How much money do you need to have to be considered wealthy in these big US cities?
Though some will speak of the merits of emotional and spiritual wealth, when we talk about wealth many of us think in terms of spending power and cash.
Opinion may vary widely on what the definition of wealthy in the United States is, but rest assured when it comes to the actual facts and figures, it really comes down to what city you live in and not just what you have in the bank.
What is ‘wealthy’ in the major American cities?
According to financial services company Charles Schwab’s annual Modern Wealth Survey, if you ask the average American what they’d require in order to feel wealthy, they will tell you a minimum of $2.2 million on average. Yet, as much as that may sound like a sizeable chunk of change, it’s not actually enough to be considered truly rich in certain cities across the country. If we consider San Francisco for example, you will need a net worth of roughly $4.7 million, which believe it or not is actually a drop from the $5.2 million that was the average for the city in last year’s survey. Of course, it still remains well above the median household’s net worth in the U.S.A. which currently stands at $121,700 according to the Federal Reserve’s most recent statistics. With no further ado, here is a look at the findings from the survey which examined the 12 largest metropolitan areas in the country, covering 13 major cities. The average net worth you need to be considered wealthy in these locations is as follows:
- San Francisco: $4.7 million
- New York City: $3.3 million
- Southern California (includes Los Angeles and San Diego): $3.5 million
- Seattle: $3.1 million
- Washington, D.C.: $3 million
- Chicago: $2.3 million
- Houston: $2.1 million
- Boston: $2.9 million
- Dallas: $2.3 million
- Atlanta: $2.3 million
- Phoenix: $2.4 million
- Denver: $2.5 million
*Net worth is a measure of the value of the assets a person or corporation owns, minus the liabilities they owe.*
So, how many Americans ‘feel’ wealthy?
As you can probably see, those are some sizeable numbers, however, it’s worth noting that only 48% of Americans say they feel wealthy. Of those that do, their average net worth is $560,000. This is where the debate about the definition of wealth itself comes into play, as 7 out of 10 Americans polled say that wealth is more to do with not stressing about money, rather than one’s net worth. Indeed, being rather subjective in nature, the term ‘wealth’ is also defined by almost two-thirds of the survey’s respondents as the enjoyment of relationships with loved ones, as opposed to having a great deal of money. Lastly, it’s worth noting that some 66% of respondents say that having more time is of greater importance than money. Conducted back in March, the online survey sampled between 500 and 750 residents in each of the above-mentioned locations between the ages of 21 and 75.