Americans Think A Net Worth Of $778,000 Is The Sweet Spot For Being Financially Comfortable, According To Charles Schwab Survey

Everyone has their own idea of what it takes to be financially comfortable – and it varies based on a lot of factors, like location, lifestyle and the size of your family. But according to Charles Schwab's 2024 Modern Wealth Survey, the general consensus is that a net worth of $778,000 will put most Americans into financial comfort. This survey collected information from 1,000 Americans aged 21-74. 

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So, what does it really mean to be "financially comfortable," and how does that threshold vary across the country? 

Financial comfort is subjective. Individual circumstances and lifestyle preferences come into play here. For some people, it might mean they can travel free of financial stress; for others, having a paid-off mortgage could be a sign of this comfort. Despite individual meanings, the survey suggests that a net worth of $778,000 is the average. 

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The survey also covers what people from different cities feel like it would take to be financially comfortable in their area. For example, in San Francisco – the most expensive city in the survey – people believe they would need a net worth of $1.5 million to achieve financial comfort, nearly double the national average. This is likely due to sky-high housing costs and the general cost of living. 

On the other end of the spectrum, residents in Phoenix and Houston believe that a net worth of $650,000 to $662,000 will leave them secure in their finances. The variability between cities is largely determined by the local real estate markets.

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Here's a look at what it takes to be "financially comfortable" in the 12 major U.S. cities in the survey:

1. San Francisco: $1.5 million
2. Southern California (includes Los Angeles and San Diego): $1.2 million
3. New York City: $994,000
4. Washington, D.C.: $968,000
5. Boston: $903,000
6. Denver: $876,000
7. Chicago: $875,000
8. Seattle: $789,000
9. Atlanta: $781,000
10. Dallas: $724,000
11. Houston: $662,000
12. Phoenix: $650,000 

Beyond financial comfort, the survey also addresses what people think it would take to feel wealthy. The general consensus there is that a net worth of $2.5 million is a good figure to be considered wealthy. In more expensive cities like San Francisco, people believe $4.4 million is the net worth you'd need to feel wealthy. 

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While a net worth of $778,000 might represent comfort for the average American, it's clear that location and personal circumstances make a difference here as well. For those living in more expensive locales, reaching the threshold for financial comfort may take additional planning and resources. 

Being financially comfortable is more than just a number, though; it's about feeling secure in your financial future. If you're looking to change your financial plans or refine your strategy, talking with a financial advisor can help. They offer personalized guidance tailored to your unique financial goals. 

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