themselves to be part of the upper-middle class. The survey also found that 60% and 31% of investors with assets over $1 million considered themselves to be “upper-middle class” and “part of the middle class,” respectively.
The 2023 Chubb Wealth Report supports this notion, noting that many affluent Americans don't consider themselves wealthy and that achieving financial success has never been harder: Chubb's survey found that 68% of respondents, including those with more than $10 million in investable assets, don't consider themselves wealthy.
First, it now takes more assets to be considered wealthy — research suggests you'll need $2.2 million to be “wealthy” in 2023 — but that's not the only reason people are rethinking the definition.
The COVID-19 pandemic has contributed to a shift in the definition of wealth. In fact, happiness has now replaced money as the measure of wealth for most adults, according to the latest Charles Schwab Contemporary Wealth Survey. When participants were asked what being wealthy means to them, respondents overall were more likely to cite happiness (40%) than money (32%) or assets (26%).
Nearly two-thirds (62%) of those surveyed by Schwab said that having healthy relationships with the people you love better describes what wealth means to them than having a lot of money. “Whether you know it or not, happiness is far more important,” CFP and financial psychologist Brad Klontz told CNBC. “One of the risks we take is thinking that a certain amount of money is going to bring us happiness and peace of mind and improve our lives and relationships.”
Marcy Keckler, senior vice president of financial advice strategies at Ameriprise, echoes this view on wealth. “While there's no standard definition of being wealthy, investors generally equate it with having the means to live life on their terms,” Keckler says. “Whether that means $1 million, $10 million, or any other amount, building wealth requires planning, prioritization, and taking steps to protect your future.”
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This article originally appeared on GOBankingRates.com: Middle-Class Millionaires? Why 91% Don't Consider Themselves Wealthy