Once You Achieve This Wealth Threshold, You're Officially In The Top 1%

What it meant to be "wealthy" meant something different to older generations, when what qualified you to be a member of the 1% was much less than is required today. In fact, there was once a time when having a net worth of $1 million meant that you had a vast fortune and could live out your days lounging by the pool with a drink in hand, living the good life that everyone dreams of. But the sad truth is that those days are long gone. Today, what it takes to be considered of the elite, the top 1%, is very different.

As it turns out, there is actually a number that qualifies you to tout the "1%" title, and it is quite high. $13.5 million high, to be exact, according to the experts at Benziga. This may not seem like a lot when you consider the fortunes of America's 400 wealthiest individuals, compiled by Forbes for 2024. Big names like Elon Musk, with a net worth of $224 billion, and Jeff Bezos, with a net worth of $197 billion, topped the list. Even the names at the bottom of the list were massively wealthy, with the poorest person on the list having a net worth of $3.3 billion. With the 400 wealthiest in the country having such high net worths, it may seem unlikely that $13.5 million would put you into the top 1%, but what that fact shows us is that wealth in America is not very equally distributed, even among the wealthy.

There are a couple of ways to be considered wealthy, and they depend on where your values lie. Apart from the existential concept of "happiness" and the indicator of physiological wealth, "health," most people look toward their bank account to measure their wealth through either the amount of their paychecks or the number written on the balance line of their account statements. But to be in the top 1%, we are looking at your overall wealth, meaning your account balances, assets, and investment holdings.

Income, while a strong indicator of your financial capacity for wealth, is not the ultimate determinator of overall wealth as your income is somewhat relative. For example, if you have a great deal of debt, much of your income will likely go toward paying off that debt rather than accumulating in a bank account or investment. Similarly, if you are a big spender, as opposed to a big saver, that income is likely to come and go through your bank account rather than help grow your bottom line.

What this boils down to is that the top 1%, while also likely bringing in large paychecks, have verifiable assets that equate to a minimum of $13.5 million or greater, and don't have debts that threaten to significantly impact this overall accumulated wealth. While many strive to be in the top 1%, (and really, who wouldn't?) many more are likely to find themselves in the top 10%.

If there is something wealthy people are very good at, it is protecting their net worth and becoming wealthier. But it isn't just the wealthy who can accomplish this. If you have a goal of attaining that elusive 1% status, take the time to figure out what steps might work for you to get there. That may be eliminating debt — which you should do anyway, since debt will only prevent you from attaining financial freedom and living the life you want now and in retirement (American household debt reached a massive high of $17.5 trillion at the end of 2023, according to Consumer Affairs), increasing your salary, or earning additional money through investments or passive income strategies.

Budgeting and planning are integral steps to achieving financial success, whether that means qualifying for the 1% or the 10%. Financial success for you could even mean paying off your debt, owning a home, having money saved for retirement, or even something as simple as being able to pay your bills. Whatever your goals, achieving them is possible with the right mindset and the right tools to get the job done. Working with a financial planner is a great start as these financial professionals can help you with developing a plan to address a variety of concerns from budgeting and debt management to investing and retirement planning.