What It Takes to Feel Wealthy Today Is Less Than Before

How much money do you need to feel financially comfortable or wealthy? The answer depends on where you live, your household size, and your lifestyle desires, of course. However, according to the 2025 Charles Schwab Wealth Survey, Americans say it now takes a net worth of $839,000 to feel financially comfortable—up from $778,000 in 2024.

More surprisingly, the amount Americans say is needed to feel wealthy has declined. In 2025, that number is $2.3 million, down from $2.5 million just a year ago.

Congratulations, everyone—we now feel wealthier with less! But this counterintuitive result deserves further examination. Like inflation, the number needed to feel wealthy tends to creep upward over time. Let’s explore why Americans may be lowering their wealth threshold.

Why Americans Need Less Money To Feel Wealthy

First of all, it’s hard to believe that Americans genuinely feel they need less money to be wealthy in 2025 compared to 2024. With the cost of living continuing to rise—from housing and healthcare to food and education—it just doesn’t add up.

The U.S. remains a heavily consumer-driven economy, where the average household spends around 95% of its gross income annually. By contrast, countries like Japan and China maintain national savings rates of over 20%, suggesting a very different relationship with money and consumption.

So, what might explain this apparent disconnect? Why would Americans report needing a lower net worth to feel wealthy today? Let’s explore a few possible reasons.

1. Lifestyle Inflation Has Hit a Wall

After years of high inflation, rising interest rates, and affordability crises across housing, healthcare, and education, many Americans have shifted their perspective. Instead of constantly chasing “more,” there's a growing trend toward redefining what enough actually is.

In a world where owning a median-priced home with a 7% mortgage feels unattainable for many, having paid-off shelter, a steady job, and some financial breathing room might now feel relatively luxurious. Wealth, then, becomes more about security and autonomy than absolute numbers.

2. Remote Work and Geo-Arbitrage Have Flattened Aspirations

One of the most significant post-pandemic shifts has been the rise of remote and hybrid work. With this flexibility, more Americans have chosen to relocate to lower-cost areas, making their money stretch much further.

Living in Boise instead of San Francisco, or Asheville instead of Washington, D.C., means that a net worth of $2.3 million could support an upper-middle-class lifestyle indefinitely. As more people recalibrate their lives around value—not just prestige zip codes—wealth begins to look more attainable at lower levels.

3. The Definition of Wealth Is More Than Just Money

There’s a noticeable cultural shift toward financial independence and intentional living. Thanks to influencers in the FIRE movement and the increased visibility of alternative lifestyles online, the definition of wealth has moved away from “owning the most stuff” to “having the most freedom.” Minimalism has gained steam over the years.

If you can work 20 hours a week, spend time with your family, travel occasionally, and not stress about unexpected expenses, that may feel wealthier than someone with $10 million but no time, high expenses, and a job they can’t stand.

According to the Schwab survey, Americans’ personal definition of wealth includes happiness, physical health, mental well-being, and the quality of their relationships. Without good health, money becomes a distant second—or even third—in importance. That’s why it’s so important for all of us to prioritize staying active and fit as we age. True wealth isn’t just about numbers; it’s about living well.

4. Stock Market Recovery Helped More People Feel Richer on Paper

Following a strong rebound in equity markets in late 2024 and early 2025, many investors—especially those who stuck it out through prior downturns—have seen their portfolios recover. Retirement accounts, brokerage balances, and home values in select markets have rebounded, giving Americans a paper wealth boost.

Even if nothing fundamentally changed in their lives, this wealth effect could be nudging people to feel wealthier, even if they’re not significantly increasing their spending or savings.

Perhaps there's also a belief that, given the S&P 500’s strong winning streak, a lower net worth feels sufficient because people are optimistic about continued strong future returns. If the market keeps climbing, the thinking goes, today’s wealth will naturally grow, so there’s less pressure to already be at a higher number.

Unfortunately, given high valuations, most investment houses are forecasting lower future returns, not higher.

5. Psychological Anchoring and Survey Fatigue

Let’s not overlook human psychology. The Schwab survey is self-reported. People may anchor to round numbers or adjust responses based on recent sentiment.

After years of economic anxiety, political fatigue, and mixed messages in the media, Americans may be normalizing lower expectations. This isn't necessarily defeatist, it could also be a form of resilience. Instead of saying, “I’ll feel wealthy at $2.5 million, let alone $5 million or $10 million,” they now say, “I feel wealthy enough with $2.3 million.” That shift in framing may be emotionally protective.

A Potential Redefinition of Wealth Is Underway

While the headline may suggest that Americans require less money to feel wealthy, the truth is more nuanced. It’s not necessarily that people are better off financially, it’s that their priorities and perceptions may be shifting.

Wealth in 2025 is increasingly defined by flexibility, security, and peace of mind—not just by net worth. In an unpredictable world, the desire to feel “wealthy enough” rather than endlessly chase “more” may be a sign of collective emotional maturity.

Whether this redefinition holds or is just a temporary reset remains to be seen. But for now, fewer Americans seem to need more money to feel like they’ve “made it,” and that’s a narrative worth watching.

My Thoughts on How Much Is Necessary to Feel Wealthy

Given that I live in San Francisco and plan to relocate to Honolulu—two of the most expensive cities in America—I personally need far more than $2.3 million to feel wealthy. For context, I left my day job in 2012 with a net worth of around $3 million, which at the time felt sufficient to achieve financial freedom.

If we adjust that $3 million for 13 years of 4% annual inflation, we get about $5 million in today’s dollars. And you know what? That feels like the right baseline to start feeling wealthy if you live in a high-cost coastal city. For those living in lower-cost areas—such as the South, Sunbelt, or Midwest—cutting that number in half to $2.5 million seems reasonable.

But here's the reality: the vast majority of people who reach these net worth milestones don’t stop working, even if they don’t particularly enjoy their jobs. Instead, they keep grinding—chasing more wealth, more status, more security. Just browse the countless profiles of people worth $5, $10, or even $20 million. Most of them are still hustling, often with no clear endpoint.

Personally, I enjoy having a financial challenge. My current one is to generate $380,000 in passive investment income by December 31, 2027, while also having enough investments in growth stocks and private companies.

It gives me purpose and keeps me motivated to do something productive with my time. Right now, that means continuing to write books and publish on Financial Samurai until my youngest heads off to college—in 13 years. That’s a long time to keep at it, so having stretch financial goals helps keep the fire alive.

Ultimately, I feel wealthy when my family and I are healthy and happy. There’s no greater joy than seeing the people you love filled with joy—and no deeper sadness than seeing them in pain. Once your basic financial needs are met, it’s everything else that determines true wealth.

What Do You Think?

Do you really believe the average American needs less money to feel wealthy in 2025 compared to 2024? How much money do you require to feel financially comfortable? And what size net worth makes you feel truly wealthy?

Please share your numbers—and let us know what city or region you live in to help provide more context. Let’s see how our personal definitions of wealth align or differ across the country.

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