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For a long time, becoming a millionaire was equivalent to being rich enough to do just about anything.“The word 'millionaire' once implied automatic affluence,” says Ashton Lawrence, an adviser at Mariner Wealth Advisors in Greenville, South Carolina.“The goalposts have shifted. It's still a meaningful milestone, but for most people it's no longer enough.” (1)

In 2025, many high-net-worth Americans say they don't feel wealthy, despite having seven-figure net worths.

That's according to a recent survey from Northwestern Mutual that found that just one-third of American millionaires consider themselves 'wealthy.' And 48% of American millionaires believe that their financial plans need improvement. (2)

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With millions of Americans becoming millionaires, more households are coming to the startling realization that a million dollar net worth isn't what it used to be. In fact, the number of American millionaires has reached a record 24 million people, according to a recent Bloomberg report, (3) with 379,000 new millionaires added in 2024 alone, according to a UBS study. (4)

Here's why those who have reached millionaire status may not feel wealthy, and what they can do to free up some cash.

Why many millionaires don't feel wealthy

While hitting a million-dollar net worth is an impressive threshold, many newly minted millionaires aren't popping the champagne just yet. Rising costs, lifestyle creep and the fact that many millionaires have their net worth tied up in relatively inaccessible assets culminate in the unsettling reality that many American millionaires don't feel financially secure.

For starters, many millionaires don't feel 'rich' because $1 million isn't worth what it used to be - $1 million today is worth what around $531,000 was worth in 2000. If you look back another 20 years, to 1980, $1 million in 2025 dollars would be worth around $254,000. (5)

But even with persistent inflation chipping away at the value of the dollar, that isn't the only reason many millionaires are feeling stretched financially. For example, many have at least some of their net worth locked up in assets like a home or 401(k) account, which means they cannot easily access the funds to spend on anything right now.

An Empower report found that 95% of American millionaires own their own homes. (6) With that, many likely have home equity values bumping up their net worth. But since they cannot tap into their home value like a piggy bank, this value might not feel real.

Likewise, millionaires with lots of money invested in a 401(k) might be set up for an amazing future. But, generally, you can't access the funds within a 401(k) until age 59.5 without a penalty, putting a barrier between many millionaires and their money. For example, the approximately 537,000 401(k)-created millionaires in 2024, based on Fidelity records, won't necessarily have penalty-free access to that money until they turn 59.5. (7)

Beyond the lack of access and the simple fact of inflation, lifestyle creep could explain why some American millionaires' finances can feel tight. Essentially, lifestyle creep involves increasing spending as your income increases.

Presumably, some millionaires still feel stretched because they have increased their expenses, leaving them stuck in a paycheck to paycheck-style cycle. If you think it's impossible to live paycheck to paycheck with $1 million, the data says it is. Even 40% workers earning more than $500,000 per year report living paycheck to paycheck, according to a recent report from Goldman Sachs. (8)

Ultimately, if cash is tied up in assets and inflation eats away at the value of your dollars, even millionaires might not have enough cash flow to feel wealthy.

Read more: I'm almost 50 and have nothing saved for retirement - what now? Don't panic. These 6 easy steps can help you turn things around

How millionaires can free up cash without selling assets

Reaching $1 million in net worth is a meaningful financial milestone, but if too much of that wealth is tied up in illiquid assets, even high earners can feel strapped. Instead of liquidating everything, millionaires can work with a financial professional to rebalance their portfolios with liquidity in mind.

One option is to shift part of your investment strategy toward income-producing assets - such as dividend-paying stocks, municipal bonds or rental real estate - to create a steady cash stream without drawing down principal. If retirement accounts are fully funded, reallocating a portion of new contributions into a taxable brokerage account can also make near-term money more accessible.

For homeowners with significant equity, tools like a home equity line of credit can provide strategic liquidity without forcing a sale. And for some, downsizing or relocating to a lower-cost market can unlock substantial cash while reducing ongoing expenses.

Ultimately, freeing up cash is less about abandoning long-term goals and more about adjusting your strategy so that your wealth supports your quality of life now - not just decades from now.

Becoming a millionaire today is a powerful financial achievement - but if it no longer guarantees ease or flexibility, reassessing where your money lives and how easily they can use it can open up more cash flow. For many millionaires, the challenge isn't reaching seven figures - it's structuring those assets so they can actually be used.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Bloomberg (1 ); Northwestern Mutual (2 ); Bloomberg (3 ); UBS (4 ); In2013Dollars (5 ); Empower (6 ); PSCA (7 ); Goldman Sachs (8 )

This article originally appeared on Moneywise under the title: More Americans than ever are worth $1M - but many still feel broke. Why being a millionaire doesn't cut it anymore

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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