How much money would you need in the bank to feel financially comfortable? That’s what a new poll from Charles Schwab asked respondents and it turns out, Americans consider $839-thousand the magic number.
According to the financial services company’s Modern Wealth Survey of 22-hundred adults, there’s a big difference between comfort and wealth, we’re talking an almost $1.5-million difference. When asked how much it takes to be considered wealthy, the average answer was much higher at $2.3-million.
- With the bar set so high, it’s not surprising that only 11% believe they’re wealthy now, but another 24% think they’re on track to become wealthy.
- Younger Americans are the most optimistic about achieving wealth, as 43% of Gen Z and 42% of millennials report being wealthy now or on track to become so.
- Financial comfort isn’t a reality for many yet either, with only 20% of all respondents reporting feeling comfortable now. More than a quarter (28%) say they’re on track to get there.
- Overall, 31% of all respondents have a documented plan for their financial goals, but younger generations are more likely to, as 39% of Gen Z does, compared to just 27% of Gen X.
- But eight in 10 Americans feel wealthy when it comes to the quality of their relationships (83%), their happiness (83%) and the amount of free time they have (81%).
The survey also asked Americans to define what “wealthy” means to them and the most common answers include:
- Happiness (45%)
- “Amount of money I have” (44%)
- Physical health (37%)
- Mental health (32%)
- “Quality of my relationships” (24%)
- Life experiences (24%)
- Accomplishments (20%)
- Amount of free time (18%)
- Material possessions (17%)
Source: USA Today