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Shooting for millionaire status in the U.S. is a dream for many, but it turns out even six-figure earners can feel financially unstable if they’re heavily in debt or falling prey to lifestyle inflation.
And that’s according to Visa, which found a growing gap between high income and high net worth, based on their U.S. Economic Insight report from November 2025 (1).
At first, it doesn’t seem all bad.
“Thanks to a booming stock market, strong real estate values and a resilient dollar, every day in 2024 an estimated 1,000 Americans achieved a net worth — defined as the total value of assets minus debts — of $1 million.”
But, according to the report, $1 million no longer makes you “affluent” — defined as being in the top 10% of U.S. households. Now it requires a net worth of at least $1.8 million or an annual income of $210,000.
So, of the 23 million Americans who are millionaires, only 12.2 million are considered affluent.
Of these, 57% are Gen Xers. However, despite accounting for only 12% of affluent households, baby boomers are responsible for 42% of affluent spending. That could be because affluent boomers “control the bulk of their generation’s $85 trillion-plus in wealth,” according to Visa.
Meanwhile, while affluent boomers spend, many Gen Xers are struggling with mortgage and student loan debt while caring for children and aging parents.
The bar to enter the realm of the affluent has risen significantly over the past five years as real estate prices and stock markets rise, putting those who already own homes and stocks at an advantage.
From 2019 to 2023, the income required to be part of this group rose 24% partly due to “the surge in asset prices” for that period, according to Visa. During those four years, the S&P 500 saw a 90% gain (2) while housing prices grew by 35% (3).
The report also noted that “persistent labor shortages — driven by retiring baby boomers and slower immigration — have fueled strong income growth.”
But it’s worth noting that the numbers aren’t uniform across the country. VISA looked at national averages, and the threshold to qualify for affluence and net worth varies widely based on regional purchasing power.
For example, in California, prices were 13% above national averages, meaning you would need an annual income of about $236,000 and a net worth of approximately $2 million to be deemed affluent. On the other hand, prices in Arkansas were 13% lower than the national average, making for an income threshold of $182,000 and a minimum net worth of $1.6 million instead.
So what’s the difference between the two?
A higher income makes it easier to pay the bills, save for the future and maybe afford a few luxuries. But a greater net worth is generally a better measure of financial stability.
A higher net worth can help you better weather life events such as a job loss or health emergency. Once you’ve built up sufficient net worth, you can draw on it for income and free yourself from the need to work.
Think about it like this: Your employment income is a yearly promise, while your net worth is a certainty often tied to assets, not checks deposited in your bank account.
But with the cost of living constantly rising, it becomes harder to grow your net worth. For the 90% of Americans who aren’t affluent, a more realistic milestone might be to simply earn enough to feel comfortable.
Even this level is proving hard to attain, as 77% of Americans don’t feel financially secure and 26% believe they need to make $150,000 to live comfortably (4). That’s more than double the nation’s median annual income of $62,608, based on the U.S. Bureau of Labor Statistics’ 2025 weekly earnings data (5).
Some Americans — including those earning a decent salary — misjudge where they stand financially, believing they’re middle class even though they’re in the top quartile. This could be a result of lifestyle creep, regional differences in cost of living, insufficient savings or failing to capitalize on compound growth.
If you’re trying to improve your finances, you’ll need to increase your income and net worth — or ideally both. If you’re aiming to boost your income, the first step is asking for a raise or to start charting a course towards a promotion.
If you don’t see any potential for higher earnings at your current job, you may want to consider switching jobs or even careers. You could also look into a second job or side hustle.
Net worth is a different matter entirely. It’s typically the result of minimizing debt and maximizing assets, which sounds easy on paper, but can be much harder in practice.
It may seem counterintuitive, but paying off debt is a bit like investing in an asset with the same return as the interest rate you’re paying — at least when it comes to stabilizing your net worth
And as for boosting your assets, it’s worth looking into the type of investments often reserved for the wealthy.
Buying a home has long been a core piece of the American dream, but for the ultra rich, one property is typically just the beginning. According to Forbes, 71% of high-net-worth individuals, with over $2 million in investable assets, are looking to expand their real estate portfolios (6).
For the average retail investor, buying into the real estate market typically involves a down payment on a house or condo. However, not everyone wants to take on a mortgage or commit to 30-years of paying down the principal plus interest.
If a mortgage seems like too much, you can also get into the real estate market with as little as $100.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level.
Their flexible investment amounts and simplified process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part. You also dodge the stress of midnight maintenance calls over burst pipes, clogged drains and broken washing machines.
How it works is simple: Just sign up with your email, and you start by browsing vetted properties, then you simply select a property and choose the number of shares to buy.
When you fund your account with $1,000 or more, you can also earn a 1% reward. Just note that you have to hit this $1,000 minimum within the first 24 hours after completing your first eligible activity to take advantage of this bonus.
You could also take advantage of real estate rentals through fractional ownership in blue-chip rental properties. With mogul, investors get monthly rental income, real-time asset appreciation and tax benefits — without the 3 a.m. tenant calls.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Risk management is an important aspect of wealth generation. Markets can sometimes experience dramatic dips, inflation can spike and diversifying your assets often makes it easier to sleep at night.
But first, make sure to take basic steps like ensuring your car, home and business are properly insured. In many cases, your greatest wealth generator is yourself, so make sure you also have the right health, disability and critical illness insurance.
An additional way to be prepared? By making a solid wealth and income plan.
Being in the top 10% isn’t only for elites — many disciplined middle-class households can get there with time, the power of compounding and expert advice.
According to Northwestern Mutual, wealthy Americans are twice as likely to work with a trusted financial advisor as the general population (7).
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.
