An Average American Needs $2.2 Million To Be Wealthy — But Grant Cardone Thinks It's Not Enough

In the ever-shifting landscape of American wealth, the benchmark for what constitutes rich has been a topic of perpetual fascination. According to Charles Schwab’s 2023 Modern Wealth Survey, the magic number now stands at $2.2 million in assets. 

However, Grant Cardone, the real estate mogul with a net worth of about $600 million, is here to rain on that parade. He claims that in today's economic landscape, it is inconsequential. 

There's a common misconception that people need over $2 million to feel rich, as the Charles Schwab survey uncovered. In fact, 48% of Americans consider themselves wealthy, with a median net worth of just $560,000. 

Interestingly, over 57% of millennials feel wealthy if their total assets hover just above $530,000. Gen Z'ers require even less, as the survey revealed 46% of young adults feeling rich with a net worth of $414,000. 

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Cardone Disagrees With The Masses

In a world where the term millionaire once conjured visions of affluence and financial security, Cardone, an influential personal finance media personality who manages over $4 billion in total assets, disagrees. 

“A million dollars isn't enough,” he said in his latest book, “The Wealth Creation Formula.” Instead, he sets his sights on a more audacious figure as a benchmark — $10 million.

While the average middle-class American might scoff at such a notion, Cardone’s reasoning is grounded in the harsh realities of modern economics. As life expectancy increases, so too does the length of retirement. With potentially three decades or more to fund, relying on a million could leave retirees struggling to make ends meet.

“Just do the math,” Cardone claims. “You've got a million dollars, you divide that by 35 years, we're talking about $30,000 a year or $2,500 a month.” 

And in a world where the average rent alone can devour a significant chunk of that, the picture of financial security starts to blur.

Cardone’s argument gains further traction when considering inflation. He said, “It's a myth” that a million will suffice in the face of rising costs. To truly thrive, Cardone insists on aiming higher.

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Blanket Of Safety: $10 Million 

Enter the $10 million mark, a figure that Cardone describes as a “very powerful number.” With such a sum, you can afford to weather the storms of financial uncertainty, make strategic investments and have ample room for indulgences.

“The price of a home in 1958 was $46,000. That same home is $460,000 today — "that's 10 times,” Cardone elucidates. “So if a million dollars was what you needed to be rich back then, just connect that.”

As of February 2024, the median home price in the U.S. was $411,887. However, aspiring millionaires might not be willing to settle down for a median starter-family home. 

Approximately 550 cities in the U.S. have an average home value of $1 million as of February 2024, marking an addition of 59 cities to the list, according to a Zillow report. 

While Cardone's analysis might be out of touch with how Americans feel, the skyrocketing cost of living, especially amid the stickier-than-expected inflation backdrop, draws merit. 

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