A study by Northwestern Mutual found that only 36% of U.S. millionaires consider themselves “wealthy” despite having at least $1 million in assets. Rising costs, shifting norms, and social comparisons have reshaped the meaning of “rich” even for those who technically qualify.

The U.S. now boasts nearly 24 million millionaires, the most high-net-worth households globally. Wealth creation surged during the pandemic with rising home prices and more Americans investing in stocks. However, a million dollars may not feel wealthy depending on location, lifestyle expectations, and constant comparison with others.

Even with more Americans reaching millionaire status, many don’t feel wealthy due to the “comparison trap.” Lifestyle inflation, pressure to save for various expenses, and financial insecurity persist. Experts suggest redefining financial comfort based on expenses, not net worth, and avoiding lifestyle creep while consistently investing early for compound growth.

To achieve financial comfort, set a “financial freedom number” based on expenses, not net worth, and avoid lifestyle inflation. Early and consistent investing is key, as is realistic long-term planning for retirement, life expectancy, and healthcare costs. Financial targets should reflect the life you want, not comparison with others.

Sources: Northwestern Mutual, UBS Global Wealth Report, Hendershott Wealth, USA Today, Economic Policy Institute, Forbes, HonestMoney.

Read more at Yahoo Finance: Only 36% of millionaires felt wealthy last year. If $1M isn’t enough, how much money does it take to feel rich now?