A million dollars once symbolized wealth and financial security, but many American millionaires today don’t consider themselves wealthy. According to a study by Northwestern Mutual, only one-third of individuals with at least $1 million in investible assets feel “wealthy.” For the rest, wealth seems more subjective and influenced by personal circumstances, such as where they live and their family responsibilities.

While two-thirds of millionaires may not identify as rich, their financial standing does offer them significant advantages. Compared to the general population, they tend to have better clarity over their spending and feel more financially prepared.

This is particularly evident in retirement planning, with 87% of high-net-worth individuals expressing confidence in their financial readiness for retirement, compared to just 54% of the general public.

Interestingly, most millionaires didn’t inherit their wealth. Nearly 80% consider themselves “self-made,” having accumulated their wealth through financial discipline and hard work. In contrast, only 11% attribute their wealth to inheritance, and a mere 6% credit a windfall event, like winning the lottery.

This self-reliance is reflected in their approach to finances—78% of millionaires describe themselves as “disciplined financial planners,” a stark difference from the 45% of the general population who identify the same way.

However, even disciplined financial planning has its challenges. With inflation driving up the cost of living, particularly for essentials like food, even the wealthy must contend with rising expenses. Additionally, the housing market has made homeownership increasingly difficult, even for higher-income earners.

Ultimately, while being a millionaire in America still comes with notable financial security, it’s clear that the landscape of wealth has shifted. What once felt like a financial milestone now offers a different reality, one shaped by rising costs, changing housing markets, and the nuances of individual financial circumstances.

Last modified: September 14, 2024