What do you need to be Rich? Here is what the latest report says

Being wealthy holds a different meaning for everyone, for many people, it simply means having a lot of money while for others it means having financial security. However, the 2023 Modern Wealth Survey by Charles Schwab shows that wealth is more about just a bank account balance. 

The annual survey by the company records the responses of 1000 people aged from 21-75 and showcased that everyone has a different definition of what it means to be wealthy. 

Apart from that the survey revealed that an amount of $2.2 million is required to be considered as wealthy in 2023.

The survey also found that 48% of people who feel wealthy have an average net worth of $560,000 in comparison to the $2.2 million required. 

Source: 2023 Schwab Modern Wealth Survey

It also found that people who feel wealthy are more likely to have a documented financial plan, feel in control of their finances, and be confident that they will reach their financial goals. They are also more likely to report feeling happy, healthy, and fulfilled.

Here is what the blog from Charles Schwab states: “When it comes to feeling wealthy, survey respondents increasingly say they place value and lean into things that money can't buy. For 62% of survey respondents, enjoying healthy relationships with their loved ones better describes wealth than having a lot of money.”

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How many Americans have strong financial planning? 

Only 35% of Americans have a financial plan. The survey found that the two main reasons people don't have a financial plan are lack of money and complexity. In fact, 44% of people without a financial plan believe they don't have enough money to need a plan.

This is a concerning statistic, as having a financial plan is essential for achieving financial security. A financial plan can help you track your spending, save for your goals, and make sure you're on track to reach your financial goals.

Source: 2023 Schwab Modern Wealth Survey

Does Social Media Play a Role in People's Finances? 

Yes, social media plays a huge role in people's financial decisions. The survey found that 47% of the people feel wealthy if they can afford the same lifestyle as their friends. 

Moreover, 37% of the respondents said that they compare their lifestyle with their family and friends on social media. 

In addition, 34% of these people make purchases based on what they see their friends and other influencers doing, and 33% of people make investments based on their friends' and other influencers' decisions.

Rob Williams, managing director of financial planning at Charles Schwab told Fox News that “The accessibility of social media and being able to instantly scroll and see fancy new items or exotic trips may influence how individuals feel about their own wealth.”

“If they feel as though what their family and friends are buying or doing are within their financial reach, they are more likely to identify as feeling wealthy”, he added. 

This is a significant finding, as it suggests that social media is a powerful tool that can influence people's financial behaviour. 

Source: 2023 Schwab Modern Wealth Survey

To conclude, the 2023 Modern Wealth Survey from Charles Schwab provides valuable insights into what it means to be wealthy today. It shows that wealth is more than just money. It's also about having the freedom to choose, the control to make your own decisions, and the peace of mind to know that you're financially secure.

If you want to be rich, focus on all aspects of your life, not just your finances. Build strong relationships, take care of your health, and live below your means. With time and effort, you can achieve the wealth you desire.

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