Everyone has her/his own dollar amount yardstick that defines being wealthy. For some, being wealthy translates into having $1M or $2M or $5M or never enough. For others, being wealthy translates into having enough money to put food on the table.
To put “being wealthy” into some sort of measurable dollar amounts, the Charles Schwab Corporation put together its 2018 Modern Wealth Index. Polling some 1,000 people in the US, ages 21 – 75, by Koski Research, a market research firm, pinpointed $2.4M as the amount of money needed to be “wealthy.” To “feel comfortable” translated into $1.4M.
Here are 8 definitions of wealth, according to the Charles Schwab 2018 Modern Wealth Index.
- 28% – living stress free/having peace of mind
- 18% – being able to afford anything you want
- 17% – having loving relationships with family & friends
- 14% – enjoying life’s experience
- 11% – having lots of money
- 7% – having good health
- 2% – being charitable
- 3% – other
How does one become wealthy?
- 49% – saving and investing
- 40% – hard work
- 11% – luck
What makes people feel wealthy on a day-to-day basis?
- 62% – spending time with family
- 55% – taking time for oneself
- 49% – owning a home
- 41% – having meals out and/or delivered
- 33% – subscribing to services like Netflix, Amazon Prime, Spotify
- 29% – being groomed/pampered
- 27% – having latest tech devices
- 22% – shopping at specialty grocery stores
- 21% – having busy social life
- 21% – driving luxury car
Interesting that “having lots of money” ranks 5th in terms of definitions of wealth. Interesting too that owning a home ranks 3rd in terms of “feeling wealthy.”
How would your real estate clients define wealth and how do you think they would “become wealthy?” How would you?
Any ideas about how your clients would define “feeling wealthy?”