According to the Charles Schwab Annual Survey of Modern Wealth, published by Fortune, Americans believe that To be considered a rich person, you must have a minimum fortune of $2.2 million dollars.
The survey also found that people believe that an average net worth of $774,000 is what it takes to be financially comfortable.
The Annual Survey of Modern Wealth surveyed 1,000 Americans ages 21-75 in February 2022in which they were asked a series of questions about their personal finances, including the factors that influence their saving and investment decisions.
According to the information obtained, the average net worth necessary to be considered wealthy and to be financially comfortable increased from last year’s survey.
Well, in 2021 the people consulted indicated that it took $1.9 million to be rich and that $624,000 was enough to have assets to live comfortably.
But with little savings for emergencies or retirement, a figure like $2.2 million or even $774,000 can seem like an impossible goal to reachsays Rob Williams, general manager of financial planning, retirement income and wealth management at Charles Schwab. Although he assures that this does not have to be the case, since each household must calculate its own wealth objective and carry out an individualized savings plan, since what one person or family needs is not the same as for another.
For Williams, the important thing is to have a goal, a deadline and start saving, regardless of the amount saved, because Setting aside even a little money on a consistent basis is especially important when building a retirement account.
“No matter how much money you have, get started and be disciplined,” Williams suggests. “You’ll look back and say, ‘My God, those little steps really added up over time.’ You will find yourself in a position where you can make many more decisions than you could before.“.
The expert recommends that once you start saving become an automatic ritualBecause often, as savings accumulate, they provide an impetus to keep saving more and more, even if you’re just starting out or falling short of your goal.
Williams says that it is essential to consider that the project is long-term, especially in an unstable market like the one we are currently experiencing. Building wealth, for many, requires decades of dedicated investing and while pouring money into assets on a losing streak may seem counterproductive, a falling market is “an opportunity to save and invest more and get more for your money”.
Achieving net worth takes time, but it’s good to be aspiring: “Get started and don’t get overwhelmed trying to hit a certain number in a day or a week”says the financial specialist.
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