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It takes more than $2 million to be wealthy, according to a new survey of everyday Americans. But it takes just a quarter of that figure for them to feel wealthy themselves.

That’s one takeaway from Charles Schwab’s seventh annual modern wealth survey, which polled 1,000 Americans about saving, spending, investing, and wealth.

When asked what amount they considered wealthy, the survey respondents came back with an average of $2.2 million. Yet, among the 48% of Americans who already see themselves as rich, their average net worth was $560,000, survey found.

The results reveal the public’s shifting perception of what being rich means, with many associating wealth with wellbeing rather than simple net worth. But financial planning still plays a role in feeling wealthy, however one defines it, experts said.

Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. He is a wealthy businessman who goes around anonymously at Christmas time, handing $100 bills to people he spies in places such as thrift stores, laundromats, health clinics, assistance centers and shelters. He gives away tens of thousands of dollars each year with no tax benefits. (AP Photo/Nick Ut)

Valerie Daval reacts to receiving a $100 bill from Secret Santa, right, a man from Kansas City who prefers to remain anonymous, at a Salvation Army thrift store in Los Angeles’ Lincoln Heights neighborhood on Friday, Dec. 13, 2013. (AP Photo/Nick Ut)

“People define wealth differently when they’re asked about how to define a dollar amount or when they’re asked what it means to be wealthy,” Rob Williams, managing director of financial planning, retirement income and wealth management at Charles Schwab, told Yahoo Finance. “I think the actionable point that we would suggest is to think carefully about what wealth means to you comprehensively.”

More than 3 in 5 Americans said having a healthy relationship with loved ones is a better way to describe wealth than “having a lot of money.” The survey also found that 40% of Americans mentioned “well-being” when asked about wealth, versus 32% who responded with “money” and 26% who said “assets”.

For instance, when asked to describe what money means to them, 70% of Americans said “enjoying experiences” over “owning nice things.” Also, 69% of Americans chose “having a healthy work-life balance,” while less than half that share — 31% — selected maximizing their earnings. Around 63% chose good health, while 37% chose being successful.

“I think COVID probably caused some of this,” Williams said. “[We’ve] all reevaluated what it means to be healthy, to be wealthy, to be confident about our financial lives, and a little bit more about our current lifestyles.”

Stack of gold coin, money growth and sucess concept

Stack of gold coin, money growth and sucess concept

Some financial planners have observed this change in perception among their clients as well.

“Clients aren’t coming in asking, ‘How do I get one or two million in my portfolio?’. They’re asking, ‘How do I have enough so that working is an option, or so that I can go part time?,'” Kassi Fetters of Artica Financial Services, told Yahoo Finance.

“They’re asking, ‘How do I lower my expenses, so that I can spend time with our new baby instead of working all the time?’. Time and flexibility are considerations that go along with the term wealth now.”

The survey also revealed that only a third of Americans have a financial plan, which Williams said is integral to cultivate the lifestyle that’s most meaningful to them.

“We all feel like we have a plan. You may say, ‘I’ve thought about it, I guess, sure, I plan to retire someday.’ But it’s not very tangible. It’s not written down,” he said. “So that’s like, ‘I want to run a marathon.’ Well, okay, that’s a nice aspiration. What have you documented? What steps are you going to take to get there? [It] takes discipline, takes patience.”

Sean Lovision, a financial planner from WJL Financial Advisors, LLC explained that a detailed financial plan can also make clients “feel wealthy” because it highlights “the long-term sustainability of their portfolio and demonstrates how it can support their desired lifestyle.”

“By showing clients how many years their portfolio can last, the plan quantifies the value of their assets in terms of their longevity and reinforces a sense of financial security,” Lovison said. “This makes the value of the assets seem more ‘real’ and helps clients gain a better understanding of the true worth of their portfolio, helping to foster a feeling of abundance and confidence in their financial future.”

Wes Battle, a financial planner who works with federal employees, said a financial planner can tailor a plan to Americans’ individual needs and desires. For example, a financial plan could help someone balance the goals they want to pursue while also attending to aging parents.

“If we can talk through and build a plan to get them to maximize their own retirement first, and then work on additional savings, they can find peace [and] wealth in the fact that, one, they will not need to rely on someone else in the future, and two, that they are fulfilling a duty that is important to them,” Battle said.

According to the survey, 70% of Americans who came up with a detailed financial plan said they “felt more in control of their finances” and 90% said they felt confident they would “reach their financial goals.”

“Financial planning helps clarify what you want your current and future life to look like and how we’re going to get there,” Fetters said. “I believe that pursuing financial planning is akin to pursuing an intentional life.”

Dylan Croll is a Yahoo Finance reporter.

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