You Might Never Be Part Of The 1%, But There’s More Room In The Top 2%

Regardless of how we might personally feel about the actions of the wealthiest individuals among us, most of us at least occasionally wonder what it would be like to join their ranks.

And while the so-called 1% (those with a net worth greater than 99% of the population) are in an especially rare group, a recent study showed just how much money you’d need to be considered part of the top 2%.

Spoiler alert: It’s still a lot

You’re not going to get there by working a typical 9-to-5 job and sticking some cash in a savings account every payday. The finance-focused publisher Kiplinger crunched the numbers and determined that, by 2025, you’ll need a net worth of at least $2.7 million to enter this elite class.

That sum is unquestionably large, but it’s only about a half million more than the $2.2 million average Americans said in a survey last year they’d need to consider themselves wealthy. And it’s a heck of a lot lower than the $11.6 million you’d need to break through to the 1%.

What does ‘net worth’ mean?

Financial terms can be a little nebulous to many folks, but “net worth” is one that gets used quite a bit. And for the sake of this report, it’s important to understand what it means.

Here’s the equation: Net worth = Assets - Liabilities.

So, in order to find out what your net worth is, you’d need to add up all of your assets (things like investments, real estate, bank account balances, and retirement funds) and subtract your liabilities (which includes credit card debt, unpaid loans, mortgages, etc.)

You don’t need $2.7 million in your bank account to join the 2%, but the solution to the equation above needs to be at least that much.

Chris Agee July 9th, 2024

Share this story: