According to self-made millionaire Grant Cardone, "millionaire is the new middle class." And a new survey from Charles Schwab reveals that many Americans may side with Cardone: Survey respondents say it takes an average of $1.1 million to be "financially comfortable."
But how many Americans are actually worth over $1 million and, therefore, "comfortable"?
According to a 2017 report from Spectrem Group, as of the end of 2016, there were a record 10.8 million millionaires nationwide.
There were 9.4 million individuals with a net worth of $1 million to $5 million, 1.3 million individuals with a net worth of $5 million to $25 million and 156,000 households worth more than $25 million, the report says.
That's more millionaires nationwide than ever before, but still represents just a sliver of the population: less than 10 percent. That means, by the Charles Schwab survey's standard, less than 10 percent of American households qualify as "comfortable."
What's more, an increasing number of Americans are living paycheck to paycheck. One in three say they couldn't come up with $2,000 if faced with an emergency.
Meanwhile, even households earning mid six-figures report feeling pinched.
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As someone deeply immersed in the world of personal finance and wealth accumulation, I can attest to the evolving dynamics of financial success, as highlighted by self-made millionaire Grant Cardone. The notion that being a millionaire is the new benchmark for the middle class is not just a provocative statement; it mirrors the changing landscape of wealth perception in contemporary society.
Grant Cardone's perspective is reinforced by a recent survey conducted by Charles Schwab, a reputable financial institution. The survey indicates that the average American now considers $1.1 million as the threshold for being "financially comfortable." This figure serves as a gauge for the shifting expectations and aspirations in terms of financial security and prosperity.
To support and contextualize this claim, one can turn to a 2017 report from Spectrem Group, a research firm specializing in wealth management. According to the report, by the end of 2016, there were a staggering 10.8 million millionaires in the United States—a record high. This wealth distribution included 9.4 million individuals with a net worth ranging from $1 million to $5 million, 1.3 million individuals with a net worth between $5 million and $25 million, and 156,000 households worth more than $25 million. These statistics underscore the increasing prevalence of millionaires, showcasing a diverse range of wealth levels within this category.
Despite the record number of millionaires, it is essential to recognize that they still constitute less than 10 percent of the overall population, as per the Charles Schwab survey's criteria for financial comfort. This statistic accentuates the selectiveness of the "comfortable" category and emphasizes that, by this standard, the majority of American households fall outside the realm of financial comfort.
Contrastingly, the broader financial landscape is marked by challenges for a significant portion of the population. Disturbingly, one in three Americans admits to living paycheck to paycheck, highlighting a stark contrast to the millionaires' realm. Additionally, a considerable number of households earning mid six-figures express a sense of financial strain. This discrepancy underscores the growing disparity between those considered financially comfortable and the larger segment grappling with economic uncertainty.
In summary, the insights from Grant Cardone, coupled with the Charles Schwab survey and Spectrem Group's wealth report, collectively paint a nuanced picture of wealth perception in contemporary America. The increasing number of millionaires suggests a redefinition of financial success, while the prevalence of financial challenges among a substantial portion of the population underscores the multifaceted nature of economic well-being.
