For many Americans, the definition of what it means to be well off is relatively modest

89% of Americans say they do not consider themselves wealthy — here's what stands in the way And yet, only one-tenth of Americans consider themselves wealthy today

For many Americans, the definition of what it means to be well off is relatively modest

Inflation is cooling and wages are rising. Yet, few Americans — including millionaires — feel confident about their financial standing.

Across all income and asset levels, 89% of Americans said they do not consider themselves wealthy, according to Fidelity Investments' State of Wealth Mobility study. Fidelity polled 1,900 adults in August.

"Only one-tenth of Americans consider themselves wealthy today — despite many having considerable wealth," said Rich Compson, head of wealth solutions at Fidelity Investments.

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For most Americans, the definition of what it means to be wealthy is relatively modest, with 71% saying being wealthy is simply the ability to not have to live paycheck to paycheck.

Roughly 57% said wealth also entails traveling and taking vacations, while 56% said it's being able to pass down money to the next generation.

Nearly half — 49% — said feeling wealthy meant the ability to own a home, Fidelity found.

For high-net worth individuals, or those with $1 million or more in savings and investable assets not including real estate or retirement funds, more households associated wealth with traveling and fewer said a major criterion for feeling wealthy was not living paycheck to paycheck.

Surprisingly, the same share — 49% — said being wealthy meant owning a home.

Obstacles to feeling wealthy

Housing affordability has become a major hurdle.

High home prices and higher mortgage rates along with low inventory have put ownership just out of reach for many households.

One "silver lining" is that affordability has improved somewhat since October 2023, when mortgage rates were near 8%, according to a new analysis by Freddie Mac.

Although vacationing has also gotten more expensive, Americans are still determined to travel.

Travel spending among households continues to outpace its pre-pandemic levels, some reports show.

However, concerns about high prices are playing a larger role in keeping some would-be vacationers home. Those that are travelling have had to adjust their budgets accordingly, spending roughly 10% more compared to 2023, according to another study by Deloitte.

Rising debt is another threat to wealth

At the same time, rising consumer debt has weighed on household balance sheets. Nearly half, 44%, of Americans said credit card debt is the biggest threat to their ability to build wealth, according to a separate report by Edelman Financial Engines.

Americans now owe a record $1.17 trillion on their credit cards, and the average balance per consumer stands at $6,329, up 4.8% year over year, according to the Federal Reserve Bank of New York and TransUnion, respectively.

"High interest rate credit card debt, more than other sorts of debt, is a savings killer, because when you have it, you have to feed the beast. You can't save, you can't invest," Jean Chatzky, personal finance expert and CEO of HerMoney.com, told CNBC in September.

"That stands in the way of people building actual wealth and therefore feeling wealthier," she said.

What it would take to feel rich

Most people — roughly 65% of those polled — said they would need $1 million in the bank to consider themselves wealthy, although 28% said it would take at least $2 million and 19% put the bar at $5 million or more, Edelman Financial Engines found.

Among current millionaires, 68% said they would need at least $3 million and 40% said feeling wealthy would require $5 million of more.

Edelman Financial Engines polled more than 3,000 adults over age 30 from June 12 to July 3, including 1,500 affluent Americans with household assets between $500,000 and $3 million.

When it comes to their salary, 58% of all of those surveyed said they would need to earn $100,000 on average to not worry about everyday living expenses, and a quarter said they would need to earn more than $200,000 to feel financially secure.

In most cases, feeling financially secure is not based on how much you earn, but rather a commitment to save more than you spend, maintain a well-diversified portfolio and work with a financial advisor, experts often say.

"Having confidence in being able to invest strategically is what often separates those who feel they are wealthy from those who don't," said Fidelity's Compson. "Improved confidence starts with education and planning."

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This story originally appeared on: CNBC - Author:Jessica Dickler