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Are You Considered Rich if You’re a Millionaire?

The word “Millionaire” is often associated with an overly wealthy individual, one that has wealth beyond what most people can fathom. However, when one speaks with their financial planner, it is often agreed that in order to retire comfortably, one must have over a million dollars in investments to do so. So, when one reaches a million dollars in assets today, are they really considered ultra wealthy?

According to a recent book, “The Middle Class Millionaire”, 8.4 million Americans have a net worth between $1 million and $10 million (including home equity). The fact that these people are millionaires, yet are still considered middle class, shows that a million dollars is not what it used to be.

If you’ve ever spoken to your grandparents about their childhood, you’ve inevitably heard them utter the phrase, “When I was a kid, I could buy a candy bar for a penny!” After years of inflation, our dollar is worth about a hundred times less compared to 70 or 80 years ago. Roughly calculating the figures, if someone were a millionaire in that era, it would be equivalent to an individual having a net worth of 100 million dollars today, which is certainly still a rarity.

As time goes on, the term “millionaire” will continually lose its luster, and the phrase “billionaire” will take its place.

Getting back to the question though, “Are you rich if you’re a millionaire?” Being a millionaire today has become more common, but it still is a category all it’s own. Only about 4% of the United States population has a net worth of over $1 million dollars, meaning that it is still out of the reach of many. While I believe that through proper investing and planning, anyone can achieve this monumental level of a millionaire, most of us have not. The word “millionaire” is still a term for the rich.

Money

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

13 Comments

  1. I always get annoyed when people say it isn’t the same…When you are in the top 4% of the country you are rich lol

    • I agree with you 100% Evan. While it may not be as prestigious a milestone as 50 years ago, it still is quite rare, and therefore, I designate it as rich.

  2. I agree with Evan as well. If you are in the top 4% of the country, you are rich! New Yorkers with a high standard of living may have something to say though. LOL!

    • Ha, nice point Ken! Those that have a high cost of living might think that a million dollars is nothing, but I do agree with you, a millionaire is still rich in my book.

  3. A million dollars is relative. But it’s always worth having a goal ~ because they stretch us, and working towards a goal is satisfying.

    • Good point Johannah! I love having goals, and I know that I’m a better person today because of my goals in the past. 🙂

  4. I have over 1.2 million in assets but i dont consider mysrlf rich as i have no money left at the end of the week cause it all gets spent on the loans

    • Do you own real estate? Your investments sound a little dangerous. If you don’t have any money whatsoever at the end of the month, you could be heading for financial disaster. I suggest that you sell off a few of your assets so that you can build up an emergency savings. Otherwise, you may lose the entire empire you’ve built….

      I’d be interested in chatting with you – please contact me through the “Contact/Advertise” tab above.

  5. I don’t feel like I’m rich. I have over $2 million worth of assets and 80%%of it is in real estate, but I have little cash on hand. Luckily I do not have any loans. I feel blessed but I don’t feel like I’m rich. I’m not quite living from pay check to pay check but I can’t just take off when ever I want first class or on a private jet.

    • Hi Dana. I understand that you don’t feel rich because you aren’t earning as much cashflow as you’d like, but how much of your $2 million is making you money? I mean, if you live in a $1,000,000 house that earns you nothing, I can understand your predicament. I would love to hear more details! Thanks for the comment Dana.

  6. My father is 70 and has $2 million saved that we know about all he really did was earn a handsome some of money and save. Although he is able to pay for things without loans he doesn’t feel rich

    • With $2 million at 70 years old, he should probably feel rich. After all, he could gamble $100k on red tomorrow, lose it all and not feel the difference. That’s when you know you have a fair amount of money. I suspect that your father lives quite frugally though and you wouldn’t guess he’s a millionaire by looking at him. First of all, good for him! But secondly, he should really enjoy his wealth while he can.


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