Wealth is a relative concept, and different people may have different opinions on what it means to be wealthy. However, one way to measure wealth is by looking at the net worth of individuals or households, which is the difference between their assets and liabilities.
According to the 2023 Modern Wealth Survey by Charles Schwab, the average net worth that Americans say is needed to be considered wealthy in the U.S. is $2.2 million. This is up from $1.9 million in 2020 and varies by region and city. For example, in San Francisco, the most expensive city in the survey, respondents said they needed $4.7 million in net worth to be wealthy, while in Houston, the least expensive city, they said they needed just $2.1 million.
What about Tampa, Florida, where many of our clients live? How does it compare to other cities and the national average?
According to CNBC, Tampa residents said they needed $2.4 million in net worth to be wealthy, which is slightly higher than the national average and lower than most other major cities.
Tampa is one of the fastest-growing cities in the U.S., with a population of about 400,000 and a median household income of $59,893, according to the U.S. Census Bureau. The cost of living in Tampa is lower than the national average, but higher than some other cities in Florida. The median value of owner-occupied housing units in Tampa is $277,700, which is higher than the state average of $248,700.
Tampa residents also have different perceptions of wealth than other Americans. For instance, 52% of Tampa respondents said they feel wealthy, compared to 48% of all respondents. Moreover, 60% of Tampa respondents said they live paycheck to paycheck, compared to 53% of all respondents.
Additionally, Tampa residents have different priorities and goals when it comes to their finances. For example, 40% of Tampa respondents said their top financial goal is saving for retirement, compared to 35% of all respondents. Furthermore, 38% of Tampa respondents said they would use an unexpected windfall to pay off debt, compared to 29% of all respondents.
Wealth is obviously a subjective term that depends on various factors such as location, income, expenses, assets, liabilities, and personal preferences.
The real question is do you have this kind of wealth? The answer unfortunately is few have this kind of wealth.
The better question for many may be “do you have a good financial plan and a willingness to embrace the facts and options available to you?”
Yes, it would be simple if we were all “wealthy,” but the fact is that more than 90% of the population will never meet the definition of wealthy.
So, what are you going to do to meet your specific goals and objectives without the ability to spend like a politician (i.e., the wealthy).
We can help with that plan! Click here to get started.