Ever feel like the "wealthy" goalposts just keep moving? You're definitely not alone. According to the Charles Schwab Modern Wealth Survey 2024, the average American now thinks you need a cool $2.5 million to be considered wealthy.
That is a 14% jump from the $2.2 million figure we saw back in 2023. Honestly, in a world where a carton of eggs once cost as much as a small down payment, it’s not exactly shocking that our perception of "rich" is climbing. But there is a weird paradox in the data this year that most people are missing. While the price tag for "wealth" went up, the amount of money people say they need to feel "financially comfortable" actually dropped.
The $2.5 Million Question: Who Decides What’s Rich?
Basically, the survey—which polled 1,000 Americans between the ages of 21 and 75—shows that "wealth" is a moving target that depends heavily on how many candles were on your last birthday cake.
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Boomers are the most demanding here. They told Schwab it takes $2.8 million to be wealthy. Meanwhile, Gen Z is much more chill about it, putting the number at $1.2 million.
It’s a massive gap. But if you look at "financial comfort," the vibe changes. Last year, people thought they needed $1 million just to breathe easy. In 2024, that number fell to **$778,000**. It’s like we’ve collectively decided that while being "rich" is getting harder, being "okay" might be a bit more attainable than we feared during the height of the inflation freak-out.
Where you live changes everything
If you’re reading this from a studio apartment in San Francisco, I have bad news. The "wealth" threshold there isn't $2.5 million. It’s **$4.4 million**.
Southern California isn’t much cheaper at $3.4 million. On the flip side, if you're in Dallas or Houston, you can technically feel wealthy with "only" about **$2.2 million or $2.3 million**. Location is the ultimate wealth tax.
The Massive Disconnect Between Optimism and Reality
Here is the thing that really stands out in the Charles Schwab Modern Wealth Survey 2024: we are weirdly optimistic.
About 64% of people think they’re actually in a better spot to hit their goals than their parents were. Why? Mostly because of technology. We have apps for everything now. You can buy fractional shares of Apple while waiting for your latte. Gen Z is starting to invest at age 19 on average, while Boomers didn't usually get the ball rolling until they were 35.
But—and this is a big "but"—only 18% of Americans say they are actually on top of their finances right now.
"The jump from $2.2 million to $2.5 million demonstrates both sides—the rising cost of living and Americans' emotion-driven views on what it takes to be wealthy." — Rob Williams, Managing Director of Financial Planning at Charles Schwab.
We feel like we have the tools, but we aren't necessarily using them to build the house.
What Actually Makes Someone "Wealthy"?
Interestingly, when Schwab asked people to define wealth without using a dollar sign, the answers weren't about Ferraris.
- Happiness (45%)
- Money (44%)
- Physical Health (37%)
- Mental Health (32%)
Kinda refreshing, right? Most people—83% of them—say they already feel wealthy because they have good relationships or enough free time. It turns out that while we chase that $2.5 million, we actually value the stuff that doesn't show up on a bank statement.
The Power of the Paper
There is one specific group of people in the survey who aren't sweating the numbers as much: the planners. Only 36% of Americans have a written financial plan.
But of those who do? A staggering 96% feel confident they’ll reach their goals. It’s the difference between wandering into the woods with a GPS versus just hoping you find the campsite before dark.
Navigating the 2024 Landscape: Actionable Steps
If you're looking at that $2.5 million number and feeling a bit nauseous, don't worry. The Charles Schwab Modern Wealth Survey 2024 isn't a rulebook; it's a mirror of public sentiment. Here is how to actually move the needle for your own net worth:
- Stop Guessing Your Number: Most people pick a "wealth" number out of thin air. Sit down and calculate your actual cost of living. You might find your "comfort" number is way lower than the national average.
- Automate the "Young" Advantage: Since Gen Z is winning the "start early" game, copy them. Even $50 a month into a low-cost index fund starting in your 20s is worth more than $500 a month starting in your 40s.
- Get it in Writing: You don't need a fancy private banker. Just a written document that says: "This is what I earn, this is what I spend, and this is where the leftover goes." People with plans are statistically less stressed.
- Re-evaluate Your City: If your goal is purely capital accumulation, the $2.2 million difference between living in Houston vs. San Francisco is a factor you can't ignore.
The reality is that "modern wealth" in 2024 is less about hitting a specific millions-of-dollars jackpot and more about having the agency to live how you want. Whether that costs $778,000 or $4.4 million depends entirely on the life you're trying to build.