What does it mean to be “rich”?

According to The Wealth Report, A Rich Person’s Definition of Rich, Wall St. J., Jan. 9, 2008, a net worth of $1.4 million will place a person in the top 5% of Americans. 

However, a survey by Spectrem Group of households with $500,000 or more of investible assets revealed that to be rich, “45% said $5 million or more, 25% said $25 million or more, and 8% said $100 million.”

The article also reports that:

Previous studies have shown that when people are asked how much it takes to be rich, they always give a number that’s twice their current net worth or income. Those with $100,000 in incomes say $200,000, while those worth $5 million say $10 million.

All of these studies show that when it comes to defining rich, Americans of all income levels always look up, rather than down.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.