Is earning a six-figure salary the key to being rich in America? Surprisingly, only 23% of Americans believe a six-figure income qualifies someone as “rich.” Instead, people now link true wealth to financial security, happiness, and peace of mind — not just a high paycheck. This article breaks down what Americans really think “being rich” looks like in 2025, offering clear insights and practical advice for anyone looking to understand wealth today.
Why “Six Figures” Isn’t the Gold Standard Anymore
Not so long ago, making over $100,000 a year typically meant you were doing better than most. But today, rising living costs, inflation, student loans, and housing expenses have shifted perceptions. Many Americans earning six figures still feel like they are living paycheck to paycheck and don’t view themselves as wealthy.
So, what matters more than just income? Increasingly, people focus on net worth, financial comfort, and the ability to live without money worries.
Only 23% of Americans Think 6 Figures Makes You Rich
| Topic | Data / Insights |
|---|---|
| Six-Figure Income Seen as Rich | Only 23% of Americans agree |
| Net Worth Needed to Be “Wealthy” | $2.3 million (average) |
| Net Worth for “Financial Comfort” | $839,000 (average) |
| Americans Who Value Happiness in Wealth | 45% |
| Americans Who Value Money in Wealth | 44% |
| Percentage with a Financial Plan | 31% |
| Generational Differences in “Comfortable” | Gen Z: $329k; Millennials: $847k; Gen X: $783k; Boomers: $943k |
Today, being “rich” means much more than earning a six-figure salary. For most Americans, true wealth is about financial security, being debt-free, and living happily and comfortably. Building real wealth involves setting personal goals, creating financial plans, saving consistently, investing wisely, and adapting as life changes. Understanding these shifting definitions helps anyone better navigate their financial journey and plan for a more secure future.
What Does It Really Mean to Be “Rich” in America Today?
Net Worth Matters More Than Income
Rather than just salary, Americans now focus on net worth—the total of everything you own minus what you owe. The 2025 Charles Schwab Modern Wealth Survey found that most believe you need an average net worth of $2.3 million to be considered truly wealthy.
Practical Example:
If you own a $600,000 home, have $200,000 in savings, and $50,000 invested, but owe $100,000 on your mortgage and $25,000 on car loans, your net worth is $725,000. That’s a big number, but still far from the “wealthy” benchmark.
Financial Comfort Is More Achievable
While “wealthy” may feel out of reach, Americans say being financially comfortable requires about $839,000 in net worth on average. Younger generations have lower thresholds—Gen Z says $329,000 is enough to feel comfortable, while Baby Boomers set that bar close to $943,000.
Wealth Is About More Than Money
The survey also revealed a shift in values about wealth:
- 45% said happiness is the most important part of feeling wealthy.
- 44% focused on the amount of money they have.
- Others pointed out that being debt-free, having peace of mind, good health, strong relationships, and free time are central to feeling rich.
People want financial security that allows them to live without constant money worries—not just a big salary or flashy possessions.
Why This Shift?
The cost of living, especially housing and healthcare, has risen steeply. Even a six-figure salary often isn’t enough to cover all expenses comfortably, especially in large cities.
How to Build Real Wealth: A Practical Guide
1. Define Your Own Financial Goals
What does “wealth” mean personally? It may be owning your home, living debt-free, having a retirement fund, or achieving peace of mind. Set clear, personal targets to stay motivated and focused.
2. Create and Follow a Financial Plan
Surprisingly, only 31% of Americans have a formal financial plan, but those who do tend to progress better towards their goals. Use available tools and surveys like the Charles Schwab Modern Wealth Survey to benchmark your progress.
3. Save Consistently and Build an Emergency Fund
Start by saving 10% of your income monthly. Build an emergency fund covering 3 to 6 months of expenses before taking bigger investment risks.
4. Invest Wisely and Regularly
Wealth usually grows through consistent investing rather than quick wins. Consider long-term investments such as index funds or retirement accounts, which offer steady growth over time.
5. Pay Off High-Interest Debt
Credit card and personal loan debts reduce your ability to save and invest. Focus on clearing these debts as soon as possible to free up resources for wealth-building.
6. Review and Adapt Your Plan
Financial needs change through life stages. Regularly review and adjust your goals and strategies to reflect your current situation and priorities.
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FAQs About Only 23% of Americans Think 6 Figures Makes You Rich
Q1: Does earning $100,000 a year mean I’m rich?
No. Most Americans now see six figures as upper middle class rather than “rich,” especially given high living costs.
Q2: How much net worth do I need to be considered wealthy?
On average, about $2.3 million in net worth is viewed as the cutoff for wealth.
Q3: What’s the difference between being wealthy and financially comfortable?
Wealthy means having abundant resources and freedom; financially comfortable means living without financial stress, typically around $839,000 net worth.
Q4: Do younger generations have different wealth targets?
Yes. Younger groups like Gen Z set lower comfort and wealth thresholds compared to older generations, reflecting different life stages and expectations.
Q5: What non-financial factors affect the feeling of wealth?
Happiness, health, relationships, and peace of mind are now considered as important as money itself in defining wealth.
