The Illusion of Wealth: High Earners Still Living Paycheck to Paycheck

Despite the average household's net worth increasing by 37% between 2019 and 2022, many high earners still consider themselves "not rich yet" due to a higher cost of living, growing savings shortfall, and the impact of inflation and instability. Only 14% of Americans consider themselves wealthy, with the majority feeling financially stretched and living paycheck to paycheck. A recent report found that 67% of Americans would need at least $1 million to feel rich, up from 57% the previous year. Many people rely on credit cards to cover expenses, leading to a spike in credit card debt. High-cost debt is now seen as the biggest obstacle to building wealth. Feeling financially secure is more about spending less than you make, and setting long-term goals can help achieve this balance. Homeownership, historically tied to feeling wealthy, has become a source of stress due to skyrocketing housing prices and higher mortgage rates.