That sounds about right to me. Our net worth fits this - assuming we believe current market valuations - but I don’t feel anywhere near “wealthy”. I’m aware that we’re not struggling and probably FI but that doesn’t translate to wealthy for me. I’m still shopping at Aldi weekly, we don’t dine out, we buy cars cash and run them into the ground (or at least until an idiot totals them for us).
For me, wealthy is when I’ll buy stuff without checking how much it costs. Not sure if that’ll ever happen but $5M isn’t it IMO.
“Comfortable” is being able to live off what you have. That number is highly variable, but can be much lower than $5M.
When your kid’s school is raising money for a new playground, you buy a box of candy bars when you are comfortable. When you are “wealthy”, you donate the playground. Which is to say, what I consider wealthy requires adding an additional zero to the numbers mentioned.
I would say $5m would be pretty “well off”, but not wealthy. Many folks here fall into that category. We all work harder than the average. In our case we have more help now than in the past, because we have managed well & can relax a little more. I still look for bargains, shop at discount stores & like those cash payouts on my Citi double cash cc.
Life is a lot easier now. But many of us can look back at those hard times when we were literally counting those pennies. I still check those prices but buy now if item is desired.
So we’ve come a long way baby! Not wealthy but quite comfortable.
“Feeling” wealthy and “being” wealthy are two different things.
Lots of old people don’t feel old. But they ain’t young.
Its always amazed me how we Americans are averse to claiming wealth. If you ask us it seems that 99% of Americans will swear up and down that they are ‘middle class’. Yet we as a nation spend way too much time working job and striving for wealth.
Also on this topic, I do kind of think that ‘wealth’ measures might work better if they exclcude some amount of home equity and retirement savings. Especially as you get older.
I mean a 63 year old with a paid off house and $750k in their retirement account is not really “rich” cause all that money is just to pay for their looming retirement.
The question wasn’t about how much is needed for each generation to retire today.
The increasing amounts coincide with reality bitchslapping you across your face. Kids think a million dollars is amazing. Then you grow up a little and realize a million dollars isn’t as magical as you thought. So it becomes $1.5 million, until you grow up a little more and find it still isn’t what you thought it’d be. So then it’s $2M, then $2.5M, etc.
The Boomers’ number is twice as much because they’ve been around the block a few times, and know a buck isn’t going to get you as far as younger you thought.
This is probably at least in part due to lifestyle creep. When you’re a kid you have no expenses or responsibilities, so a million bucks can go so far it may need some imagination. As we grow up, we saddle ourselves with expensive responsibilities (spouse, kids, home, cars), and our imagination becomes less … imaginative.
LOL, I thought you were talking about an unplanned pregnancy . But rent increase sounds voluntary. I paid about $500/mo rent in college… and half of $1300/mo rent for a 2-br in LA after graduating. I had a roommate and we didn’t live in a mansion with a view. Maybe a high-rise in NY or SF would set you back $3K/mo. Around here you can rent a whole house a few miles from the beach for that much.