How do people define the “wealthy?”
For that matter, how do people define “rich” (monetarily speaking; not in the It’s a Wonderful Life sense of having friends, family, health or job satisfaction). The Mirriam-Webster dictionary defines the word as “having abundant possessions and especially material wealth.” What would you call “abundant?” Wall Street Journal reporter Robert Frank, in his book Richistan, wrote that “people’s definition of rich is subjective and is usually twice their current net worth.”
We asked more than 1,200 investors what they considered to be the minimum annual household income it would take for them to consider themselves rich. The highest percentage (38 percent) said at least $450,000. The second-highest percentage (19 percent) said $250,000.
When asked which best describes the minimum wealth level to be considered rich, the highest percentage (27 percent) of our surveyed investors said the proverbial “1 million dollars.” Eighteen percent said $2 million, while 16 percent said $5 million.
What’s YOUR definition of “Rich?”