How Much Do You Need To Be "Wealthy" In America? Here Is The Magic Number
Which, of course, is ironic, considering that money is required to do all the things list above like travel and live stress-free. You're going to be hard pressed to find anyone who can "live stress free", "afford anything they want" or "enjoy life's experiences" without having the giant wallet needed to fund all these expensive plans. But still, the American dream seems to still be in tact, at least in the minds of younger generations:
Millennials displayed some youthful optimism when it came to their financial future. Some 64 percent of twenty- and thirty-somethings believe they’ll be wealthy (the cash kind) at some point in their lives, compared with 22 percent of boomers. Maybe better financial habits will help that happen, since more millennials than boomers said they regularly rebalance their portfolio—49 percent compared with 43 percent, respectively. The same percentage of millennials and boomers, 24 percent, felt “very confident” about reaching financial goals.
This is also ironic, as we just reported weeks ago that millenials with student debt have negative net worth for the first time ever. Recall that the Young Invincibles released an update to their report, “The Financial Health of Young America: Measuring Generational Declines Between Baby Boomers & Millennials”, which included a cross-generational study of the financial well-being of Millennials today versus Baby Boomers when they were in their adolescence. The update covered the economic challenges facing millennials age 25 to 34 between 2013 and 2016.
What it found was shocking: despite the fact that this has reportedly been the second longest economic expansion/central bank-induced channel of financial capital into speculation and financialization, the update showed how the millennial generation has transformed into the lost generation, as their financial security has eroded late in the business cycle.
For the first time, young adults age 25 to 34 with college degrees and student loans have a median net wealth of negative $1,900, said the advocacy group.
So while it may be true that you don’t need to be a billionaire in order to find happiness and/or freedom for yourself, getting past a certain point of savings and wealth is certainly paramount in achieving "happiness" - regardless of how you define it.
As for most of today's youth, stuck in a negative net worth prison, the goal to reaching the "magic number" between $1.4 and $2.4 million seems virtually unachievable.