What is the difference between rich and wealthy?

There’s no official difference, and plenty of people use the two words for the same thing. When people do separate them, rich usually means a high income or visible spending. Wealthy means owning enough assets that the money keeps coming without a paycheck.

Net worth measures wealth. Someone who earns $500,000 a year and spends all of it has a rich person’s income and a small net worth. A retired couple with $2.3 million in investments can draw about $92,000 a year at a 4% withdrawal rate with no salary at all.

In Charles Schwab’s 2025 Modern Wealth Survey, Americans said it takes an average net worth of $2.3 million to be considered wealthy and $839,000 to be financially comfortable. About 11% of U.S. households have $2.3 million or more, by our calculation from the Federal Reserve’s 2025 data.

See all 8 net worth levels in what net worth is considered rich.