Types Of Rich People: Understanding The Classification Of Wealthy Individuals

Ever wonder how much money you would need to be considered wealthy? It turns out, Bankers and wealth managers have special classifications for you, depending on how much money you’ve got. Typically, an individual with over $1 million in liquid net worth is considered a High Net Worth Individual (HNWI). At the end of 2018, there were estimated to be just over 14 million millionaires or high-net-worth individuals (HNWIs) in the world.

While having $1 million in liquid assets would make many people happy, being an HNWI is not the pinnacle as far as the financial world is concerned.

Very High Net Worth Individuals (VHNWIs) are defined as someone with less than $30 million but more than $5 million in liquid assets, sometimes referred to as a “pentamillionaires”. And if that’s not enough? Well, then we can go richer.

When “very” just isn’t good enough, you gotta go “ultra.” An ultra-high-net-worth individual (UHNWI) is generally someone with at least $30 million in cash or assets that can easily be converted into cash,  also referred to as the ‘ultra-wealthy.’

Well, there’s only one category above Ultra High Net Worth Individuals. They’re called Billionaires. A billionaire is a person with a net worth of at least $1 billion (US$1,000,000,000, i.e. a thousand million U.S. dollars).

So, the obvious follow-up question is; Where does that leave me? Into which class do I fall?

Super rich or ultra-rich?
Super-wealthy or ultra-wealthy?

Types Of Rich People:

1. Affluent individuals (net worth less than $1 million but more than $100,000)
2. High-net-worth individuals (HNWIs) (net worth: $1 million to $5 million)
3. Very-high-net-worth individuals (VHNWIs) (net worth: $5 million – $30 million)
4. Ultra-high-net-worth individuals (UHNWIs) (net worth: $30 million or more)
5. Billionaires (net worth $1 billion or more)

Understanding The Classification Of Wealthy Individuals

1. Millionaires (net worth $1 million or more)
2. Pentamillionaire (net worth $5 million or more)
3. Decamillionaire (net worth $10 million or more)
4. Billionaires (net worth $1 billion or more)

An individual with a net worth less than $500 million but more than $1 million is considered rich. A super-rich is a person with a net worth of at least $500 million. Typically, an individual with over $1 billion in liquid net worth is considered ultra-rich.

• The Rich (net worth less than $500 million but more than $1 million)
• The Super Rich (net worth $500 million or more)
• The Ultra Rich (net worth $1 billion or more)

Note: For individuals, net worth or wealth refers to an individual’s net economic position, the value of the individual’s assets minus liabilities.