Do You Really Need $2.4 Million to Be Wealthy?
How much money would you have to have tucked away before you considered yourself wealthy? According to the most recent Charles Schwab Modern Wealth Index survey, Americans believe that they need at least $2.4 million to be considered wealthy and at least $1.1 million to be considered "financially comfortable." That's a far higher net worth than most Americans enjoy.
When survey respondents were asked to say what wealth meant to them, the most common answer was that wealth meant "having lots of money." However, that definition doesn't take into account how much money you really need. If you spend $5,000 a month on average and you bring in $10,000 a month in income, you've got a pile of extra money coming in that you can use for whatever purpose you desire. That would probably make you feel quite happy about your financial situation. On the other hand, someone making $10,000 a month who had expenses of $15,000 a month would likely be pretty miserable about his financial situation. So wealth might be better defined as having more than enough money to pay for everything you want and need.
Image source: Getty images.
Source: Fool.com
