• Few Americans (even millionaires) can be confident about their financial situation.
• High costs and home prices have made it difficult to feel rich.

Inflation It’s getting colder and wages are rising. But very few Americans (including these) millionaires — make sure of their financial situation.

According to Fidelity Investments, 89 percent of Americans across all income and wealth levels said they do not consider themselves wealthy. Asset Mobility Status research. Fidelity surveyed 1,900 adults in August.

“Only one-tenth of Americans today consider themselves rich, even though many have significant wealth,” said Rich Compson, head of wealth solutions at Fidelity Investments.

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For most Americans, the definition of being rich is relatively modest; 71 percent say being rich is the ability to not just have to live paycheck to paycheck.

About 57 percent said wealth also requires traveling and vacationing, while 56 percent said wealth means being able to pass money on to future generations.

Nearly half (49%) of respondents said feeling wealthy means the ability to own a home, Fidelity found.

For high-net-worth individuals, or those with $1 million or more in savings and investable assets excluding real estate or retirement funds, more households associated wealth with travel and fewer said the main criterion for feeling wealthy was not living from paycheck to paycheck.

Surprisingly, the same share (49%) said being rich means owning a home.

Obstacles to feeling rich

Housing affordability has become a major obstacle.

High house prices and high mortgage rates, along with low inventories, have put property out of reach for many households.

It’s a “good development” that affordability has improved slightly since October 2023, when mortgage rates were near 8%, according to a new analysis by . Freddie Mac.

While vacationing has also become more expensive, Americans still determined with trip.

Travel spending among households remains above pre-pandemic levels, some reports show.

But, concerns about high prices they are playing a bigger role in keeping some holidaymakers at home. Travelers had to adjust their budgets accordingly, spending nearly 10% more compared to 2023, according to another study. Deloitte.

Rising debt is another threat to wealth

At the same time, rising consumer debt has put pressure on household balance sheets. Nearly half of Americans, 44 percent, said credit card debt is the biggest threat to their ability to build wealth, according to a separate report by . Edelman Financial Engines.

Americans now have record debt $1.17 trillion The average balance on credit cards and per consumer is as follows: $6,329It rose 4.8% annually, according to the Federal Reserve Bank of New York and TransUnion, respectively.

Personal Jean Chatzky says, “High-interest credit card debt is more of a savings killer than other types of debt, because once you have it you have to feed the beast. You can’t save, you can’t invest.” financial expert and CEO of HerMoney.com, he told CNBC In September.

“This gets in the way of people building real wealth and therefore feeling richer,” he said.

What would it take to feel rich

Most people (roughly 65% ​​of respondents) said they would need $1 million in the bank According to findings from Edelman Financial Engines, there are those who consider themselves rich, although 28 percent of respondents say that this requires at least $2 million, and 19 percent say $5 million or more is the bar.

68 percent of current millionaires said they would need at least $3 million, and 40 percent said they would need $5 million more to feel rich.

Edelman Financial Engines surveyed more than 3,000 adults over 30 from June 12 to July 3; these included 1,500 wealthy Americans with household assets between $500,000 and $3 million.

When it comes to their salaries, 58% of survey respondents said they need to earn an average of $100,000 to not worry about daily living expenses, and a quarter said they need to earn more than $200,000 to feel financially secure.

In most cases, feeling financially secure depends not on how much you earn, but on your commitment to saving more than you spend. maintaining a well-diversified portfolio Experts often say that it is necessary to work with a financial advisor.

“Having the confidence to invest strategically is what separates those who feel wealthy from those who don’t,” Fidelity’s Compson said. “Improved trust starts with education and planning.”

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