Credit: Shutterstock
For years, the million-dollar mark has been seen as the golden ticket to financial freedom. But according to the latest Modern Wealth Survey from Charles Schwab, that may be more myth than reality. Americans today say you don’t need a cool million to feel financially comfortable—you only need about $839,000.
Let’s break that down, because the idea of what it means to be “comfortable” with money is evolving fast—and so is the definition of what it means to be truly “wealthy.”
Comfort vs. Wealth: A $1.5 Million Gap
One of the most fascinating takeaways from Schwab’s 2025 survey is the huge gap between what Americans consider financial comfort ($839,000) and what they define as actual wealth ($2.3 million). That’s a difference of nearly $1.5 million—and a strong sign that most people don’t equate comfort with luxury.
In other words, while $2.3 million is the dream, $839,000 feels good enough to exhale, stop stressing over every bill, and maybe take that vacation you’ve been putting off.
So, What Is Financial Comfort?
The term “financially comfortable” doesn’t have a single definition. That’s part of the point. For many, it means being able to:
-
Pay the mortgage without stress
-
Handle medical bills and emergencies
-
Cover everyday expenses without going paycheck to paycheck
-
Retire with some breathing room
-
Enjoy a few “wants” beyond just the “needs”
As Rob Williams, a financial planning director at Schwab, puts it: comfort is about meeting your needs and wants. Wealth, on the other hand, includes fulfilling your wishes—the big, dreamy stuff like retiring early, jet-setting to Europe whenever you want, or buying that lake house.
Williams sums it up nicely: “Wealth is having more choices in how you use your time.”
Wealth Means More Than Money
Interestingly, Americans are redefining wealth in emotional and personal terms—not just in dollars. When asked what makes someone “wealthy,” these were the top answers:
-
Happiness – 45%
-
Money – 44%
-
Physical health – 37%
-
Mental health – 32%
-
Quality relationships – 24%
-
Life experiences – 24%
So while $2.3 million may be the numeric benchmark, many people view wealth as a blend of emotional well-being, good health, and meaningful connections. In fact, only 11% of survey respondents actually feel wealthy right now.
Gen Z and Millennials Are Feeling the Vibes
Here’s where things get optimistic: younger generations are a lot more hopeful. More than half of Gen Z and millennial respondents say they’re either financially comfortable now or well on their way. That’s a sharp contrast to older generations, who tend to be more cautious or skeptical about their financial futures.
Part of that optimism might come from tech-savviness, gig economy flexibility, or simply being earlier in their financial journeys. Either way, the younger crowd seems more focused on building wealth with purpose—not just piling up a high net worth.
Most Households Fall Short, But That’s Okay
While $839,000 sounds manageable in theory, most U.S. households aren’t quite there. The average net worth in America sits around $1.1 million, but that number is heavily skewed by the super-rich. The median (the true middle) is much lower—about $192,700, according to the latest federal data.
But here’s the thing: financial comfort isn’t a fixed number. As Lili Vasileff, a certified financial planner, explains, true comfort means “you’re not living paycheck to paycheck, you have savings, and you’re progressing toward your goals.”
Whether you have $100,000 or $800,000, how you feel about your money—and how well it supports your lifestyle—matters more than hitting some magic number.
A New Definition of Financial Wellness
Robert Brokamp from The Motley Fool offers a clear way to think about comfort using four key questions:
-
Can you manage your daily and monthly expenses?
-
Could you handle a financial emergency?
-
Are you making steady progress toward your goals?
-
Do you have enough freedom to enjoy your life?
If you can say yes to those, congratulations—you’re likely financially comfortable, whether or not your bank account says $839,000.
The Bottom Line
You don’t need $1 million to feel secure. Financial comfort is achievable for many Americans with significantly less. And as definitions shift away from cold hard cash toward peace of mind, health, and happiness, the picture of “having enough” is becoming a lot more personal—and a lot more realistic.
So no, you don’t need seven figures to be comfortable. You just need a plan, a cushion, and a bit of breathing room. And maybe—just maybe—a little less comparison to someone else’s version of “rich.”
