Are You Richer Than You Think? A Surprising Number Of People Consider Themselves ‘Poor’ But They’re Actually In The Top 10% Of Earners
In a comprehensive report by Bloomberg, the nuanced financial realities of America’s “regular rich” are brought into sharp focus. Despite earning well above the national average, a significant portion of these individuals do not perceive themselves as wealthy, highlighting a complex relationship between income, wealth perception and societal expectations.
The report, based on interviews and a nationwide survey of over 1,000 Americans who earn at least $175,000 annually — placing them in the top 10% of U.S. tax filers — reveals that a quarter of respondents view themselves as “very poor,” “poor” or just “getting by.” This sentiment persists despite their high incomes, ownership of homes and the ability to save for retirement, suggesting that the American Dream’s traditional markers of success are no longer sufficient for many.
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Over half of the surveyed group expressed concerns about their financial security, with 25% doubting they would surpass their parents’ financial status. The rising cost of living, including expenses related to education, housing and basic necessities, fuels these anxieties. The allure of lower taxes and a cheaper cost of living has prompted some to consider relocating from high-cost cities to more affordable regions across the United States.
Bloomberg’s findings illustrate a broader societal issue — the disconnect between actual wealth and the perception of financial well-being among the affluent. This phenomenon is not isolated to any one demographic but spans various professions, age groups and political affiliations. The report suggests that social media and constant exposure to lavish lifestyles exacerbate feelings of inadequacy among the well-to-do, despite their financial resources.
This sentiment of financial insecurity among the affluent could have far-reaching implications for American capitalism, raising questions about the sustainability of upward mobility and wealth accumulation in the current economic climate. Bloomberg’s investigation into this subject sheds light on the complexities of wealth perception in America, suggesting that feeling “rich” is as much about mindset and societal pressures as it is about your bank account balance.
Social media worsens this issue by continuously exposing individuals to lifestyles that seem unattainable, further distorting perceptions of wealth and success. Constant comparison can diminish feelings of accomplishment and satisfaction, even among the financially well-off. It highlights the growing disparity between the ultra-wealthy and the rest of society, fueling a sense of being left behind despite personal financial achievements.
Financial advisers can play a significant role in helping individuals understand their true financial standing, offering clarity and perspective on what it means to be genuinely wealthy or financially secure. By providing personalized advice on budgeting, investing and saving for retirement, advisers help bridge the gap between income and wealth perception. They assist in setting
realistic financial goals and developing strategies to achieve them, ensuring that individuals can make the most of their earnings while addressing the underlying concerns of financial security and lifestyle sustainability.
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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.
Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.
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