When I was a kid, I would often dream about what it would be like to be a millionaire. I remember watching cartoons like Richie Rich and shows such as Lifestyles of the Rich and Famous and imagining what it would be like to have seemingly unlimited amounts of money. However, the older I got and the more attainable a million dollars seemed, the less impressive it felt.
I’m not alone in this perspective. In fact, a recent study by Northwestern Mutual found that only 32% of Americans with more than $1 million in investable assets consider themselves “wealthy.” As of 2025, the average amount respondents said it takes to be considered wealthy is $2.3 million. The same study found that it takes nearly a million dollars in net worth ($839,000) just to feel financially comfortable.
The fact is, wealth is a very relative term. A person with a $2 million net worth living in a neighborhood where the average household income is $1 million can feel poor despite being objectively affluent.
Making the challenge of feeling wealthy even more difficult is the digital world we now find ourselves in. Because of social media, many people no longer only feel the need to keep up with the Joneses next door, but with the perceived lifestyles of acquaintances from around the world.
As a result of these pressures, many high-net-worth individuals spend more than they should on things that do little to improve their long-term happiness. This results in many individuals earning high six-figure salaries still feeling financially squeezed because their spending grows right along with their earnings. I don’t care who you are or how much you make, if your monthly expenses meet or exceed your monthly income, you will not feel wealthy.
Another reason for this significant rise in what it takes to feel wealthy is inflation. Since 2020, we have experienced the highest cost-of-living increases in more than 50 years. This means that while hard assets such as homes and retirement accounts may have risen significantly in value, if it takes more of your income and liquid assets to maintain your lifestyle, you will naturally feel poorer.
Finally, I believe there is one more reason fewer people are identifying as wealthy. This one has nothing to do with numbers at all. Instead, it revolves around ideology. In some circles, there is a stigma attached to wealth itself, with successful people often portrayed as having gained their wealth unfairly or at the expense of others. For that reason, I think many people who are wealthy by virtually every statistical benchmark still hesitate to identify themselves as such.
Perhaps the lesson is that wealth is not really a number at all. If it were, the goalposts would stop moving once we reached them. Instead, wealth is often a matter of perspective. Certainly, having enough money to provide for yourself and your family is important, but I believe true wealth can also be measured in other ways: good health, meaningful relationships, purposeful work, financial independence, strong faith, and the freedom to spend your time as you choose.
In that way, I consider myself quite wealthy, and I suspect many of you are as well. Perhaps the real challenge is not accumulating enough money to feel wealthy, but learning to recognize when we already are.
(Past performance is no guarantee of future results. The advice is general in nature and not intended for specific situations)