There's a difference between looking rich and actually being wealthy. One is loud. The other doesn't need to explain anything.
Rich means you earn a lot. You might drive a luxury SUV, own a $10,000 couch, and take three vacations a year — all while living paycheck to paycheck. Wealthy means you own assets that generate income whether you're working or not. Wealth buys freedom. Rich buys bills.
What It Takes To Be Considered Wealthy
According to the 2025 Charles Schwab Modern Wealth Survey, Americans now say you need $2.3 million in net worth to feel wealthy. To feel just financially comfortable, the average response is $839,000 — up from $778,000 the year before.
Don't Miss:
- The ‘ChatGPT of Marketing' Just Opened a $0.85/Share Round — 10,000+ Investors Are Already In
- Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
The survey, conducted among more than 2,000 U.S. adults, also revealed generational breakdowns:
- Gen Z: $329,000 for comfort, $1.7 million for wealth
- Millennials: $847,000 for comfort, $2.1 million for wealth
- Gen X: $783,000 for comfort, $2.1 million for wealth
- Boomers: $943,000 for comfort, $2.8 million for wealth
But these are perceptions, not actual thresholds. What people feel is enough often doesn't reflect what they actually have — or what they truly need to build lasting wealth.
What the Data Actually Shows
The Federal Reserve's Survey of Consumer Finances puts the median net worth of U.S. households at $192,700. That's the 50th percentile — half the country is below it.
To reach the top tiers:
- 75th percentile: around $659,000
- 90th percentile: $1.87 million
- 95th percentile: over $3 million
- Top 1%: typically starts around $11–16 million
Based on recent asset growth, especially in real estate and the stock market, the current top 10% threshold is estimated to have climbed closer to $2.5 million–$3 million. That lines up almost exactly with where the Schwab survey says people start feeling wealthy.
Trending: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
Rich Is Income. Wealthy Is Ownership
Being rich is about how much you earn. Being wealthy is about how long you could live exactly as you do without earning another dollar.
Someone making $500,000 a year with no savings, no equity, and expensive taste might feel rich — but if they lose the job, they're toast. On the other hand, someone with $2.3 million in income-producing assets doesn't need the job at all.
The wealthy are not working for money. Their assets are doing the work. That includes real estate, stocks, retirement funds, private businesses, and anything else that generates recurring cash or appreciates over time.
How the Wealthy Actually Build Net Worth
Most households that reach the upper echelons didn't do it from salary alone. They built — and held — equity.
Here's what sets them apart:
- Homeownership: U.S. households hold over $35 trillion in home equity. The average homeowner has 38 times more net worth than the average renter. Owning real estate — even just a share — is a major wealth driver.
- Stock market exposure: The top 10% own over 85% of the total U.S. stock market value. Passive investing, index funds, and dividend portfolios build wealth that compounds — quietly.
- Multiple income streams: Wealthy households rarely rely on one paycheck. They earn from real estate, businesses, dividends, royalties, or consulting work — all layered into a lifestyle that doesn't collapse when one source slows down.
See Also: Deloitte's #1 Fastest-Growing Software Company Lets Users Earn Money Just by Scrolling — Accredited Investors Can Still Get In at $0.50/Share.
Tips to Build Real Wealth — Not Just Look Rich
The good news? You don't need a mansion or a million-dollar portfolio to start moving toward financial independence. You just need to stop relying on income alone.
Start investing consistently. Whether it's through retirement accounts, brokerage accounts, or dividend ETFs, the goal is to build assets that grow on their own. Compound interest isn't flashy — but it wins.
Own a piece of real estate. Can't afford a whole rental? You don't need to. Platforms like Arrived allow you to invest in fractional shares of rental homes for as little as $100. You earn a slice of the rental income and appreciation — without having to fix a single leaky faucet.
Eliminate high-interest debt. No investment grows faster than a 24% credit card bill can wipe it out. Cutting debt is the fastest, most guaranteed "return" you'll ever see.
Get serious about planning. Wealthy people track their progress. They know their net worth. They don't just hope they'll be okay someday — they run the numbers and build systems that make it real.
Rich people chase paychecks. Wealthy people build systems that run without them. If you're serious about becoming the latter, stop asking how much you earn — and start asking what you own that keeps working while you don't.
Read Next: 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
