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The Moving Goalpost: What Does It Actually Mean to Be Wealthy?


If you ask ten different people what it means to be wealthy, you’ll probably get ten different answers.


Is it a number in a bank account? A specific tax bracket? Or is it something entirely different?


When we look closely at the data—and ask real people what they think—the definition of "wealth" starts to shift from a rigid financial metric into a deeply personal state of mind.


1. The Numbers Game: Income vs. Net Worth


The most common way society measures wealth is by income. If we look at U.S. taxpayers [1], the thresholds to enter the top percentages of earners are steep:


  • Top 1%: An adjusted gross income (AGI) of at least $675,602

  • Top 5%: An AGI of $272,209

  • Top 10%: An AGI of $187,608


Politicians have their own definitions. For instance, federal tax debates have previously drawn the line of the "rich" at household incomes exceeding $450,000.


But is wealth really about income, or is it about Net Worth?


According to a survey by the Spectrem Group of 1,100 investors worth $5 million or more, the majority agreed that wealth should be measured by net worth—only 6% said it should be based on current income.[2]


Yet, even among the wealthy, the target keeps moving. When the wealth-management firm UBS asked individuals with a net worth between $1 million and $5 million the question, “Do you consider yourself wealthy?"


  • Of those worth between $1 million and $5 million, only 28% said yes.

  • Of those worth more than $5 million, only 60% said yes.


When asked what it would take to finally feel wealthy, the most common answer wasn’t a number. It was having “no financial constraints on activities.” In other words, they didn’t feel rich because they still couldn’t afford to do everything they wanted.[3]


2. The Comparison Trap


According to the Wall Street Journal’s Wealth Report[4], the ultimate benchmark for being rich is almost always twice as much money as you currently have.


  • People making $100,000 a year think it takes $200,000.

  • People with a net worth of $5 million think it takes $10 million.


If you fall into that trap, you will never have "enough."


This is compounded by the staggering economic divide within the upper echelons themselves. Research by economists Emmanuel Saez and Gabriel Zucman found that while the bottom half of the top 1% has seen their wealth share remain flat for decades, the top 0.01% (those worth $100 million or more) saw their share of wealth more than double between 1995 and 2020.


Perspective matters globally, too. Credit Suisse reported that it takes a net worth of $1 million to be in the top 1% of global net worth. In contrast, data from the Federal Reserve’s Survey of Consumer Finances shows you need a net worth of over $11 million to join the 1% in the United States.

The Reality Check: While $1 million makes you incredibly rich compared to most people on Earth, there is no magic number that automatically makes you feel rich. As highlighted in the classic book The Millionaire Next Door, most true millionaires don't live opulent lifestyles—they live right next door, quietly accumulating freedom.

3. What the Professionals Say


When financial advisors—the people who manage money for a living—were asked how they define wealth, they shifted the conversation entirely away from spreadsheets:


  • "Wealth means enough to live happily and comfortably without the fear of not having enough money."

  • "When money is no longer your primary consideration for decision-making."

  • "True wealth is time freedom—having the financial ability to delegate activities in your life that you don't value or enjoy."

  • "The real point of wealth is the freedom it can bring you. Wealth means being able to spend your days the way you choose."


4. What Real People Say (The Crowdsourced View)


I posted the question, “How do you define being rich or wealthy?” to my Facebook page and interestingly, not a single person gave a specific dollar amount.


Instead, their responses fell into a few distinct categories:


Category 1: Time & Freedom


  • "Being able to live comfortably without having to work unless you want to."

  • "Monthly passive income exceeding monthly expenses, thus having time freedom and not having to trade one’s time for money."

  • "Not having to sell one's labor out of economic necessity."


Category 2: Peace of Mind & Flexibility


  • "Rich is not having to worry if you can afford a new car should your old one bite the dust."

  • "Having enough of a cushion that delaying or missing a paycheck doesn’t threaten you with financial disaster."

  • "Rich: Have enough money to say yes without thinking about how you're going to pay. Wealthy: Have enough money to not think about how the bills are getting paid."


Category 3: Relationships & Health


  • "Both an abundance of money so you don’t worry about money, and a mind that is healthy enough to enjoy life with those you love. If your loved ones are alive, you’re so rich."


Finding Your Own "Enough"


When you strip away the tax brackets and the luxury lifestyle marketing, a few undeniable themes emerge. To some, wealth means financial independence—the moment you no longer have to work for money. To others, it’s simply comfort—the ability to live beautifully, give generously, and handle life's emergencies without panic.


To me, being wealthy means the ability to live a life with purpose without having to trade your time for money.


I’ll leave you with a quote from Warren Buffett, who arguably knows a thing or two about money:

"Really getting to do what you love to do every day—that's really the ultimate luxury."

Over to You:


  • How do you define wealth?

  • Do you consider yourself wealthy right now?

  • If not, what is the shift—financial or mental—that needs to happen for you to feel that way?


Let me know in the comments below!



 
 
 

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