|One way for a San Franciscan to become wealthy: leave.|
Respondents to the 2022 Modern Wealth Survey said it will take an average net worth of $5.1 million to be considered wealthy in San Francisco in 2022, compared to $3.8 million in 2021 — that’s an increase of 34% in one year, and more than double the national average. In 2020, respondents said it took $4.5 million to feel wealthy in San Francisco. The nationwide average also increased from 2021 to 2022, but by only 15%.Being financially wealthy is subjective. For us it wasn't a specific number. We got there a few years ago when income exceeded expenses and appeared that it would for the foreseeable future, even allowing for emergencies. It helped a lot that we have a middle-class lifestyle and that the house was paid off in 2016.
To be “financially comfortable,” a San Francisco resident would need a net worth of $1.7 million, versus $1.3 million in 2021 and $1.5 million in 2020. Nationwide, respondents said it takes $774,000 to be financially comfortable.
A good chunk of our assets is in the stock market, which has fallen by 21% in the first half of 2022, the worst drop since 1970. We're being squeezed on the other end, as inflation over 8% has caused expenses to rise alarmingly.
I'm beginning to feel nervous....and not so wealthy.