The 'Poor' Millionaire: Why $2 Million Doesn't Feel Rich Anymore
It sure costs a lot to be poor, but things have gotten so bad out there, these days it costs even more to be poor while being rich.
According to Resume Now's 2026 Cost-of-Living Crunch Report, only 17% of Americans reported that they can comfortably cover their essentials and still save money. With 92% admitting that they had to cut back on spending on essentials such as groceries and healthcare in 2025 to get by, it's undeniable that the perception of what was once considered rich has changed.
Historically, having a million dollars may have felt like you had made it and you could live a lavish lifestyle; but, in today's economy, that isn't the case.
We consulted financial experts to understand why a $2 million net worth isn't enough to feel rich anymore.
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Everything Costs More Due to Inflation
Chad Gammon -- a certified financial planner (CFP), enrolled agent (EA) and the owner of Custom Fit Financial -- noted that a $2 million net worth is quite an accomplishment, but it's easy to feel like you're not rich due to inflation.
"It's tough with increases in insurance and healthcare costs that typically make soon-to-be or recent retirees rethink their wealth," he said.
If you're close to retirement or considering leaving your job, you may not feel $2 million is sufficient, given the rising costs of necessary expenses that could leave you feeling stressed out.
Arie Brish -- a professor at the Bill Munday School of Business at St. Edwards University in Austin, Texas -- said it's very challenging to determine what will be considered rich enough in the future.
"Let's assume 3% inflation," he said. "This $2 million will have a buying power equivalent of $1.5 million in 10 years and $1 million in 25 years."
Most of Your Wealth Might Be Tied Up in Real Estate
Gammon emphasized that your net worth can be tied up in home equity as prices sit near record highs. He said some of the funds may be accessible, but most would be illiquid.
For example, you could have a net worth of $2 million, but half of that value may be tied up in your home. If another $500,000 or so is tied up in retirement accounts, you might have access to only a quarter of the $2 million.
When a significant part of your net worth is tied up in real estate, it blocks cash flow to help out with your bills. You may incur additional expenses, such as home insurance, property taxes and maintenance, that are tied to its value, but all the money to pay them is stuck in the property itself. Since you may not want to sell your home, you won't have access to this net worth.
The Amount Isn't Enough To Quit Working
"Even if this $2 million is all invested in cash flow-generating assets, assuming 5% return, it will pay you $100,000 per year," Brish said, pointing out that this isn't good enough for most people to leave their jobs.
While having a few million saved will provide financial security, you won't feel rich because you still have to work. You may even feel stuck in a job you don't care for or in a home you struggle to keep up with the expenses on.
You're Not Provided With Financial Security in Your Golden Years
"A $2 million net worth is no longer viewed as 'wealthy' because it no longer provides an adequate level of financial safety and security from the major late-life risks, including the likely need for long-term care (compounded by increasing longevity) and inflation," said Evan H. Farr, a financial planner and a certified elder law attorney.
He attributes increased longevity to the change in what people view as an adequate amount of money, since nursing home costs and expenses in retirement can add up quickly. With both on the rise, $2 million can be spent quickly on long-term care. A big expense early on eats into years of future growth.
Health Advancements Are Helping People Live Longer
Even if you're lucky enough to live independently with minimal healthcare costs, statistically speaking, your savings must stretch longer than your parents' did.
"We have health advancements that might make retirement last longer than ever before, and people are planning 30- to 40-year retirements," Gammon said. "The longer the retirement, the more uncertainty can occur with a nest egg of $2 million."
If you plan on retiring soon, having $2 million may not feel like enough, since it's unclear how long you're going to need these savings to get by.
"A $2 million portfolio that was enormous decades ago must now support decades of living expenses, increased healthcare costs, Medicare gaps, higher insurance premiums and the strong likelihood that one or both spouses (if married) will need multiple years of long-term care," Farr said.
If you are in your 60s and have a few million saved, you need to plan for another 30 years of life. This would require you to have a much higher financial buffer to feel financially comfortable.
The Perception of Being Rich Has Changed
Farr said the perception of being wealthy has changed because it used to mean someone could make high-end lifestyle choices and still maintain financial security for the rest of their life.
"For many families today, $2 million is perceived as a buffer, a protective cushion against financial loss due to a single extended care event," he said.
While it's not a significant amount of money, he said it's no longer a hallmark of wealth, as the funds can quickly disappear.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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