A MAP has revealed if you are considered rich based on where you live, after a new report found nine in 10 Brits who make £100k a year don’t consider themselves wealthy.
The new findings from HSBC discovered the majority of earners who rake in six-figure sums each year before tax would not say they are well off.
But the figure varies from region to region, with people in Scotland believing you need to make £330,000 to say you are well off.
Meanwhile, those in North East think if you make £80,000 a year you can class yourself as wealthy.
Residents in the South East of England, which houses the affluent county of Surrey, think you need to make £367,000 after tax to say you are well off.
Overall, the report found the majority of Brits think you need to make £213,000 a year before deductions to class yourself as wealthy.
In April 2024, the average full-time employee in the UK earned £37,430 per year before tax, according to figures from the ONS.
That means the hefty pay packet is nearly six times what the average worker makes in the UK each year.
Vicky Reynal, financial psychotherapist, said: “Anxieties about rising costs, inadequate savings, and the pressure of social comparison create a sense of scarcity, even when objective wealth exists.
“By redefining wealth beyond the bank balance, focusing on our achievements, reducing unhelpful comparisons, and prioritising financial actions within our control, people can move confidently toward the future they aspire to.”
Factors such as hikes to the daily cost of living and wage stagnation have placed pressures on households.
Inflation, which is a measure of how the price of goods and services is rising or falling, hit its highest level in 10 months in January.
The Office for National Statistics (ONS) said the Consumer Price Index (CPI) measured 3% in the 12 months to January.
Meanwhile, rising house prices and utility bills can also make people feel anxious about their finances.
And it appears that Britain’s highest earners are also concerned about their finances.
Research also found that when it comes to financial ambitions among high earners, almost half are aiming for a comfortable retirement.
Some 27% are also looking to prioritise more immediate costs and 11% are looking to tackle insufficient savings.
WAYS TO SAVE CASH
If you are looking to improve your finances or put some money away for a rainy day you could consider getting a fixed-rate savings account.
These types of account pay you a fixed amount of interest on money you put into the account.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
However, some providers give the option to withdraw, but it comes with a hefty fee.
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
