Here are the obstacles that prevent 89% of Americans from considering themselves wealthy.

• Few Americans — even millionaires — feel confident about their financial standing.
• High costs and home prices and have made it harder to feel rich.

Despite inflation decreasing and wages increasing, many Americans, including millionaires, are not confident about their financial situation.

In August, Fidelity Investments found that 89% of Americans do not consider themselves wealthy, regardless of their income or assets, through a poll of 1,900 adults.

Although many Americans possess considerable wealth, only a small fraction, one-tenth, consider themselves wealthy today, according to Rich Compson, head of wealth solutions at Fidelity Investments.

Holiday costs can be easily afforded by those who can pay off their credit card balances quickly.

Most Americans define wealth as the ability to avoid living paycheck to paycheck, with 71% of respondents agreeing on this definition.

While 57% of respondents believe that wealth involves traveling and taking vacations, 56% believe it's about passing down money to future generations.

Fidelity discovered that nearly half, or 49%, of people believe owning a home is a key factor in feeling wealthy.

High-net worth individuals and those with $1 million or more in savings and investable assets, excluding real estate and retirement funds, have more households associated with wealth and fewer said that not living paycheck to paycheck is a major criterion for feeling wealthy.

Owning a home is considered a sign of wealth by 49% of people.

Obstacles to feeling wealthy

Housing affordability has become a major hurdle.

Many households are unable to afford homeownership due to high home prices, higher mortgage rates, and low inventory.

Since October 2023, when mortgage rates were near 8%, affordability has somewhat improved, according to a new analysis by Freddie Mac.

Despite the increase in vacation costs, Americans remain committed to traveling.

Some reports indicate that travel spending among households is still higher than it was before the pandemic.

High prices are a significant concern for some would-be vacationers, causing them to stay home. Those who are traveling have had to adjust their budgets by spending about 10% more compared to 2023, according to a Deloitte study.

Rising debt is another threat to wealth

A separate report by Edelman Financial Engines found that nearly half of Americans, 44%, consider credit card debt as the biggest obstacle to building wealth, with rising consumer debt weighing heavily on household balance sheets.

The Federal Reserve Bank of New York and TransUnion report that Americans owe a record $1.17 trillion on their credit cards, with the average balance per consumer increasing by 4.8% year over year to $6,329.

High-interest credit card debt is a savings killer, as it consumes more of your income than other types of debt, making it difficult to save and invest, according to Jean Chatzky, a personal finance expert and CEO of HerMoney.com, who shared this insight with CNBC in September.

"People cannot feel wealthier because that hinders their ability to accumulate real wealth," she stated.

What it would take to feel rich

According to Edelman Financial Engines, most people (65%) believe they need $1 million in the bank to be considered wealthy, while 28% require at least $2 million and 19% set the threshold at $5 million or more.

68% of current millionaires believe they need at least $3 million to feel wealthy, while 40% require an additional $5 million.

Over 3,000 adults aged 30 and above were surveyed by Edelman Financial Engines from June 12 to July 3, including 1,500 affluent Americans with household assets between $500,000 and $3 million.

A majority of survey respondents (58%) stated that they require an average salary of $100,000 to alleviate concerns about daily living expenses, while a quarter (25%) indicated that they need to earn more than $200,000 to achieve financial security.

Experts suggest that financial security is not determined by income, but rather by saving more than spending, diversifying investments, and consulting with a financial advisor.

"Education and planning are crucial for building confidence in strategic investing, which sets apart those who feel wealthy from those who don't, according to Fidelity's Compson."