Your personal definition of wealth may have little to do with how much money is in the bank. You might feel wealthy because you’re able to spend a lot of time with your kids or because you’re pursuing a career you’re passionate about.
But however they’re defining it, the majority of Americans — nearly 60% — believe they’ll never be wealthy, according to a recent LendingTree survey.
The online lending marketplace asked 2,000 adults how they feel about their wealth prospects and found a fair amount of pessimism. Just 20% of adults said they currently feel wealthy.
The majority of adults say wealth is more about having financial security and comfort than hitting a milestone, such as earning a six-figure salary or having a million-dollar net worth, LendingTree found.
Here’s what people think could help them build wealth and what they’re doing to get there.
Is real estate the key to building wealth?
While there may currently be a shortage of homes to buy, there’s no shortage of examples of people who have built significant wealth through investing in real estate, from big names like Barbara Corcoran to smaller-time investors like a couple in Michigan earning $11,000 a month from their properties.
And when asked the best ways to build wealth, real estate was the most popular response, LendingTree found:
- Real estate: 45%
- Stock market: 32%
- Savings bonds: 21%
- Cash: 21%
- Tax-advantaged retirement account: 16%
Not only was it most popular overall, but each generation also said real estate was the key to building wealth. Baby boomers — defined as adults ages 59 to 77 — were slightly more likely than other generations and the general population to name investing in real estate as most crucial for building wealth. They’re also the generation most likely to actually be doing it.
Overall, just 22% of respondents say they currently own a home, but that jumps to 37% of baby boomers, according to LendingTree. Only 14% of all consumers surveyed report investing in real estate…
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