What Makes Someone Wealthy?
Audio version available here (2 min.)
How do you define wealth? Do you consider yourself wealthy? Do you measure your wealth goals by comparing yourself to your colleagues or elite entrepreneurs like Jeff Bezos and Elon Musk? There are many ways America defines wealth. Let’s explore them, and how you might reach your goals.
Out of 1,900 American adults polled by Fidelity Investments, 89% do not consider themselves wealthy. Their measures for being wealthy? They vary. A consensus between non-high-net worth individuals and high-net worth individuals polled (for the purposes of this survey, “$1 million or more in savings and investable assets not including real estate or retirement funds” is the threshold) is that 49% of both groups agree that owning a home is an indicator of wealth.
However, high-net worth individuals consider the ability to travel and take vacations as the main indication of wealth. Meanwhile, 71% of non-high-net worth individuals prioritize not living paycheck to paycheck as being wealthy. Though 57% also attributed vacations and travel towards wealth as well. More than half additionally say that passing down money to future generations is a wealthy activity.
What do these responses mean? Primarily, one of the biggest blockers against Americans feeling wealthy is the housing affordability crisis. While mortgage rates are no longer at the outrageous near-8% from 2023, we’re currently sitting on an average of 6.9%. Combined with low inventory and high prices, it is not easy for many to purchase a home in this environment. Another area of concern is rising debt. 44% of respondents blame credit card debt for their inability to accrue wealth. This is a reasonable concern, as “Americans now owe a record $1.17 trillion on their credit cards”. Having to regularly pay off debt with high interest rates impedes on an individual’s ability to invest and generate more savings and wealth.
With these findings in mind, do you consider yourself wealthy? Are you facing similar roadblocks, or do you have more ambitious goals for your personal wealth? One way you can definitely save money and grow your wealth is through tax planning. After all, taxes are inevitable, but this doesn’t mean you have to throw thousands of dollars of your hard-earned money to the IRS every year. With the right guidance from tax professionals and XQ CPA’s book How to Grow Your Wealth Through Tax Planning, you can rise against a tough economy and truly become wealthy.
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Want to pay less taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
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