Everyone wants to achieve financial comfort, but the amount of money required to reach that goal can vary from person to person. A new survey shows exactly what the average American believes it takes to achieve it -- and if you're falling short, there's a simple way to build a net worth of $1 million or more with a few hundred dollars per month.
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There's a high bar for financial comfort
Earlier this year, Charles Schwab conducted a survey of over 2,000 U.S. adults ages 21 to 75. Participants were asked how much money they believe it takes to be "financially comfortable," and the results were broken down by age range.
Among all participants, the average net worth needed to be considered "financially comfortable" was $839,000. That's up from $778,000 in 2024 and $624,000 in 2021. The answers also varied across generations, with baby boomers having the highest expectations for financial comfort.
| Age Group | Average Net Worth to Be Financially Comfortable in 2025 |
|---|---|
| All Ages | $839,000 |
| Gen Z | $329,000 |
| Millennials | $847,000 |
| Gen X | $783,000 |
| Boomers | $943,000 |
Source: Charles Schwab. Table by author.
The survey also asked participants how likely they thought they were to ever achieve this goal. While 28% said they believed they were already on track to be financially comfortable and another 25% said they could achieve it with some lifestyle changes, 27% said they don't think they'll ever get there.
But it's simpler than you might think to build wealth with the stock market. If you're new to investing or just want a low-maintenance option, exchange-traded funds (ETFs) can be a smart choice.
ETFs are bundles of stocks grouped together into a single investment. With just one share of an ETF, you can own hundreds or even thousands of stocks at once. They make fantastic long-term investments for building significant wealth with minimal effort, and these three choices can help you reach your financial goals.
1. iShares Core S&P 500 ETF
An S&P 500 tracking fund like the iShares Core S&P 500 ETF (IVV +0.56%) aims to replicate the performance of the S&P 500 itself. The fund contains stocks from 500 of the largest U.S.-based companies, many of which are industry leaders and have experienced many decades of consistent growth.
This type of ETF is one of the safer options, making it ideal for risk-averse investors who have plenty of time to let their money grow. It has a flawless track record of surviving periods of volatility, and the extensive diversification within an S&P 500 ETF can also help limit risk.
Historically, the S&P 500 has a compound annual growth rate of 10%. If you were earning a 10% average annual return and had a goal of reaching $1 million in savings, you' would need to invest around $300 per month for 36 years.
2. Schwab U.S. Large-Cap Growth ETF
The Schwab U.S. Large-Cap Growth ETF (SCHG +0.73%) is similar to the S&P 500 ETF in that it only contains large-cap stocks. However, it's somewhat smaller, with only 230 holdings, and it's more focused on stocks that have the most growth potential.
This ETF can be a good fit for those looking for a somewhat safer growth fund. Large-cap stocks in general can be less volatile than smaller stocks, and many of them have a long history of surviving downturns. That said, growth stocks often carry more risk than those from more established companies, so growth ETFs are not quite as surefire as, say, an S&P 500 ETF.
Higher risk can often come with higher reward, however, and this fund has earned an average rate of return of 16.73% per year over the last decade. At that rate, investing $300 per month would add up to just over $1 million after around 25 years.
3. Vanguard Information Technology ETF
The Vanguard Information Technology ETF (VGT +1.02%) has the highest risk of the three ETFs on this list, but it's also the one with the highest potential earnings.
With a focus solely on tech stocks, this ETF has earned explosive returns since its launch in 2004. With new innovations in technology -- particularly artificial intelligence -- the fund could have even more room for growth in the coming years.
NYSEMKT: VGT
Key Data Points
However, because the tech industry can be incredibly volatile, be prepared for more significant short-term ups and downs. This ETF has, historically, been hit much harder than the S&P 500 and other broad-market funds during slumps. If you choose to buy, be sure you're willing to hold your investment for at least a few years and double-check that the rest of your portfolio is well diversified.
Despite its short-term volatility, this ETF has earned an average rate of return of 21.58% per year over the last decade. If it continues earning those types of returns, you could accumulate $1 million by investing $300 per month for around 21 years.
Achieving financial comfort is a goal nearly everyone shares, and while it may seem out of reach for some, investing in the stock market is one of the most effective ways to get there. No matter how much you can afford to invest, small amounts can add up to more than you might think over time.
