See the U.S. net worth percentiles and what Americans think is the magic number for them to be considered rich.
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Are you rich? This is a question that many people ask themselves in quiet moments but would never have enough nerve to say out loud. What is the magic number to be considered rich, and what are the U.S. net worth percentiles?
Have you ever wondered if you’re considered wealthy by American standards? Maybe you’re doing okay financially, but you’re curious about where you stand compared to others As someone who’s spent years researching personal finance trends, I’ve noticed that the definition of “wealthy” isn’t as straightforward as most people think.
The Magic Number: What Makes You Wealthy in America
According to the latest Charles Schwab Modern Wealth Survey, Americans believe you need a net worth of approximately $23 million to be considered wealthy in 2025. This is actually down from $25 million in 2024, showing a slight shift in what people consider “rich” in the United States.
But here’s where it gets interesting – this number varies significantly depending on where you live
- West region: $3 million
- Northeast region: $2.4 million
- Midwest region: $2.1 million
- South region: $1.8 million
Living in California or Washington means you need a much higher net worth to feel wealthy compared to living in southern states. This makes perfect sense when you consider the crazy housing costs in places like San Francisco and Los Angeles!
Being “Comfortable” vs. Being “Wealthy”
There’s a big difference between feeling financially comfortable and truly wealthy. The threshold for financial comfort in 2025 stands at $839,000 in net worth nationwide, up from $778,000 in 2024.
Again, this comfort level varies by region:
- West: $1.1 million
- Northeast: $979,000
- Midwest: $800,000
- South: $615,000
I find it super interesting that nearly half of Americans feel they’re either already financially comfortable or on the path to get there. Meanwhile, about 25% believe they could achieve financial comfort with some lifestyle adjustments like reducing spending or increasing income.
What Average Americans Actually Earn
So that’s what people think makes you wealthy, but what do most Americans actually make?
The Census Bureau reported the average American household income at $80,610 in 2023. To be among the top 20% of earners, you’d need to bring in over $130,500 annually.
But if you wanna be considered truly rich – like in the top 1% of Americans – you’d need to earn above $540,009 according to the IRS. The Economic Policy Institute puts this figure even higher at $819,324 yearly. That’s between $45,000 to $68,277 per month!
The Geographic Wealth Divide
Where you live matters enormously when determining wealth. Average salaries vary dramatically across states:
- Highest average salaries: Massachusetts, New York, California ($74,000-$76,000)
- Lowest average salaries: Mississippi, Arkansas, West Virginia ($45,000-$49,000)
And to be considered middle class? In Maryland, Washington D.C., and Massachusetts, you need around $60,000 annually. Meanwhile, in Mississippi, you only need $32,640 to reach middle-class status.
Beyond the Numbers: What Does “Wealthy” Really Mean?
Interestingly, being wealthy isn’t just about money for many Americans. When asked what being wealthy means to them:
- 45% said happiness
- 44% cited the amount of money they have
- Many others mentioned physical and mental health, relationships, and free time
In fact, about 4 out of 5 Americans say they already feel wealthy when it comes to their relationships, happiness, and free time. This suggests that our definition of wealth extends well beyond our bank accounts.
The 50/20/30 Rule for Comfortable Living
Financial advisors and online influencers often recommend a 50/20/30 budget to live comfortably and secure your financial future:
- 50-60% for essentials (rent, mortgage, food, bills)
- 20% for savings, investments, or debt repayment
- 20-30% for “fun” (gifts, hobbies, entertainment, dining out)
This balance helps ensure you’re not just surviving but actually building wealth while still enjoying life.
Cost of Living Realities
Your wealth is also defined by how far your money goes. A family of four in the U.S. might spend just over $4,000 on monthly costs (excluding rent), while a single person might spend about $1,166 per month.
For perspective, the average cost of living across the U.S. is approximately 7% higher than living in France. That’s why comparing pure income numbers doesn’t always tell the full story!
Are You Wealthy? Tools to Find Out
Curious about where you stand? Try these calculators:
- The Pew Research Center’s wealth calculator tells you if you’re in the American middle class based on your state
- The Washington Post’s Are You Rich? calculator measures your net worth against your age, education level, and income
Why Do Americans Feel Wealth Is Harder to Achieve?
Despite the wealth threshold actually decreasing from 2024 to 2025, nearly two-thirds of Americans say it feels harder to reach wealthy status. The main reasons cited were:
- Inflation
- High interest rates
- Economic uncertainty
This reflects the reality many of us face – even as definitions of wealth shift, economic pressures make financial goals seem more distant.
The Generational Wealth Perspective
Different generations view wealth differently. Baby boomers believe you need about $2.8 million to be wealthy, higher than the national average.
Meanwhile, Gen Z and Millennials have lower thresholds for what they consider wealthy. In fact, 29% of Gen Z and Millennials feel optimistic about achieving a wealthy lifestyle, compared to just 21% of Americans overall.
Regional Wealth Expectations
Location dramatically impacts wealth expectations:
- Californians: Need $3-4 million to feel wealthy
- Residents of Atlanta, Chicago, Houston, Phoenix, and Dallas: Below the national average
These differences reflect both cost of living variations and cultural attitudes toward wealth across different regions.
My Thoughts on Wealth in America
After researching these wealth statistics, I’ve come to believe that “wealthy” is more subjective than most people realize. While a specific net worth might make you wealthy on paper, true wealth seems to involve a combination of:
- Financial security
- Freedom to make choices
- Time to spend as you wish
- Strong relationships
- Good health
I think many Americans are realizing that pursuing only the financial aspect of wealth might not lead to the satisfaction they seek. The fact that happiness ranks equally with money in definitions of wealth speaks volumes.
The Bottom Line
So what is considered wealthy in the US? In purely financial terms, it’s a net worth of $2.3 million in 2025, with significant regional variations. But the true answer is more nuanced and personal.
Whether you’re aiming for that $2.3 million benchmark or simply working toward your own definition of financial comfort, understanding these numbers provides valuable context for your financial journey.
What’s your definition of wealth? Is it purely financial, or does it include other factors? I’d love to hear your thoughts in the comments!
Be careful what you wish for?
Many view wealthy people as being evil and exploitive, or Scrooge types. The site dnyuz.com posed a question on Instagram: “Do you think you can be rich and be a good person?” The answers were split: 44% of respondents said “yes”, while 32% said “no.” We all know that you can be a jerk regardless of your net worth. It’s just strange that people are incredulous, or perhaps jealous, of something they themselves may covet.
Here’s an interesting thing about rich people: The richest 1% of people in the world create more than double the carbon emissions of the poorest. This makes sense, because they are flying around in private jets, and the poor, in many cases, don’t even have electricity. Oxfam International found that 1% of the richest people in the world accelerated climate change far more than any others, and the poor are hit the hardest by this.
U.S. net worth percentiles provide clearer picture
According to Schwab’s 2024 Modern Wealth Survey, Americans said that it takes an average net worth of $2.5 million to qualify a person as being wealthy, a bit of an uptick from $2.2 million in the surveys from 2022 and 2023. (Net worth is the sum of your assets minus your liabilities.)
To get a clearer picture of where you rank, check out the U.S. net worth percentiles according to The Kickass Entrepreneur, which also provides a net worth percentiles calculator to show you your percentile (if your percentile is, say, 40%, that means you’re richer than 40% of Americans):
What Does it Really Mean to Be Rich? | Top 10%, 5%, and 1% Net Worth and Income Explained
FAQ
What net worth is considered rich in retirement?
What net worth is considered upper class?
To be considered upper class, a net worth of at least $714,000 is the general threshold, which includes the 75th to 90th percentile of U.S. households. However, the net worth required can vary significantly by age and location. For example, while a household in their 50s might need a net worth of around $1.5 million to be upper class, a person in New York City might need $2 million to feel wealthy, and the required amount in a high-cost area like Miami could be $5 million to $10 million.