𝑨𝑹𝑬 𝒀𝑶𝑼 𝑨 𝑯𝑰𝑮𝑯 𝑵𝑬𝑻 𝑾𝑶𝑹𝑻𝑯 𝑰𝑵𝑫𝑰𝑽𝑰𝑫𝑼𝑨𝑳?

What does it take to be a high net worth individual? According to a Morning Consult survey of 2,200 adults commissioned by Personal Capital, 𝟵𝟭% 𝗼𝗳 𝘁𝗵𝗼𝘀𝗲 𝘀𝘂𝗿𝘃𝗲𝘆𝗲𝗱 𝗵𝗮𝘃𝗲 𝗵𝗲𝗮𝗿𝗱 𝗼𝗳 “𝗻𝗲𝘁 𝘄𝗼𝗿𝘁𝗵,” 𝗯𝘂𝘁 𝗼𝗻𝗹𝘆 𝟯𝟱% 𝗮𝗿𝗲 𝗰𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝘁 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲𝘆 𝗸𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝗶𝘁 𝗺𝗲𝗮𝗻𝘀.

What is net worth?

𝗡𝗲𝘁 𝘄𝗼𝗿𝘁𝗵 𝗶𝘀 𝗮𝗱𝗱𝗶𝗻𝗴 𝘂𝗽 𝗮𝗹𝗹 𝘆𝗼𝘂𝗿 𝗮𝘀𝘀𝗲𝘁𝘀 (𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗰𝗮𝘀𝗵 𝗶𝗻 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀, 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀, 𝗮𝗻𝗱 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗳𝘂𝗻𝗱𝘀) 𝗮𝗻𝗱 𝘀𝘂𝗯𝘁𝗿𝗮𝗰𝘁𝗶𝗻𝗴 𝗶𝘁 𝗯𝘆 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 (𝗶𝗻𝗰𝗹𝘂𝗱𝗶𝗻𝗴 𝗰𝗿𝗲𝗱𝗶𝘁 𝗰𝗮𝗿𝗱 𝗱𝗲𝗯𝘁, 𝘀𝘁𝘂𝗱𝗲𝗻𝘁 𝗹𝗼𝗮𝗻𝘀, 𝗮𝗻𝗱 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲𝘀).

Based upon the survey, there was a wide range of responses for what they’d consider a HNWI; the median average landed at $400,000.

This figure is much lower than the broadly accepted definition of a HNWI: someone with at least $1 million in liquid assets.
In spite of these discrepancies, the vast majority of adults surveyed (74%) didn't think it was particularly likely that they’ll ever become a HNWI themselves. Only 3% say they already were.

Financial advisors must report to the SEC annually how many clients they have who meet the SEC’s HNWI definition. In addition, the SEC has a separate category of HNWIs who are referred to as “accredited investors.” The criteria for this designation is having an annual income of at least $200,000 (or $300,000 for married couples) each of the past two years or a personal net worth of at least $1 million, excluding a primary residence.

The top six factors those surveyed thought are important to achieving a “high” net worth include:

1. Frequently checking in on and tracking their finances (65%)
2. Having a high salary (64%)
3. Having high earning potential from multiple sources (63%)
4. Maintaining a diversified investment portfolio (59%)
5. Being very frugal with spending (57%)
6. Investing in property (55%)

Interestingly, nearly 3 in 10 (29%) think that getting help from family or receiving an inheritance is also important to achieving high net worth.

𝗡𝗼 𝗺𝗮𝘁𝘁𝗲𝗿 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵 𝘆𝗼𝘂 𝗮𝗿𝗲 𝗺𝗮𝗸𝗶𝗻𝗴, 𝗶𝘁 𝗶𝘀 𝗽𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝘁𝗼 𝗿𝗲𝗮𝗰𝗵 𝗮 𝗵𝗶𝗴𝗵𝗲𝗿 𝗻𝗲𝘁 𝘄𝗼𝗿𝘁𝗵 𝗮𝗻𝗱 𝗺𝗼𝗿𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁𝗹𝘆 𝗿𝗲𝗮𝗰𝗵 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝗰𝗲. 𝗧𝗵𝗲 𝗽𝗿𝗼𝗰𝗲𝘀𝘀 𝗶𝘀 𝗻𝗼𝘁 𝗰𝗼𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗲𝗱 𝗯𝘂𝘁 𝘁𝗮𝗸𝗲𝘀 𝗲𝗳𝗳𝗼𝗿𝘁.

By knowing your income and expenses, setting a budget, saving, saving, saving, and diversifying your investments, it is possible to accomplish this goal. There is no get rich quick way to get there, but is possible for anyone.