According to a recent MoneyTransfers data presentation, the average networth for a wealthy American citizen is now $2.2 million. That’s a 16% increase from the $1.9 million it would have taken to attain similar status in 2021.
To put these figures in perspective, America’s median networth per household is $121,700. These findings, therefore, speak volumes of the income inequalities existing in American society. For many, the dream of joining the ranks of the wealthy seems increasingly out of reach.
MoneyTransfers CEO Jonathan Merry has weighed in on the data. He holds, “The cost of living is increasing at a faster rate than wages are growing. This year has seen inflation rates spiral to the highest they’ve been since 1981 impacting savings and investments. Consequently, it’s becoming harder and harder for those in the lower classes to move up the financial ladder.”
Many Americans Equate Money to Freedom
Drawing from a recent survey by Charles Schwab, MoneyTransfers concluded that most Americans equate having money with freedom. 42% of the 1,000 respondents said that money meant freedom to them. This suggests that money many see money as a critical factor in achieving personal liberty.
23% of respondents said that having money gives them the flexibility they require in life. 18% said it provides opportunities they wouldn’t have otherwise, 10% see it as a way to achieve their goals, and 7% believe it allows them to be more generous.
Personal Values are Critical to Investment Decisions
When investing, personal values trump other considerations, such as financial gain. The Charles Schwab study found that 73% of Americans make investment choices based on personal values.
Gen Zers were the most likely to do this among different age groups, with 82% saying that personal values were a guiding factor in their investment decisions. Millennials follow at 75%, Gen Xers at 73%, and Baby boomers at 68%. The full story and statistics can be found here: Average Networth it Takes to be Wealthy Stands at $2.2M, a 16% Jump From 2021