What defines wealth to you?
11 percent of those surveyed in the annual Modern Wealth Index from Charles Schwab chose “having lots of money” as their definition of wealth. 18 percent defined it as being able to afford everything they want. But 17 percent defined it as “loving relationships with family and friends.” A majority (62 percent) found spending time with family makes them feel wealthy in their lives.
The online survey consisted of 1,000 Americans between age 21 and 75. The survey found that to be financially comfortable in America today requires a net worth average of $1.4 million, up from $1.2 million last year. To be “wealthy,” would be an average of $2.4 million.
However, when it comes to creating wealth, it’s not just money that matters. 55 percent said “taking time for myself” made them feel wealthy. Certainly having time for yourself and your family requires some amount of financial freedom. Even for those with jobs, there is pressure to dedicate as much time as possible to their employer. A majority of American workers leave unused vacation time each year.
The survey found that for some, small “luxuries” can create a sense of wealth. 41 percent felt that having meals out or food delivered to them made them feel wealthy. Another 33 percent (and 44 percent of millennials) felt that services such as Netflix, Spotify, or Amazon Prime made them feel richer, which shows the impact that relatively inexpensive and widespread technology can have. Some write-in comments included “access to healthcare,” being capable of helping “close friends and family financially,” or even just “waking up in the morning.” Certainly feeling grateful for what you have contributes to a sense of wealth and well-being.
There are also some heartening indications that younger generations are taking charge of their financial future. 49 percent of millennials regularly rebalance their portfolio, compared with 43 percent of boomers. They also are optimistic about their future - some 64 percent of millennials believe they will be able to create wealth at some point in their lives, compared to 22 percent of boomers.
At TABER Asset Management, we think of wealth as more than a number figure, but as a resource to have more choices in life. We also believe in the power of feeling grateful for what you have and enjoying the small “luxuries” in life. To learn more about how we may help you on a path to greater financial prosperity, please contact us at email@example.com or call 515-557-1860.