Americans are split on their definitions of wealth, according to a recent survey by Charles Schwab, with some describing wealth as a specific sum of money and others describing it more as a state of mind. When asked “How do you define wealth?” the top five sentiments were:
- Having a lot of money (27 percent)
- Enjoying life’s experiences (24 percent)
- Being able to afford anything they want (22 percent)
- Living stress-free and having peace of mind (19 percent)
- Having loving relationships with family and friends (12 percent)
When asked to express how much is required to be considered “wealthy” in America, the average response was $2.4 million — nearly 30 times the actual median net worth of U.S. households according to the U.S. Census Bureau. Yet, when asked to compare two opposing ideas of wealth at a more personal level, Americans leaned into things that money can’t buy.
- 65 percent equate wealth with having good physical health vs. having lots of money (35 percent)
- 58 percent say wealth is about having gratitude vs. having money (42 percent)
- 56 percent believe wealth is about building community vs. working on one’s career (44 percent)
“Wealth is often thought of as a lofty, unattainable number that doesn’t apply to most of us, but that’s an old-fashioned notion that needs to be retired,” said Terri Kallsen, executive vice president and head of Schwab Investor Services. “It doesn’t matter whether you have a lot or a little. What matters is that you think about the money you have as your wealth, and that you pay attention to it. Being engaged is the only way to reach your personal goals.”
“Money is a strange thing. It ranks with love as our greatest source of joy, and with death as our greatest source of anxiety.” – Joe Moore, offensive line coach at Notre Dame under Head Football Coach Lou Holtz (’80s- ’90s)
How do you define wealth? Whether you think of wealth in terms of mindset or assets, it’s important to keep your financial and personal goals in your sightline as you tackle day-to-day life. The New Year is a great time to take a fresh look at your financial plan. Your Perspective Financial advisor would love to take the time to review it with you. Call or email us any time.