How Much Money Does It Take To Be Considered Wealthy In The U.S.?
The United States is a large and diverse country with big regional variances and even noticeable differences from one city to another. Everything from the food people eats to the way they dress to the way they talk can be night-and-day different in different parts of the country.
But it’s not just the food we eat and the way we dress that can be hugely varied. How much money people make can also vary widely depending upon where you are in the country. The reasons for that are complicated, but they can be dramatic too.
To be considered “rich,” a household must earn twice that, or a minimum salary of $130,545. However, you also need to be in the top 20% of earners to be considered rich, which looks a little different in each city. In other words, $130,545 might not get you very far in New York City. That’s without even get into wage inequality and income distributions.
Cost of living supported with research
Researchers found a massive difference between what low-earners and high-earners make in 100 of the country’s largest cities and that in some cities, it takes hundreds of thousands of dollars more a year in earnings to become “rich.”
In San Francisco, the difference between the top 20% and bottom 20% of households exceeds $213k, meaning the wealthiest earn seven times more than their working-class counterparts. In 36 cities in the United States, the difference between the minimum income threshold for the top earners and the maximum income threshold for the bottom earners exceeds a difference of $100k.
In states where the threshold to be in the wealthiest 20% of households is the highest, the overall cost of living also tends to be high. For example, in Massachusetts, where only households earning at least $171.6k are in the top 20%, goods and services are about 10% more expensive than they are on average nationwide.
In 2018, the average amount needed to attain monetary contentment was $1.4 million, but by 2021, it was only $624k and was bumped up to $774k this year. Experts believe that may be because people simply learned to adjust their lifestyles and their financial outlooks after living through the pandemic.
The exact amount considered wealthy in 12 major metropolitan areas
- Atlanta: Average net worth it takes to be wealthy: $2.5 million
- Boston: Average net worth it takes to be wealthy: $2.7 million
- Chicago: Average net worth it takes to be wealthy: $2.5 million
- Dallas: Average net worth it takes to be wealthy: $2.6 million
- Denver: Average net worth it takes to be wealthy: $2.3 million
- Houston: Average net worth it takes to be wealthy: $2.6 million
- New York: Average net worth it takes to be wealthy: $3.4 million
- Phoenix: Average net worth it takes to be wealthy: $2.7 million
- San Francisco: Average net worth it takes to be wealthy: $5.1 million
- Seattle: Average net worth it takes to be wealthy: $3.2 million
- Southern California: Average net worth it takes to be wealthy: $3.9 million
More in Wealth
Tips On Getting Financially Organized
Money management and learning how to get the most out of every dollar is key to being successful because it allows...October 17, 2022
Here Are Some Best Sellers in Self-Help Books
Books can serve a variety of functions—from entertainment to education , but self-help books are intended to assist us in improving...October 4, 2022
Here’s Why Having A Chief Of Staff Is Necessary For Your Family Business
Family Businesses are a great way to generate generational wealth. They provide the community with experts in the field, but family...September 20, 2022
Do You Know Which Celebrities Had Famous Parents?
Long gone are the days when the children would inherit their parent’s profession; now, a farmer’s child may not become a...September 15, 2022
Wealthy Russians Are Quietly Unloading Real Estate Across The U.S.
For the longest time, wealthy Russians have made real estate investments in the United States. These oligarchs purchased a large number...September 7, 2022
Are You An MBA Graduate? Here Are Some Worthwhile Career Opportunities For You!
Having an MBA degree is a big plus nowadays. You can find tremendous career opportunities for MBA graduates, from human resources...August 24, 2022
Here’s What Every Entrepreneur Ought To Know About Seed Money
Starting a new business is just as exciting as it sounds. In fact, it is the first step towards becoming financially...August 16, 2022
Marilyn Monroe’s Secret Love That Ended In Miscarriage And Heartbreak
Marilyn Monroe is a name many people remember and will continue to remember as long as the American entertainment industry lives!...August 14, 2022
All You Need To Know About The Cost Of Living
When you pay your monthly bills, you probably notice that certain expenses rarely change by much. This list includes things like...July 23, 2022