How much money do you have to earn to be rich?

How much money do you have to earn to be rich? Although the pandemic has significantly affected the income of many Italians, and not only, the aspiration to become part of the circle of the Scrooge is a dream that unites almost everyone.

According to the Americans, however, having a million dollars is not enough to be considered a rich person. Anyone who wants to feel like a real Scrooge de ‘Scrooge must have a net worth that reaches almost 2 million dollars, 1.9 to be exact, the equivalent of 1.55 million euros. This is what emerges from Charles Schwab’s Modern Wealth Survey 2021. A survey of 1,000 Americans between the ages of 24 and 74.

How much money do you have to earn to be rich?

This year the figure indicated by the sample is slightly lower than last year, in fact, in 2020 the Americans had stated that they could consider themselves rich only with a net worth equal to or greater than 2.6 million dollars. Expectations about wealth also vary widely across generations, with young people settling for lower figures than the older population. Here are the differences between the various generations:

  • Millennials (ages 24 to 39): $ 1.4 million
  • Gen X (40 to 55 years old): $ 1.9 million
  • Baby boomers (56 to 74): $ 2.5 million

Of course, Americans’ net worth is far from what they would like to be considered rich, so much so that even before the pandemic, U.S. households had an average net worth of $ 748,800, according to the Federal Reserve’s 2019 Survey of Consumer Finances. The median net worth of all US households was much lower, just $ 121,700 in 2019. Furthermore, it is interesting to note that, in order to be able to enter the top 1% of the richest people, it is essential to have a higher net worth. to 11 million dollars.

The effects of the pandemic on heritage expectations

The pandemic played a role in the decline in equity expectations. 53% of 1,000 surveyed by Schwab have indeed reported having suffered economic repercussions during the health emergency and about 1 in 5 people he said to have been laid off or put on leave, while 26% said they had suffered a reduction in salary or hours.

In fact, a decline in income necessarily also impacts people’s net worth, made up of all assets, including money on the current, financial investments, real estate properties, and owned vehicles. However, not all finances were affected by the pandemic, in fact, thanks to stimulus payments and spending cuts, some Americans actually increased their savings levels during the pandemic.

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