Comparative Wealth: How Your Sphere Affects Perceptions of Wealth
Wealth is often seen in comparison to others in your sphere. For example, the net worth required to be considered “wealthy” in New York City is likely higher than in Kalamazoo, Michigan.
This disparity is largely due to differences in the cost of living. Living in New York, one of the most expensive cities in the U.S., requires a higher income to afford housing, groceries, transportation, and other essentials. In contrast, Kalamazoo has a much lower cost of living, meaning your money goes further.
It’s essential to understand that wealth is relative and that the amount of money needed to feel wealthy can vary widely depending on where you live, your lifestyle, and your personal financial goals.