By most traditional measures, having a net worth of $1 million should place someone firmly in the “rich” category. However, a growing number of millionaires don’t think so.
According to Northwestern Mutual’s 2025 Planning and Progress Study, only one-third (36%) of America’s wealthiest citizens (those with at least $1 million in investable assets) consider themselves wealthy.
Additionally, nearly half (49%) of U.S. millionaires say their financial planning needs improvement, citing the possibility of running out of savings, the impact of taxes on retirement and potential long-term care needs as their top financial concerns.
The disparity may be surprising, but it highlights how rising costs, longer lifespans and changing expectations have redefined the sense of affluence in modern America.
Read more: America’s Millionaires: How common is it to have a seven-figure net worth?
One of the reasons why most millionaires don’t consider themselves wealthy is that our definition of wealth changes over time.
“Being a millionaire used to mean you were doing really well and ‘making it,'” says Tom Mathews, CFEd, CPA, author of “How Money Works.” “Today, it really just means you’ve crossed an obsolete line.”
Matthews explained that the problem isn’t necessarily that people have less money now, but that they have less certainty and control over their finances. “Factors such as inflation, rising taxes, market volatility and rising housing, health and education costs have changed the perception of financial security,” he said. “A million dollars on paper is no longer as elastic as it once was, especially when much of that net worth is tied to illiquid assets like a home, retirement account or business.”
There is also the issue of longevity. As people live longer, a seven-figure investment portfolio may not seem huge when it’s expected to cover living expenses and rising medical costs for decades.
In other words, many people may look wealthy on paper, but that doesn’t mean they feel financially secure, Matthews said.
Read more: What does it mean to be a member of the 1%? How does your net worth compare?
If millionaires don’t necessarily feel rich, how can one feel rich in today’s economy?
According to Charles Schwab’s 2025 Modern Wealth Survey, the average American needs a net worth of $839,000 to feel financially comfortable and $2.3 million to feel wealthy.
Additionally, 63% of respondents said it takes more money to get rich today compared to last year, citing the impact of inflation (73%), a deteriorating economy (62%) and higher taxes (48%) as top reasons.
Read more: How much does it take to be rich?
But experts say feeling rich is about more than just how much money you have. The key is achieving true financial security.
“The real takeaway is that wealth is no longer about accumulation. It’s about confidence,” Matthews said. “Confidence comes from education, strategy and structure.” When people understand how money works, they stop guessing or reacting to headlines and start making smarter decisions, he added. “That’s when wealth finally starts to feel like wealth,” he said.
Achieving true financial security is a personal journey; everyone has their own idea. However, there are some financial moves you can make to improve your financial situation and feel more secure.
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Create a clear financial plan: Northwestern Mutual research finds that millionaires are more likely to exhibit higher levels of financial discipline, confidence and clarity than the average American. Having a clear understanding of your budget, financial goals, and long-term wealth-building strategies can help you feel more confident about your future.
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Prioritize paying off debt and increasing savings: Your net worth is a key indicator of your financial health. The formula for increasing your net worth is fairly simple: Increase what you own (assets) and decrease what you owe (debts). That’s why it’s smart to prioritize paying down debt and increasing your savings to build a higher net worth over time.
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Seek professional help: There is no shame in asking for help. In fact, according to the survey, millionaires are more than twice as likely as the general public to work with a financial advisor (74% vs. 34%, respectively). Consulting a professional can help you better understand your financial situation and develop a plan based on your specific goals.
Read more: This is the minimum amount of savings you need to improve your financial situation