You can live in a home with an area of 5,000 square meters in a closed neighborhood. You drive a luxury all -terrain vehicle, resting somewhere every summer – maybe Italy, maybe Bora Bora – and spend your card at Whole Foods without checking the total number at all. On paper, your life seems rich. But are you?
That’s where things are blurring. Because in today’s economy to be rich is not only to look for the part – it is about how your income and net value are arranged against everyone else. And depending on where you live and how you built your wealth, you can still fall in the upper middle class.
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Geography plays a huge role in the inflation of the lifestyle and how you feel “rich”. In San Francisco, an income of $ 300,000 can buy you an apartment with two bedrooms and a decent habit. In the Midwest, it can make you feel like a millionaire.
According to Pew Research, medium -income households earn between $ 56,600 and $ 169,800 a year, depending on the size of households and local living costs.
Many sources, including Gobankingrates, make the upper middle class income somewhere between $ 106,000 and $ 150,000, although this also varies depending on the region.
According to a 2024 Smartasset survey, the revenues needed to join the first 1% of the winners in the United States are at least $ 787,712. However, in countries such as Connecticut, Massachusetts and California, the threshold climbs after $ 1 million a year. In Massachusetts alone, a top 1% winners carry at least $ 1.13 million.
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As for net value, the latest Federal Consumer Finance Survey reports that the average net household value in US households is around $ 192,900, while medium -income households usually run around $ 480,000.
For the upper middle class, the forecast varies between $ 500,000 and $ 2 million, depending on age and assets – data cited by analysts as financial samurai, which are aggregated by Federal Reserve and IRS data.
So what is considered rich? According to three years of Federal Reserve, top 10% of households have a net value starting at $ 1.9 million.
The best 1% households exceed $ 13 million.
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Being rich is not only to hit a particular number – this is about how you manage it, grow up and what kind of money they actually allow you to do.