People always want to be “rich”. Some may argue that it is truly rich beyond any material. But, strictly speaking, financially, do you know what it takes to be rich in 2024? It combines income, net worth, and where you live. Definitions of wealth vary, but here we will see what is generally considered to be the case today, using some benchmark standards.
Don’t miss:
Income Threshold: What You Need to Earn
The top 20% of earners are usually classified as “upper class.” To earn the top 20% in the US, you’d need to pull in around $130,545 a year. But this number is not the same everywhere. For example, if you live in New Jersey, you’ll need about $180,558 to reach that mark. Meanwhile, in Mississippi, it’s even lower, at about $101,447.
If you want to be in the top 5%, the bar is higher. In Connecticut, for example, you must earn more than $600,000 a year. And if you want to be in the top 1%, you’re looking at an income of around $819,324 a year – or around $68,277 a month.
See also: Number of ‘401(k)’ Millionaires Up 43% From Last Year – Here are three ways to join the club.
Net Worth: What You Should Have
Regarding net worth, having $1 million in liquid assets often puts you in the ‘high net worth’ category. But if you want to be considered very high net worth, you may need anywhere from $5 million to $10 million. For those who aim higher, ultrahigh net worth status may include $30 million or more.
Interestingly, the perception of what makes a rich person has changed. According to Schwab’s Modern Wealth Survey, Americans now believe you need a net worth of about $2.2 million to be considered rich. This number is down slightly from 2020, when people thought $2.6 million was the magic number.
Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a target yield of 7-9% with monthly dividends
Location Matters: Cost of Living
Where you live plays a big role in becoming rich. In expensive places like New York or California, the income that must be in the top 20% is higher than in countries with a lower cost of living. Wealth isn’t just about money, it’s about what money can buy, and that changes depending on where you are.
Wealth Distribution: Who Gets What
Wealth in the US is not evenly distributed. The top 10% of households control a large share of the nation’s total wealth, with an average of about $6.7 million per household. On the other hand, the bottom 50% have an average wealth of only $50,000, according to the Federal Reserve Bank of St. This gap shows how varied wealth can be depending on where you fall on the economic spectrum.
Trending: Don’t miss the real AI boom – Here’s how to use just $10 to invest in high-growth private technology companies.
Mindset and Lifestyle: It’s Not Just About Money
Being rich is not only about the amount, but also about the way you think and live. Wealthy people often focus on long-term goals, invest wisely, and build strong networks. They also tend to value experiences and relationships over just collecting other things. Many prioritize work-life balance and staying healthy, which they consider part of being rich.
The Bottom Line
In 2024, being rich isn’t just about having a certain income or net worth – it’s about having the right mindset and living in the right place. Whether you earn a high salary, accumulate assets, or focus on personal growth, today’s definition of wealth is more diverse than ever. But no matter how you slice it, achieving that “rich” status involves a mix of financial success and a supportive lifestyle.
Read Next:
“ACTIVE INVESTOR’S SECRET WEAPON” Stock Market Game Supercharge with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start your 14 Day Trial Now!
Shares of Benzinga, Inc.
This article is Exactly How Much Money Do You Need to Get Rich? Here’s A Look At The Numbers originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
