Many in America's top 10% still feel ‘very poor' - 3 tips to create real wealth with the income you have

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What does it really mean to be wealthy? At what point — specifically, at what income level — does one cross into 'rich' territory?
According to Bloomberg, an annual income of $175,000 a year places you in the top 10% of tax filers, signifying you're statistically wealthy.
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But in their 2023 survey, 25% of those earning that much or more described themselves as 'very poor', 'poor', or 'getting by, but things are tight.' Half said they're just 'comfortable', at best.
It's true that everything from cars to condos are costlier than ever before. But even with those costs accounted for, the question remains: Are Americans underestimating their real net worth
Warren Buffett thinks so. In a 2022 interview with Charlie Rose, the Berkshire billionaire tried to put things in perspective for modern Americans.
'You live in a new environment where the bottom 2% in terms of income in the United States, the bottom 5% … The top 1% all live better than John D Rockefeller was living when I was six years old. … And today, you can get better medicine, better education, better entertainment, and better transportation.'
And Rockefeller was at one point the richest man in the world. Here are a few key things to remember as you work toward your wealth goals.
According to a recent survey from Bank of America, individuals aged 21 to 43 with at least $3 million in assets only have 25% of their portfolio invested in stocks.
It is worth noting that 93% of these rich, young Americans say they plan to allocate more of their portfolio to alternatives in the next few years, according to the survey.
So, what alternative investments are capturing the interest of these young millionaires?
The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it.
Investing in gold is often considered the go-to inflation-fighting move. It can't be printed out of thin air like fiat money, and its value is largely unaffected by economic events around the world.
And because of the precious metal's safe-haven status, investors often rush toward it in times of crisis, making it a potentially effective hedge.
These days, you don't even have to go to a bullion shop to buy precious metals. Plenty of online platforms offer a wide selection of gold and silver bars and coins and fair pricing.
Additionally, you can combine the recession-resistant nature of gold with the tax benefits of an IRA by opening a gold IRA.
It's not surprising that so many Americans struggle to understand what their financial standing really is. A 2025 study conducted by web data collection firm Soax found that 73% of Americans use some form of social media.
Why is that important?
Aside from an array of finance influencers who all have varying opinions on the best way to create wealth, social media also inherently lends itself to comparisons. but remember: Nobody's showingtheir mortgages or debts on Facebook and Instagram. Instead, they're just sharing five-star vacations and ritzy nights out.
This is why professional financial advisors play a crucial role in helping you understand your actual financial position and plans for the future. With the help of a qualified professional, like those you can find through Advisor.com, you can find out where you really stand.
Advisor.com is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals by matching you with a small list of the best options for you to choose from. From their database of thousands, you get a pre-screened financial advisor you can trust. You can then set up a free, no-obligation consultation to see if they're the right fit for you.
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Social media also fuels FOMO (fear of missing out), especially as more people boast about their investment returns or sudden financial 'wins.' Watching influencers and celebrities claim they've doubled or tripled their money overnight can easily lead to unrealistic expectations.
But getting investment information from reliable, expert sources (not from social media) is crucial.
When asked what he did to learn about the stock market, Buffett told Berkshire shareholders last year that he did a lot of reading.
'The answer would be, in my particular case, it would be going through the 20,000 pages [of Moody's Manual],' Buffett said.
Moody's Manual was a series of publications by financial services company Moody's on publicly traded stocks. These texts provided detailed information on various industries, companies and securities.
Americans who are constantly checking up on their wealth or investment portfolio might also be incorrectly believing they're worse off than they are.
Buffett has always preached about investing for the long-term and exercising patience.
And he has long championed a straightforward way for everyday investors to put this principle into action — no stock-picking skills required.
'In my view, for most people, the best thing to do is own the S&P 500 index fund,' he once famously stated. This approach gives investors exposure to 500 of America's largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time, and some apps even let you invest in an S&P 500 ETF with your spare change, making it easier than ever to build wealth alongside the world's financial elite.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.