I just came across an article with the headline: Is $2 million dollars enough to feel wealthy? Here are my thoughts, backed up by data and research. Enjoy. Add me on Instagram: GPStephan
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According to The Modern Wealth Survey conducted by Charles Schwab, the average number that someone felt they’d need to consider themselves “wealthy” is $2,270,000.
Now first of all, lets look at this objectively…$2,300,000 dollars IS a lot of money. Considering that the median net worth of the average US household is just under $100,000…at $2.3 million, you’re doing SIGNIFICANTLY better compared to most people.
However…when it comes to feeling “rich,” here are a few things that some people don’t consider:
The first is cost of living.
For example, in New York…$2.3 million dollars is REALLY equivalent to about $1,960,000 in terms of what you get for your money.
Whereas in Mississippi, $2.3 million dollars is REALLY equivalent to $2,610,000 in terms of what you get.
https://www.marketwatch.com/story/how-far-does-1-go-in-your-state-2016-08-10
This is also backed up by another study by Charles Schwab which found that, in Charolette North Carolina, $1.8 million was the amount needed to feel wealthy. But if you move to San Fransisco, and that amount jumps to $4.2 million.
https://www.supermoney.com/2016/05/much-money-take-considered-rich-us/
NOW SECONDLY…when looking at a sizable sum like $2.3 million dollars, it’s a lot less important to focus on the total amount you have, but instead how much that money will realistically last you for the rest of your lifetime.
Like I mentioned earlier, $2.3 million invested should be able to safely generate an income between $55,000 and $90,000 per year conservatively, depending on where it’s invested, for the rest of your lifetime without you ever having to worry about running out. However, feeling “rich” earning between $55,000 to $90,000 annually doesn’t quite cut it according to surveys, apparently…
This is because according to a study by YouGov, MOST people surveyed felt that someone earning $90,000 a year was “neither rich, nor poor.” And earning $100,000 or more per year became the crossing point where 56% of people surveyed felt like that would make them “Rich.”
https://www.cnbc.com/2019/01/23/how-much-money-americans-think-you-need-to-make-to-be-rich.html
And what’s even more surprising is that throughout ALL income brackets under $150,000…less than 10% of them felt rich. This was the same result when they surveyed people earning $40,000 per year as it was for people earning over $90,000 per year…despite how much they make, 90% don’t feel like they make enough to consider themselves rich.
The reason behind this, is that we ALWAYS compare our income with those who are doing better than us, and how much money we make quickly just becomes our new “normal.” A poll was conducted several years ago that highlights this perfectly…
Almost HALF of the people earning $30,000-$49,000 per year felt that making $100,000-$500,000 per year would make them rich. But if you asked people earning over $100,000 per year what income THEY would feel rich at, nearly HALF of those people felt like they’d need to make more than $500,000 per year to consider themselves “rich.”
https://www.brookings.edu/opinions/wealth-inequality-and-the-me-im-not-rich-problem/
Basically, YouGov found that the more money you make - the higher the bar is set, and the more you need to make to think of yourself as “Rich.” https://today.yougov.com/topics/economy/articles-reports/2019/01/13/how-much-money-do-you-need-earn-year-be-rich
This isn’t just my opinion, either…more studies have shown that even once you reach MILLIONAIRE status, that the majority of them now believe it’s $7 MILLION to feel wealthy:
https://outline.com/VbRtSG
At the end of the day, feeling “rich” is a state of mind NOT characterized by numbers, but instead by your own gratitude for appreciating what you have. This very much goes in line with the saying: wherever you go, there you are. That’s why I believe having $2.3 million is enough to BE rich…but not enough to FEEL it once you’re there. Because at the end of the day, feeling like you’re wealthy is the journey…it’s NOT the destination.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Merch: http://www.GrahamStephanStore.com/
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
According to The Modern Wealth Survey conducted by Charles Schwab, the average number that someone felt they’d need to consider themselves “wealthy” is $2,270,000.
Now first of all, lets look at this objectively…$2,300,000 dollars IS a lot of money. Considering that the median net worth of the average US household is just under $100,000…at $2.3 million, you’re doing SIGNIFICANTLY better compared to most people.
However…when it comes to feeling “rich,” here are a few things that some people don’t consider:
The first is cost of living.
For example, in New York…$2.3 million dollars is REALLY equivalent to about $1,960,000 in terms of what you get for your money.
Whereas in Mississippi, $2.3 million dollars is REALLY equivalent to $2,610,000 in terms of what you get.
https://www.marketwatch.com/story/how-far-does-1-go-in-your-state-2016-08-10
This is also backed up by another study by Charles Schwab which found that, in Charolette North Carolina, $1.8 million was the amount needed to feel wealthy. But if you move to San Fransisco, and that amount jumps to $4.2 million.
https://www.supermoney.com/2016/05/much-money-take-considered-rich-us/
NOW SECONDLY…when looking at a sizable sum like $2.3 million dollars, it’s a lot less important to focus on the total amount you have, but instead how much that money will realistically last you for the rest of your lifetime.
Like I mentioned earlier, $2.3 million invested should be able to safely generate an income between $55,000 and $90,000 per year conservatively, depending on where it’s invested, for the rest of your lifetime without you ever having to worry about running out. However, feeling “rich” earning between $55,000 to $90,000 annually doesn’t quite cut it according to surveys, apparently…
This is because according to a study by YouGov, MOST people surveyed felt that someone earning $90,000 a year was “neither rich, nor poor.” And earning $100,000 or more per year became the crossing point where 56% of people surveyed felt like that would make them “Rich.”
https://www.cnbc.com/2019/01/23/how-much-money-americans-think-you-need-to-make-to-be-rich.html
And what’s even more surprising is that throughout ALL income brackets under $150,000…less than 10% of them felt rich. This was the same result when they surveyed people earning $40,000 per year as it was for people earning over $90,000 per year…despite how much they make, 90% don’t feel like they make enough to consider themselves rich.
The reason behind this, is that we ALWAYS compare our income with those who are doing better than us, and how much money we make quickly just becomes our new “normal.” A poll was conducted several years ago that highlights this perfectly…
Almost HALF of the people earning $30,000-$49,000 per year felt that making $100,000-$500,000 per year would make them rich. But if you asked people earning over $100,000 per year what income THEY would feel rich at, nearly HALF of those people felt like they’d need to make more than $500,000 per year to consider themselves “rich.”
https://www.brookings.edu/opinions/wealth-inequality-and-the-me-im-not-rich-problem/
Basically, YouGov found that the more money you make - the higher the bar is set, and the more you need to make to think of yourself as “Rich.” https://today.yougov.com/topics/economy/articles-reports/2019/01/13/how-much-money-do-you-need-earn-year-be-rich
This isn’t just my opinion, either…more studies have shown that even once you reach MILLIONAIRE status, that the majority of them now believe it’s $7 MILLION to feel wealthy:
https://outline.com/VbRtSG
At the end of the day, feeling “rich” is a state of mind NOT characterized by numbers, but instead by your own gratitude for appreciating what you have. This very much goes in line with the saying: wherever you go, there you are. That’s why I believe having $2.3 million is enough to BE rich…but not enough to FEEL it once you’re there. Because at the end of the day, feeling like you’re wealthy is the journey…it’s NOT the destination.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
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This video was amazingly awesome. Thanks Graham for making me feel more grateful today for where I am.
Just stop spending more than you earn and when you gain more money stop trying to attain more "stuff" get a comfy house, buy the things you need and just do not adjust your way of life when you earn more. It's such a trap, I got 30k raise when getting a promotion. I thought long and hard about what I wanted, in the end I didn't care for more, I just care for more stability. More money means more stability not more items to buy. I am buying a house this year, but I will be paying less in my mortgage than in rent. So it is an investment for me, especially since I spend most of my time at home, my husband and I think it's time.
When he first named Ramsey
To me when I reached x number of $$$ so I could retire early and enjoy life……I only felt I had reached a nice comfort level. Rich(in financial terms) is something I would have a hard time ever saying i achieved as it almost sounds a little arrogant. And that 'rich' is just so hard to define.
I don't care to feel "Wealthy or Rich" I just want to have a comfortable retirement!
The comparison effect is very true. I know for fact that I can't spend all the money I earn. But I do want to earn competitive salary in my field to feel good.
I think this is your best video ever Graham❣️ It is so true.
In California it isn't. But many places it is enough to retire.
“Enough” is a mindset that can be achieved by anyone and happiness is just a mindset
4,200,000 in SF lol ok these statisticians are just playing around with numbers now
This is one of your best videos.
Graham, I would give it all up for just a little bit more.
First of all don't believe anything that comes out of CNN, next don't live in NY or CA!
i didn't watch the whole thing, u need a billion to feel wealthy everyday
What a narrow definition of wealth. $3-5 MILLION means you have WAY more than your share. To me – rich is having lived a good life;, and leaving something for my family. Rich is not owing anybody a dime; home is paid off, cars are paid for, and having enough money to live off of the interest from investments.
Great Video .Enjoy the wisdom you have to share on your channel
lifestyle creep. People aren't actually in touch with reality, just their own bubble. Of course a 150k salary is too poor…they are can barely afford their yacht payments, paycheck to paycheck. It's basically just people have no clue what the economics of life is.
Graham Stephan I went through a fast food drive thru and at the exit what appeared to be homeless man and he asked me for money or anything.I had 23 cents change left to my hand after my purchase and I said to him here, its not much man.He looked at the change in his hand and looked up at me straight in the eyes and said, no, its alot and he said thank you.
thank you for this
No 2.3 million is NOT enough to make you wealthy. Comfortable yes.
2.3 million can do better than 90k per year. That’s less than 4%. At ten percent, which is not impossible to do, its 230000
Net worth needs to be adjusted if you own real estate and if you sell your rentals if you have to pay capital gains. If you have 2.3 mil cash to start out with then you could easily build that much higher buying rentals because of appreciation. There are some rentals that should only be exchanged not sold because of capital gains tax. It’s not what you make it’s what you keep. Depreciation can give you a large tax advantage also to pay less to the government. Therefore you make more you keep more.
"You can basically earn what the average American makes in a year" shows median HOUSEHOLD income
With that much you can easily retire and live off dividends.
So probably Jeff bezos and Warren buffett feeling poor as well.
I think it depends on who you ask this question. Everyone has different financial motivations. Someone may be happy & comfortable having $1,000,000 for their desired lifestyle. Meanwhile another person may want a to have $20,000,000 for their desired lifestyle. I think it just depends.
I think you did very good. And yeah, it is true. Most people feel like that. For me, long as I can pay all my bills , that all I need. It be good to have some for my son college.
2.3 million is a lot of money if you move to Asia
Watching this when Graham has 2.3 million subscribers
$5 million
You could logically live off 200 thousand dollars. My English teacher explained what he would do with the money, to make it last forever, but I forgot exactly what he said.