What net worth is considered rich in USA? For Sarah, a teacher in Ohio, wealth means having enough liquid assets and savings to cover her daughter’s college tuition without stress—meeting her long-term financial goals. For Mark, a tech worker in San Francisco, it’s the freedom to quit his job, manage his personal finance on his own terms, and even start a nonprofit. But as we’ll explore, wealth is about far more than just dollar signs, annual income, or even the balance in your bank accounts.
What Does “Rich” Really Mean?
Traditionally, wealth is measured by income, assets, and net worth (the total assets minus debts, including bank and brokerage accounts). Yet a six-figure annual income in an expensive city like New York or San Francisco—where cost of living and housing prices are steep—might barely cover rent. In contrast, that same income in a cheaper city or rural area could feel luxurious. The Federal Reserve’s Survey of Consumer Finances reports that the median net worth of U.S. households was only $193,000 in 2022—well below the $2.5 million “rich” threshold. This gap underscores not only income disparities and differences in average income versus median income, but also how American households’ combined wealth varies greatly by region.
Read also : What Percentage of Americans Have a Net Worth of Over $1 Million?
Beyond the Numbers: Diverse Definitions of Wealth
For many, wealth is generational. Some families build wealth over time through homeownership, a mix of asset classes, and even passive income streams. For others, it’s a first-time achievement. Still, surveys like those from Charles Schwab & Co. (and its banking subsidiary, Charles Schwab Bank) can be biased. After all, a financial planner or advisor working with someone earning $50K per year will offer a very different definition of wealth than one advising an ultra-high-net-worth individual or even someone like Jeff Bezos—the richest person on record.
Additional reports—including those from the Boston Consulting Group Global Wealth Report and analyses by Knight Frank—highlight that wealth goals vary based on local cost of living, risk tolerance, and even experiences with friends discussing personal finance. In many cases, factors like monthly income, annual income requirements, and benchmarks for wealth are as personal as they are numerical.
What net worth is considered rich in USA?
Let’s break down the numbers and compare national averages with regional thresholds:
- Median Household Income: $74,580 (U.S. Census Bureau, 2022)
(Note: “household income” here reflects both the average family’s earnings and the annual income needed to meet cost-of-living demands.) - Average (Mean) Net Worth: $1.06 million
(This figure is heavily skewed by high-net-worth individuals, including those in the upper wealth tier.) - Median Net Worth: $193,000 (Federal Reserve, 2022)
Why the gap? The top 1% hold 32% of U.S. wealth, while the bottom 50% own just 2.6%. For most American families, wealth isn’t about yachts or private jets—it’s about financial comfort and security. In fact, the Schwab survey found that an average net worth of $778,000 is seen as the benchmark for a “comfortable” life.
The Regional Divide: How Location Shapes Wealth
A dollar stretches further in some regions than in others. Consider these “wealthy” thresholds from the Schwab survey:
| City | Net Worth Needed to Feel “Wealthy” |
|---|---|
| San Francisco, CA | $4.4 million |
| New York, NY | $3.3 million |
| Houston, TX | $2.6 million |
| Phoenix, AZ | $2.4 million |
| San Diego, CA (example) | Varies—but Southern California generally demands higher benchmarks |
In San Francisco—where the median home price is about $1.3 million—a net worth of $4.4 million might cover not only housing but also retirement savings, diversified asset types (from growth-oriented assets to taxable accounts), and even investments in the stock market. Meanwhile, in Phoenix, that same net worth could fuel a lavish lifestyle with more affordable housing and lower cost-of-living pressures. These differences highlight how income metros and major cities set distinct thresholds by city.
Generational Differences: Boomers vs. Gen Z
How we define wealth can depend on our stage of life.
- Baby Boomers: On average, they view wealth as around $2.8 million. Raised during post-war prosperity, they often prioritize homeownership, pensions, and even a college degree as part of their financial planner’s advice.
- Millennials: With a benchmark of roughly $2.2 million, many face the challenge of student loans and credit card debt—even as they juggle multiple asset classes and liquid assets.
- Gen Z: For this generation, a net worth of about $1.2 million is considered sufficient. Their focus on work-life balance, mental health, and flexible income (including passive income opportunities) is reshaping the definition of financial success.
For Gen Z, wealth is about freedom to choose—from remote work and sustainable living to starting a TikTok business—and from managing both annual and monthly income to meeting diverse financial goals.
The Racial Wealth Gap: A Legacy of Inequality
Systemic barriers have created stark disparities in American wealth:
- White families: Median wealth of roughly $188,200 (2019)
- Black families: Approximately $24,100 (just 13% of white families’ wealth)
- Hispanic families: Around $36,100 (about 19% of white families’ wealth)
Historical factors such as redlining (which denied loans based on neighborhood color with wealth implications) and unequal education funding continue to impact access to wealth. Reports indicate that many neighborhoods once labeled “hazardous” still struggle with low median wealth and average family income—illustrating the profound income disparities among people of color.
Beyond Money: The Intangible Aspects of Wealth
Wealth isn’t solely about having bank accounts brimming with cash or diversified brokerage accounts. Consider these often-overlooked aspects:
- Health: In the Schwab survey, 64% of Americans stated that good health is an essential form of wealth.
- Time: 60% value flexibility—often more than a higher salary or an impressive annual rate of return on investments.
- Relationships: Strong social ties and shared experiences with friends can boost overall happiness, sometimes even more than financial wealth.
- Personal Fulfillment: For many, financial comfort isn’t measured by the combined wealth in various asset types, but by the peace of mind that comes from knowing you can cover unexpected expenses or even manage a balance transfer on a high-interest credit card.
Building Wealth: Practical Steps for Everyone
Achieving your financial goals requires a multifaceted approach that blends personal finance strategy with smart investing:
- Budget Like a Pro:
Use the 50/30/20 rule—allocate 50% of your income for needs, 30% for wants, and 20% for savings. With many apps available (like Mint), you can track both annual and monthly income effortlessly. - Kill Debt:
Prioritize eliminating high-interest credit card debt. Financial advisors often recommend the debt snowball method—tackling the smallest debts first—to build momentum, a strategy supported by chief credit analysts. - Invest Early:
Imagine a 25-year-old investing $500/month in a diversified basket of stocks, tax-advantaged retirement accounts, and even some private equity. With an average rate of return around 7%, that individual could amass approximately $1.4 million by age 65. Tracking your growth rate across different asset classes and asset types is key. - Earn More:
Consider negotiating raises, freelancing, or even renting out a room on Airbnb. Many platforms now offer advisor matches to connect you with a financial planner who can help optimize your asset allocation.
Wealth and Responsibility: Giving Back Matters
With great wealth comes the responsibility to give back. Here are a few ideas:
- Philanthropy:
Look at figures like MacKenzie Scott, who has donated $14 billion to nonprofits. - Sustainable Investing:
Allocate funds to ESG (Environmental, Social, Governance) stocks—another area where your asset classes can diversify. - Community Support:
Whether you’re part of one of the biggest cities or a cheaper city, supporting local businesses and mentoring startups can be as valuable as any financial planner’s advice.
Defining “Enough”: Wealth as Fulfillment
As David Rockefeller famously said, “Wealth is not about having a lot of money; it’s about having a lot of options.” For Emily, a nurse in Vermont, “enough” means a paid-off home and weekends spent hiking with her family—achieving a benchmark for wealth that goes beyond mere numbers. For Carlos, a barista in Miami, wealth is measured by his ability to cover his mom’s medical bills while keeping up with his monthly income needs.
Conclusion: Your Wealth, Your Rules
Wealth isn’t a static number—it’s about security, freedom, and legacy. Whether your goal is $200K or $2 million, align your finances with your values and aspirations. Reflect on what “wealth” means to you—be it access to wealth through diversified asset types, a solid annual income, or simply the financial comfort that comes from managing both credit card debt and growth-oriented assets.
Take the first step today:
- Assess your median income and household income.
- Use tools like the SEC’s compound interest calculator to map out your growth rate.
- And don’t hesitate to consult a trusted financial advisor or planner—credentials such as the ADV for investment advisers can help ensure you’re in capable hands.
Remember, wealth is as much about personal fulfillment and sustainable living as it is about the numbers on a balance sheet. Whether you’re in North America, Latin America, or even international cities like Hong Kong, your definition of wealth should reflect your unique experiences, financial goals, and even your experiences with friends discussing personal finance.
Disclosure: Affiliates • Subject to Investment Risks
FAQs
- What net worth is wealthy in 2025?
While definitions vary, a net worth of around $2 million or more is commonly viewed as wealthy—though local cost-of-living and annual income requirements can shift this benchmark. - Does net worth include your home?
Yes. Your net worth factors in all assets—from real estate (like a mansion) to bank accounts and brokerage accounts—minus any liabilities such as mortgages. - What net worth puts you in the top 10%?
Recent data suggests a net worth of roughly $1.9 million or more is needed to rank in the top 10% of American households. - What is considered wealthy in retirement?
Many experts agree that a net worth of at least $1 million is a good starting point for retirement—though this depends on lifestyle and location. - What net worth puts you in the top 2%?
Typically, a net worth of around $10 million or more is needed to be in the top 2% of U.S. wealth. - What’s considered a high net worth?
A high net worth is usually defined as having $1 million or more in liquid financial assets, excluding your primary residence. - How many people in America have a net worth over $20 million?
Estimates suggest that roughly 200,000 to 250,000 households in the United States exceed this level of wealth. - Are you wealthy or just rich?
“Rich” often refers to high income, while “wealthy” denotes the accumulation of assets and financial security over time. - What net worth makes you rich?
In many surveys, including those by Charles Schwab, a net worth of $2 million or more is considered rich—but this depends on individual circumstances. - What percentage of the U.S. population has $10 million dollars?
Approximately 1% of Americans have a net worth of $10 million or more. - What salary is considered rich in the USA?
A salary of $250,000 or more per year is often viewed as rich—though this again depends on factors like cost of living and debt levels. - What percentile is a $3 million net worth?
A net worth of $3 million typically places an individual in the top 5% of U.S. wealth.
Your turn: What’s your definition of wealth? Whether you’re tracking your asset classes, evaluating your risk tolerance, or simply calculating your average balance across bank accounts, share your story in the comments below!
