What Many People Get Wrong About Feeling Rich
Written by
Crystal Mayer
Edited by
Amen Oyiboke
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According to CNBC Make It, many people believe that if they achieve a certain dollar amount, they will feel rich. However, The reality is that reaching that goal may not make you feel wealthy. As noted in the article, wealth is a “subjective experience” and not necessarily based on a specific amount of money.
Read More: 6 Things the Middle Class Should Sell To Build Their Savings
Check Out: 6 Subtly Genius Moves All Wealthy People Make With Their Money
Read on to find out what many people get wrong about feeling rich and how you can feel more satisfied no matter how much money you have.
What Most People Get Wrong About Wealth
As explained to CNBC Make It, the leading misconception people have about wealth is that they need a certain amount of money to feel rich. Unfortunately, it is not that easy. Even once people achieve the amount that they think they need to be rich, they often still do not feel wealthy. Being rich is not defined by having a specific amount of money in the bank. It is a feeling that can be shockingly different from person to person.
Wealth Is Not Easily Defined
Another problem, or at least a common misconception, is that wealth can easily be defined. There is no global definition of what it means to be rich. In U.S. News & World Reports, “Are You Rich? How the Wealthy Are Defined,” wealth may be defined not by the amount of money you have but by the conditions in which you live.
Therefore, you could be considered wealthy even if you are in a lower income bracket. Things like living debt-free, having a healthy savings, and being able to easily pay your bills could be considered wealthy to some, while for others, it is about the ability to afford luxuries.
Do Millionaires Feel Wealthy?
Not too long ago, a million dollars felt unattainable for the average American. Achieving millionaire status was enviable. Today, however, the number of millionaires in the United States alone is staggering. There are nearly 22 million millionaires with the number expected to rise over the next five years, according to Statista.
While some people may still consider millionaires wealthy, most actual millionaires disagree. According to Northwestern Mutual’s Planning & Progress Study 2024, only 32% of millionaires in America consider themselves “wealthy,” and almost half (48%) say that their “financial plans need improvement.”
However, millionaires, defined as those with at least $1 million in investable assets, are more likely to feel prepared for retirement and have clarity about how much they spend and save.
Why Would High-Income Earners Not Feel Wealthy?
It can be surprising to hear that someone who is considered a high-income earner does not identify as wealthy but there may be several reasons for the categorization or lack thereof. Foremost, if your definition of wealth is based on another person’s lifestyle or income level, it may be a moving target. In order to achieve feeling rich under this scenario, you may constantly be comparing yourself to others causing you to spend more.
Another reason a high-income earner may not feel wealthy is if they have large amounts of debt. Even millionaires can find themselves living paycheck to paycheck due to an exorbitant lifestyle. Living within your means is critical for financial success, no matter how much money you have in the bank.
How Can You Feel More Satisfied?
It can be challenging to feel satisfied financially, but some things can help. First, celebrate success. Financial goals or milestones should be set, clearly outlined, and celebrated once achieved. Failing to celebrate your success can make it difficult to feel rich even if you have a lot of money in the bank.
Next, you should stop comparing yourself to others. Defining wealth with someone else’s definition may leave you frustrated. Then, you will want to rethink whether or not wealth is defined by a specific number.
Wealth can be subjective and may change over time. Finally, working with a financial advisor can help ensure that your money is being put to its best use, you are setting and exceeding your goals, and you are fully funded for retirement.
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