The Blubber

Almost a third of millionaires in the US now say they're part of the middle class, per CNBC.

Approximately 60% of investors with investable assets exceeding $1 million classify themselves as upper middle class, according to a recent survey by Ameriprise Financial. Additionally, nearly one-third (31%) of this group identifies as decidedly middle class.

The definition of wealth varies among investors, with many associating it with the ability to live life on their terms, according to Marcy Keckler, Senior Vice President of Financial Advice Strategy at Ameriprise. Rising costs, ranging from child care to grocery bills, have prompted concerns among higher-income individuals. This financial strain has led to reduced savings, with household credit card debt surpassing $1 trillion and a decline in the savings rate, as reported by recent Federal Reserve data. The median household income for homebuyers has increased from $88,000 to $107,000 this year, reaching six figures for the second time in the National Association of Realtors' records.

As mortgage rates exceed 7% and the median home sale price surpasses $430,000, more millionaires and high-income earners are opting to rent instead of pursuing homeownership. Many individuals feel squeezed between higher prices and lower asset values, creating financial challenges. While having $1 million has traditionally been considered a benchmark for financial prosperity, some individuals believe it is insufficient for retirement in the current economic climate.

A study by Bloomberg indicates that 25% of America's "regular rich," defined as those earning at least $175,000 annually, consider themselves "very poor," "poor," or "getting by but things are tight." Nearly 60% of these high earners experience financial stress related to mortgage payments, student loans, and expenses such as daycare and college education. The comfort level with finances can vary depending on the location, as some cities and neighborhoods attract higher-net-worth residents, contributing to elevated costs.

Wealthy professionals are responding by moving away from affluent areas like New York and California to regions with comparable amenities but a more affordable cost of living.