How much money do you need to make to be considered “wealthy?”
A recent survey of millenials (those born between 1981 and 1996) published Tuesday morning by the financial web site LendEDU, revealed that 31% said they believe that it takes an individual income between $101,000 and $250,000 to be wealthy, while another 23% said it takes between $251,000 and $500,000.
The 1,000 respondents were divided evenly by income, and 45 percent of low-income millennials believe an annual income between $75,000 and $100,000 is considered wealthy, while only 10 percent of high income individuals think the same.
A recent Pew Research Center analysis based on cost of living (based on 2016 data) set the threshold for upper income at $78,440 for an individual.
Millennials, especially those in the upper income bracket, may still think they have more work to do to earn the “wealthy” tag, but they may have already hit or even surpassed that milestone. This, of course, might not necessarily be a bad thing if it encourages younger Americans to spend wisely and exert maximum effort to increase their earnings.
The LendEDU survey divided respondents into $49,999 or lower, $50,000 to $99,999, and $100,000 or higher groups for the purpose of the survey.
The average millennial spends $1,476 on housing expenses each month and an additional $1,832 on non-housing expenses. 36% answered that they were living comfortably within their means, and another 36% said they were “just barely” spending within their means. Just 2% said they were spending way too much, and 13% said they were spending a little bit too much.
Nearly a quarter of millennials believe they will be less wealthy than their parents in their lifetime.
Asked whether they expect to become a millionaire, 28% of all respondents answered “Yes,” 59% of all respondents answered “No,” and 13% were unsure.
To read the full study, go HERE.