Bay Area residents say they need $1.3 million to be financially comfortable
An online survey conducted by Charles Schwab, the leading provider of financial services, has revealed interesting data about Bay Area residents on what they consider to be wealthy for those living in this blessed but very expensive part of the country.
They conducted the survey on Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, and Solano between February 2 to February 19, 2021 where they interviewed 750 Bay Area residents aged 21 to 75 . According to the results provided, Bay Area residents feel they need an average net worth of $3.8 million to be “wealthy”, $1.8 million for “financial happiness”, and an average of $1.3 million to feel you are “financially comfortable”.
Main cities such as Los Angeles, New York and Washington, D.C. ranked behind the Bay Area. In these cities to be "financially comfortable", the average net worth is $1.2 million.
Bay Area residents also feel optimistic about the future now that in cities like San Francisco 75% of residents have received at least one dose of the vaccine. Almost half of those contacted (46%) said they are confident they will be able to have the same lifestyle they did before the pandemic, with an overwhelming majority eager to travel (53%), socialize (36%) and eating out at high-end restaurants (20%).
As for Americans in other parts of the country, they believe that it takes an average $1.9 million in personal net worth to be considered “wealthy” in 2021, which is more than double the actual average net worth of U.S. households.
60 percent of those surveyed felt optimistic about the U.S. stock market, and more than half feel positive about the U.S. job market, economy and role as a global economic power. This newly found optimism after the pandemic, has a lot to do with the COVID-19 restrictions lifting across the country.
Charles Schwab senior executive vice president and head of Investor Services Jonathan Craig, said via statement;
While COVID-19 upended nearly every corner of American life, many are starting to see the light at the end of the tunnel and are ready for a reset. They plan to prioritize experiences and treat themselves after living constrained lives amid restrictions, quarantines and illnesses. But we’re also seeing a healthy balance – even as many people are eager to get out to spend, they also want to nurture newfound, healthy savings and investing habits developed over the last year, and it seems that will be an ongoing marker of this next chapter.
Other interesting data the survey shows is that as a result of the pandemic and the financial and emotional stress it imposed on Americans, more than two-thirds (68 percent) of Americans have reprioritized what matters most to them, with 69 percent saying mental health is more important than it was before, followed closely by relationships (57 percent), financial health (54 percent) and physical health (39 percent).