According to the most recent edition of Schwab’s wealth survey, it still takes more millions to be considered wealthy in San Francisco than in other major metropolitan areas, and that amount has significantly grown since last year.
According to survey participants, having a net worth of $5.1 million in 2022 will be deemed wealthy in San Francisco, up from $3.8 million in 2021.
This is a 34 percent gain in only one year and is more than double the national average. Respondents stated that in San Francisco, it takes $4.5 million to feel prosperous back in 2020. The national average likewise rose from 2021 to 2022, although it did so by a much smaller 15%.
A San Francisco resident would require a net worth of $1.7 million as opposed to $1.3 million in 2021 and $1.5 million in 2020 to be financially comfortable. Respondents from throughout the nation reported that $774,000 is needed to be comfortably wealthy.
Residents of major metropolitan areas were asked what amount of personal net worth would be deemed prosperous and financially comfortable in their community. Although the study did not define net worth specifically, it is typically understood to be the sum of a person’s obligations less the value of all of their assets, including their home and mortgage debt.
Out of the 12 metro regions examined, San Francisco respondents’ two average net worth numbers were by far the highest. Respondents in Southern California, which includes the counties of Los Angeles and San Diego, had the second-highest net worth of $3.9 million to be considered wealthy, followed by those in New York with a net worth of $3.4 million. The respondents from Denver reported the lowest sum of $2.3 million.
According to New York respondents, having an average net worth of $1.4 million would be sufficient to be considered financially comfortable. Southern California came in third with an average net worth of $1.3 million. Denver once more had the lowest answer, coming in at $670,000.
The study from the previous year concentrated on how recent global events affected money, priorities, and future planning. The study this year asked questions regarding values at work, investing, and saving.
Only 55% of study respondents felt that their jobs determine who they are, whereas 91% of San Francisco respondents said it was crucial to be happy at work.
94% of respondents said that income and work-life balance are important considerations when seeking a new job. Stock options or equity remuneration at 65% and job title at 57% were of the least significance.
75% of respondents said it was essential to utilize their money for causes they cared about, and 85% said they concurred that personal values were crucial in determining how they handled their money.
In order to make a more beneficial influence on the planet, around three-quarters,74%, of San Franciscans stated they are likely to modify their lives in the upcoming year.