How much does it take to feel financially comfortable or rich? Of course, the answer depends on your home, size of your family and lifestyle needs. However, according to 2025 Charles Schwab Wealth SurveyAmericans say they need it now $839,000 Feel financially comfortable – starting from $778,000 in 2024.
What’s even more surprising is that the amount of feelings Americans say rich It has dropped. In 2025, this figure is $2.3 million, down from $2.5 million a year ago.
Congratulations, everyone – we are getting fewer and fewer now! But this counterintuitive result deserves further examination. Like inflation, over time, the amount needed to feel wealth tends to spread upward. Not this year. Let’s explore why Americans may lower their own barriers to wealth.
Why Americans need less money to feel rich
First of all, it’s hard to believe that Americans really feel they need it Fewer Compared with 2024, the money in 2024 is rich. As the cost of living continues to rise (from housing and health care to food and education), this does not add up.
The United States remains a serious consumer-driven economy, with the average household accounting for 95% of total income each year. By comparison, the national savings rate in countries such as Japan and China exceeds 20%, indicating a very different relationship with money and consumption.
So, what could explain this obvious disconnect? Why do Americans report that they need a lower net worth today to feel rich? Let’s explore some possible reasons.
1. Lifestyle inflation has hit the wall
After years of high inflation, rising interest rates, and the affordability crisis across housing, health care and education, many Americans have changed their perspectives. Rather than constantly chasing “more”, redefine enough trends increasingly.
In a world where a median home with a 7% mortgage is unavailable for many, paid shelters, stable jobs and some financial breathing rooms, now it may feel Relatively luxury. Therefore, wealth cares more about security and autonomy than absolute numbers.
2. Remote work and geographical limbs have been flattened
One of the most important changes after the pandemic is the rise of remote and hybrid work. With this flexibility, more and more Americans choose to relocate to low-cost areas, thus furthering their money.
Living in Boise, instead of San Francisco or Asheville instead of Washington, D.C., means a $2.3 million net worth can support the upper and middle lifestyle indefinitely. As more people recalibrate their lives, not just prestige postcodes – starting at a lower level looks more achievable.
3. Wealth is not just money
There is a clear cultural shift to financial independence and intentional life. Thanks to influencers in the firefighting movement and the increased visibility of online alternative lifestyles, the definition of wealth has changed from “having the most things” to “having the most freedom.” The minimalist movement has been booming for years.
If you can work 20 hours a week, spend time with your family, travel occasionally, instead of the stress of unexpected spending, that might feel rich More than people with $10 million but no time, very high fees and jobs they can’t stand.
According to Schwab survey, Americans’ personal definitions of wealth include happiness, physical health, mental health and their relationship quality. Without physical health, money will become the distant second (or even third). That’s why all of us have to prioritize staying active and healthy as we age. True wealth is more than just numbers; it’s about the goodness of life.
4. Stock market recovery helps more people feel richer on paper
After a strong rebound in the stock market in late 2024 and early 2025, many investors (especially those who have eliminated them through previous downturns) have seen their portfolios recover. Retirement accounts, brokerage balances and home values in some markets have rebounded, giving Americans a Paper wealth is improved.
This is true even if their lives have not changed at all Wealth effect Maybe it’s stroking people Feel Wealthy, even if they do not significantly increase their spending or savings.
Perhaps some believe that given the strong winning streak of the S&P 500, lower net worth feels enough because people are optimistic about continued strong future returns. If the market continues to climb, ideas will arise, and today’s wealth will naturally grow, so there is already a higher amount of pressure.
Unfortunately, given the high valuation, most investment firms predict lower returns, rather than higher.
5. Psychological anchoring and investigation fatigue
Let us not ignore human psychology. The Schwab survey is self-reported. People may anchor numbers or adjust answers based on recent emotions.
After years of economic anxiety, political fatigue and mixed messages in the media, Americans may be normalizing lower expectations. This is not necessarily a loser, it may also be a kind of resilience. They didn’t say, “I would feel rich for $2.5 million, let alone $5 million or $10 million,” they said, “I feel rich enough for $2.3 million.” The shift in the framework may be emotionally protective.
Potential wealth redefinition is underway
While the title may indicate that Americans need less money to feel rich, the facts are more subtle. People don’t necessarily get better financially, but their priorities and perceptions may be shifting.
Wealth is increasingly defined in 2025 Flexibility, safety and peace of mind– Not just net worth. In an unpredictable world, the desire to feel “rich enough” rather than endlessly chasing “more” can be a sign of collective emotional maturity.
Whether this redefinition holds true or just a temporary reset remains to be seen. But for now, it seems that fewer Americans seem to need more money to feel like they have “doed”, and it’s a narrative worth watching.
I need to feel rich
Given that I live in San Francisco and plan to move to Honolulu, the most expensive city in the United States, I personally need over $2.3 million to feel rich. In the context, I left my day job in 2012 with a net worth of about $3 million, which was enough to achieve financial freedom at the time.
If we adjusted $3 million in 13 years of annual inflation at 4% per year, the dollar would receive about $5 million today. Do you know? Feel like the right baseline start If you live in a costly coastal city, you will feel wealthy. For those living in low-cost areas such as the South, Sunshine or Midwest, split this number into half $2.5 million It seems reasonable.
But it’s the reality: the vast majority of people who reach these net worth milestones won’t stop working, even if they don’t particularly like their jobs. Instead, they keep grinding – reducing more wealth, more status, more security. Just browse the profiles of countless people worth $5, $10, or even $20 million. Most of them are still busy, usually without a clear end.
Personally, I like to face financial challenges. My current one is generating $380,000 in passive investment income by December 31, 2027, while also making enough investments in growth stocks and private companies.
It provides me with goals and gives me motivation to do something productive in time. Now, that means keep writing and publishing Financial Warrior Until my youngest child went to college – 13 years. It’s a long time, so having extended financial goals helps keep the fire alive.
What do you think?
Do you really believe in the ordinary needs of the United States Fewer Compared to 2024, feel rich in 2025? How much you Need to feel financially comfortable? What size net worth makes you feel truly affluent?
Please share your phone number and let us know the city or region you live in to provide more context. Let’s see how our personal definition of wealth fits or varies across the country.
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