How Much Wealth is Enough? Shifting American Attitudes Towards Financial Comfort
How much money does it take for you to feel financially secure or even wealthy? The answer is a complex mix of factors like where you reside, your household size, and lifestyle choices. However, results from the 2025 Charles Schwab Wealth Survey indicate that Americans believe they require a net worth of $839,000 to achieve financial comfort. This figure shows an increase from $778,000 in the previous year.
A Shift in the Perception of Wealth
Intriguingly, the amount required to feel “wealthy” has decreased. As per the 2025 survey, the figure is $2.3 million, a decline from $2.5 million the year before. So, we’re feeling wealthier with less! This unexpected outcome calls for a closer look. Although like inflation, the needed amount to feel wealthy usually rises over time, this isn’t the case for Americans now. Let’s delve into why this may be happening.
Why Do Americans Feel Wealthy with Less Money?
At first glance, it’s hard to believe that Americans feel they require less money to be wealthy in 2025 compared to 2024. With the cost of living steadily increasing – from housing and healthcare to food and education – it just doesn’t seem to add up. The U.S. is largely a consumer-driven economy, with the average household spending approximately 95% of its gross income annually. This contrasts sharply with countries like Japan and China, where national savings rates exceed 20%, indicating a differing monetary and consumption mindset.
So, what could explain this apparent disconnect? Why would Americans claim they need a lower net worth to feel wealthy today? Let’s consider some potential reasons.
1. Lifestyle Inflation Has Hit a Wall
After years of high inflation, soaring interest rates, and affordability crises in housing, healthcare, and education, many Americans have shifted their perspective. There’s a growing trend towards redefining what “enough” really means. Wealth now seems to be more about security and autonomy than about absolute numbers.
2. Remote Work and Geo-Arbitrage are Redefining Wealth
The rise of remote and hybrid work has allowed more Americans to move to lower-cost areas, stretching their dollars further. This lifestyle shift is altering the perception of wealth, making it appear more attainable at lower levels.
3. Wealth is More Than Just Money
There’s a noticeable cultural shift towards financial independence and intentional living. Thanks to influencers in the FIRE (Financial Independence, Retire Early) movement and the increased visibility of alternative lifestyles online, the definition of wealth has evolved from “owning the most stuff” to “having the most freedom”.
4. Stock Market Recovery Boosted Paper Wealth
After a strong rebound in equity markets, many investors have seen their portfolios recover, giving Americans a boost in paper wealth. Even if nothing fundamentally changed in their lives, this wealth effect could be nudging people to feel wealthier.
5. Psychological Anchoring and Survey Fatigue
Human psychology plays a role too. The Schwab survey is self-reported, so people may anchor to round numbers or adjust responses based on recent sentiment. This shift in framing may be emotionally protective.
Is Wealth Being Redefined?
Although it might seem like Americans need less money to feel wealthy, the truth is more nuanced. It’s not necessarily that people are better off financially, but their priorities and perceptions are shifting. Whether this is a permanent change or a temporary reset remains to be seen, but for now, fewer Americans seem to need more money to feel like they’ve “made it”.
How Much Do I Need to Feel Wealthy?
For me, living in San Francisco and planning to relocate to Honolulu – two of the most expensive cities in America – I require far more than $2.3 million to feel wealthy. I left my job in 2012 with a net worth of around $3 million, which felt sufficient for financial freedom at the time. Adjusting that for 13 years of 4% annual inflation, we get about $5 million in today’s dollars. However, the reality is that most people who reach these net worth milestones don’t stop working. Instead, they keep grinding—chasing more wealth, more status, more security.
What About You?
Do you believe you need less money to feel wealthy in 2025 compared to 2024? How much money do you need to feel financially comfortable, and at what net worth do you feel truly wealthy?
