I hit multi-millionaire status but still feel like I need more – is $20 million the true threshold for feeling rich?

$1 million isn’t what it used to be. It’s all you needed 100 years ago to have a luxurious lifestyle, but inflation has reduced the purchasing power of every dollar. Now, $1 million isn’t enough for most people to retire, especially individuals who live in expensive areas.

However, one Redditor took this to the extreme and believes that $7.5 million isn’t enough. The Redditor has accumulated that much money, but now believes $20 million is considered rich. Several Redditors in the Fat FIRE community provided their thoughts and shared what dollar amount is enough to be considered wealthy. 

The Goalposts Move As You Build Wealth

One of the top commenters pointed out that goalposts move as you accumulate more wealth. People who have just reached six figures want to achieve a $1 million net worth. However, once people become millionaires, they want to strive for the next objective. The goalposts stretch to $2 million, $5 million, and higher amounts.

The same commenter who made this observation believes that someone who is worth $30 million won’t view $20 million as rich. Becoming wealthier can cause you to view money differently. You may have different expectations of how much you need to survive financially compared to someone who has a lower net worth than you.

Your Environment Influences How You Feel

It’s easy to feel poor if everyone else is far richer than you. One commenter said that they thought they were doing well until they saw someone make a post about a $90 million exit. In the Fat FIRE community, many people talk about how they intend to manage their 7-figure portfolios and retire early. It can create a distorted sense of wealth since these numbers are far above average.

You can do two things with this information. The first option is to change your environment and spend time with people who aren’t as wealthy as you. Suddenly, you may start to feel rich, but being the smartest person in the room will lead to stagnation. 

The second option is to put yourself in rooms and environments where you are the poorest person in the room. Some people with a $1 million net worth will actively seek communities filled with people who have a $10 million net worth. While those people may make you feel poor, those same people can help you reach new heights in your financial journey. 

Maintain A Basic Level Of Affluence

A high net worth number may not be enough to conclude whether someone is rich or not. One Redditor suggested looking at your quality of life and assessing money’s role.

“I realized a few years back that there was almost nothing that I deeply wanted to own or do that I was unable to own or do because of a lack of money. I decided at that point that I was rich. The change in outlook from chasing big NW numbers to maintaining that basic level of affluence was a real revelation, and I recommend that simple test to everyone.”

It’s good to consider how your life would change if your net worth were doubled. Are you doing anything differently? Do you feel like more purchases and experiences are within reach? Some people’s lives would be changed overnight if their net worth doubled. However, other people wouldn’t even notice. If you would barely notice a surge in your net worth, then you are already rich.

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