Most millionaires don’t consider themselves rich. So what does it mean to be rich?

By most conventional measures, having a net worth of $1 million should place someone firmly in the “rich” category. However, a growing number of millionaires don’t see it that way.

According to Northwestern Mutual’s 2025 Planning and Progress Study, one-third (36%) of the nation’s wealthiest citizens — those with at least $1 million in investable assets — consider themselves wealthy.

Furthermore, nearly half (49%) of American millionaires say they need to improve their financial planning, with the possibility of outliving their savings, the impact of taxes on retirement, and potential long-term care needs as their top financial concerns.

The gap may be surprising, but it’s how rising costs, longer lifespans, and changing expectations have redefined what it means to feel wealthy in modern America.

Read more: Millionaires in America: How common is it to have a 7-figure net worth?

One of the reasons most millionaires don’t consider themselves rich is that our definition of wealth has changed over time.

“Being a millionaire means you’ve done a really good job and ‘made it,'” said Tom Matthews, CFEd, CPA, and author of “How Money Works.” “Today, it really means you’ve crossed the old line.”

Matthews explained that the problem isn’t that people today have less money, but rather, that they have less certainty and control around their finances. “Things like inflation, rising taxes, market volatility, and the rising cost of housing, health care and education have changed what financial security feels like,” he said. “A million dollars on paper doesn’t stretch the way it used to, especially when most of that net worth is tied up in liquid assets like homes, retirement accounts, or businesses.”

There is also the problem of longevity. With people living longer, a seven-figure portfolio may not be enough when expected to fund decades of living expenses and rising medical costs.

In other words, Matthews said, many people look rich on paper, but that doesn’t mean they feel financially secure.

Read more: What does it mean to be part of the 1%, and how does your net worth compare?

If millionaires don’t feel rich, what does it take to feel rich in today’s economy?

According to Charles Schwab’s 2025 Modern Wealth Survey, Americans need an average net worth of $839,000 to be financially comfortable, and $2.3 million to feel wealthy.

Additionally, 63% of survey respondents think it costs more money to be rich today than last year, citing inflation (73%), a deteriorating economy (62%), and higher taxes (48%) as the top reasons.

Read more: How much money is considered rich?

But experts say feeling rich isn’t just about how much money you have. The key is to achieve true financial security.

“The real takeaway is that wealth is no longer about accumulation, it’s about confidence,” Matthews said. “Confidence comes from education, strategy and structure.” He added that when people understand how money works, they stop guessing or reacting to headlines and start making more informed decisions. “That’s when wealth finally feels like wealth,” he said.

Achieving true financial security is a personal journey; Everyone has their own idea of ​​what that looks like. However, there are financial moves you can make to improve your financial situation and feel more secure.

• Create a clear financial plan: A Northwestern Mutual study found that millionaires are more likely than the average American to report higher levels of financial discipline, confidence and clarity. A clear understanding of your budget, financial goals, and long-term wealth building strategy can help you feel more confident about your future.

• Prioritize paying down debt and saving more: Your net worth is a key indicator of your financial health. And the formula for improving your net worth is pretty simple: Increase what you own (assets) and decrease what you owe (debt). So it is wise to prioritize paying off debt and growing your savings to build a higher net worth over time.

• Seek help from a professional: There is no shame in asking for help. In fact, according to the survey, millionaires are twice as likely to work with a financial advisor than the general public (74% vs. 34%, respectively). Consulting with a professional can help you better understand your finances and create a plan with your specific goals in mind.

Read more: This is the minimum amount of savings you need to improve your financial well-being