Here's how much money you need to make to join the world's richest 1% (2024)

FAQs

Here's how much money you need to make to join the world's richest 1%? ›

You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.

According to the latest findings from the 18th edition of the Wealth Report by Douglas Elliman and Knight Frank, a person needs $5.8 million to be considered in the wealthiest 1% — a figure that, while substantial, is a far cry from the billionaire benchmark.

You now need a net worth of at least $5.8 million in order to be part of that small but elite group, according to the upcoming 2024 wealth report from Knight Frank. That is a notable 12% increase from the $5.1 million needed just one year ago.

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

The income multiplier levels out at 20, suggesting a net worth of around $13,000,000. This reflects a peak accumulation phase where the focus may shift from earning to preserving wealth.

While inequality declined slightly in 2021 and 2022, as wages increased and housing prices surged, the wealth gap has since crept back to pre-pandemic levels. The top 1% accounted for 30% of the nation's wealth at the end of the fourth quarter, while the top 10% accounted for 67% of all wealth.

In the United States, this number stood at $5.8 million last year. Despite the 1% being considered ultra-rich, Knight Frank remarks that many of the world's 1% are not actually ultra-high-net-worth individuals with assets of over $30 million.

You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.

Overall, to have a top 1% net worth in 2024 requires having at least $13 million according to the Federal Reserve.

How much money is considered rich? ›

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

Upper-middle class: $94,001 – $153,000. Upper class: greater than $153,000.

Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.

Entering the top 1% of earners requires an average annual income of $819,324. In the highest echelon — the top 0.1% — the average income is $3.3 million.

What is the average middle class income? In 2024, a large U.S. city's middle-class income averages between $52,000 and $155,000, with the median household income across all 345 cities at $77,345, making middle-class income limits fall between $51,558 and $154,590, SmartAsset noted.

The most recent data from the Fed's Survey of Consumer Finances took a snapshot of the American public at the end of 2022. At that point, a net worth of $3,795,000 was enough to put you in the top 5% of all American households. If that number has your head spinning, there are some important details you should consider.

In the United States, this number stood at $5.8 million last year. Despite the 1% being considered ultra-rich, Knight Frank remarks that many of the world's 1% are not actually ultra-high-net-worth individuals with assets of over $30 million.

Joining the 1% club

You need $5.8 million to join the 1% in the United States, according to The Wealth Report by Knight Frank. That's based on data from the fourth quarter of 2023. The United States has one of the highest wealth thresholds to join its 1%.

So a similar 1% in India would need to earn net salary of about 49358 * 4.58 = 226082 per month or 27.12 lakhs per annum.