How Much Money Makes Someone Truly Wealthy
What's the threshold for wealth? How much money does someone need to be considered rich?
The answer depends on the location where they live, according to the Greek magazine Money Review. To enter the top 1% of the wealthiest in Monaco, a person's wealth must reach eight-figure levels.
According to data from the international real estate agency Knight Frank, the threshold for someone to enter the top 1% of the wealthiest people in Monaco is $12.4 million. Significantly lower but still high is the "threshold" for the top 1% of the wealthiest in Switzerland ($6.6 million) and Australia ($5.5 million). In the United States, it takes $5.1 million to join the club of the truly wealthy.
Photo Credit: Pixabay
Who Can Be Considered Wealthy?
According to Bloomberg, the data confirms that the pandemic and the rising cost of living have widened the gap between rich and poor countries. To enter the top 1% in Monaco, one needs wealth at least 200 times larger than the mere $57,000 required to be considered wealthy in the Philippines.
Low-income households around the world feel the burden of inflation, as they are forced to spend more of their available income to meet their food and housing needs. On the other hand, the richest 500 people in the world have increased their total wealth by nearly $600 billion this year, according to the Bloomberg Billionaires Index, with the largest gain being recorded by Meta CEO and Facebook creator Mark Zuckerberg.
"The growing international inequality could put this category in focus, especially with the idea of higher taxation on their assets and even emissions," notes Flora Harley of Knight Frank.
Additionally, a chief economist of a well-known European bank once stated that "the individual's physical disappearance irreparably separates them from their accumulated wealth. Therefore, one could say that overall health is also a form of wealth necessary for accumulating/managing material wealth."