{"id":265423,"date":"2018-08-16T11:10:09","date_gmt":"2018-08-16T09:10:09","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=265423"},"modified":"2018-08-16T11:12:11","modified_gmt":"2018-08-16T09:12:11","slug":"how-much-money-it-takes-to-be-considered-rich","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/265423\/how-much-money-it-takes-to-be-considered-rich\/","title":{"rendered":"How much money it takes to be considered rich"},"content":{"rendered":"

To feel financially comfortable in the United States requires $1.4 million (R20 million), according to a recent survey of 1,000 people by banking and brokerage firm Charles Schwab.<\/p>\n

Moreover, the net amount needed to feel wealthy is an average of $2.4 million (R35 million).<\/p>\n

A number of respondents (18%) defined wealth as being able to afford anything they desired, while 17% cited wealth as being in a “loving relationships with family and friends”.<\/p>\n

The survey asked people to choose which of the below statements came closest to their definition of wealth:<\/p>\n

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When asked what makes a rich daily life, majority of respondents cited ‘spending time with family’ as the most rewarding element.<\/p>\n

Owning a home featured prominently in terms of material elements, as did entertainment in the form of a Netflix or music streaming subscription.<\/p>\n

Nearly half of (49%) of respondents said that saving and investing is the key to wealth, with another 40% choosing ‘hard work’. One in 10 people cited luck.<\/p>\n

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For wealth researchers, the world\u2019s richest are labelled \u2018high net-worth individuals\u2018 (HNWIs), and the barrier for entry into that elite group is $1 million \u2013 which equates to around R14 million at current rates.<\/p>\n

This measure of net wealth is also one of the metrics used by South Africa\u2019s big banks when they look at taking on \u2018rich\u2019 clients.<\/p>\n

The table below outlines the various requirements needed to access private banking in South Africa, as well as an average value based on the numbers.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n
Bank<\/th>\nAnnual salary needed<\/th>\nMonthly salary needed<\/th>\nInvestable assets<\/th>\n<\/tr>\n
FNB Private Wealth<\/td>\nR1 500 000<\/td>\nR125 000<\/td>\nR15 million<\/td>\n<\/tr>\n
Nedbank Private Wealth<\/td>\nR1 500 000<\/td>\nR125 000<\/td>\nR5 million<\/td>\n<\/tr>\n
Standard Bank Signature<\/td>\nR1 100 000<\/td>\nR92 000<\/td>\n\u2013<\/td>\n<\/tr>\n
Investec Private Bank<\/td>\nR800 000<\/td>\nR66 700<\/td>\nR20 million<\/td>\n<\/tr>\n
Absa Exceller<\/td>\nR750 000<\/td>\nR62 500<\/td>\n\u2013<\/td>\n<\/tr>\n
Average<\/strong><\/td>\nR1 130 000<\/strong><\/td>\nR94 100<\/strong><\/td>\nR13 million<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Taking the above into consideration, the value to be considered a HNWI in South Africa is more or less on par with the $1 million used by researchers, in that the average \u2018rich\u2019 person who qualifies for private banking, would either have a monthly salary of R94,000 a month \u2013 or net assets worth R13 million.<\/p>\n

The highest wealth tax bracket in South Africa is 45% of taxable income for earners above R1.5 million annually.<\/p>\n

Career site emolument.com<\/a> conducted a poll among 1,555 professionals in which it asked: How much do you need to feel wealthy?<\/strong><\/p>\n

Country Annual income above which most professionals feel wealthy –<\/p>\n