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If crossing the millionaire threshold meant champagne and caviar, most Americans would be popping corks by now. But instead of celebrating, they’re standing in the checkout line doing mental math on eggs, wondering how net worth numbers hit seven figures while their fridge stays suspiciously empty.

According to the Federal Reserve’s 2022 Survey of Consumer Finances, the average household in the U.S. has a net worth of $1.06 million. That sounds impressive — until you realize it’s wildly inflated by a small number of ultra-wealthy households.

The median net worth? Just $192,900.

In other words, half of U.S. households have less than $192K to their name — including the house, the car, the 401(k), and the Honda with 147,000 miles. That gap between average and median is the economic version of a funhouse mirror: the reflection looks rich, but the reality feels pretty cramped.

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Net worth is just your assets minus your liabilities. It’s the value of what you own minus what you owe. According to the Fed, assets include:

Cash (checking, savings, money market)

Investment accounts (IRAs, 401(k)s, stocks, bonds)

Real estate (your home, rental properties)

Vehicles (cars, boats, motorcycles, maybe even a helicopter)

Life insurance and annuities with cash value

Liabilities? That’s your mortgage, car loans, student debt, credit card balances, and other IOUs.

So yes, technically, if you’ve got a paid-off house, a couple of retirement accounts, and no debt, you could easily be in that “millionaire household” bracket — even if you’re still buying store-brand cereal and hoping your tires last another year.

Sure, the Fed says we’re richer on paper. But that paper doesn’t cover groceries.

Housing prices have climbed again. Zillow says the average U.S. home value is now $363,505, up 0.2% in the past year. First-time buyers? Good luck. The average age of a homebuyer is now 56, according to the National Association of Realtors. That’s not a typo. People are buying homes later than ever because prices are outpacing paychecks.

Speaking of sticker shock, Kelley Blue Book reports the average new car now costs $48,039 — nearly the same as the U.S. median income.

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The U.S. Bureau of Labor Statistics says the median weekly wage for full-time workers is $1,196 — or just over $62,000 per year. That’s up from last year, but not enough to keep pace with housing, food, gas, and insurance hikes. Inflation eats up gains like Pac-Man.

And most of that “net worth”? It’s locked up in retirement accounts or home equity — money you can’t exactly spend on rent or ramen this week. Try withdrawing your 401(k) early to buy groceries and you’ll get hit with taxes and penalties. So while it counts on paper, it’s basically Monopoly money in the real world.

The road to that million-dollar mark is long — and often bumpy. Here’s how it typically grows:

In Your 20s: You’re broke but building. Start investing early, even small amounts. Time is your best asset.

30s: Pay off high-interest debt. Don’t let lifestyle creep eat your raises.

40s: Beware of the “I deserve it” trap — expensive vacations, new cars, and that third streaming subscription. Invest more instead.

50s & 60s: Catch-up contributions to retirement accounts can supercharge savings. Also a good time to eliminate lingering debt.

70s & Beyond: It’s not about building anymore — it’s about protecting and withdrawing wisely.

Because wealth inequality makes averages meaningless for most people. While Elon and Jeff Bezos tilt the math, regular families are dealing with shrinking purchasing power, rising costs, and financial stress.

And while a millionaire household might look rich on a spreadsheet, it doesn’t feel rich when the furnace breaks, gas costs $3.23 a gallon and your kid just got accepted to a college that costs more than your annual income.

So yes — Americans are richer on paper. But in the real world? They’re still budgeting gas money and hoping for a decent coupon.

If the numbers on your net worth statement feel disconnected from your day-to-day reality, there are a few ways to close that gap:

Grow your income: A side hustle or second stream of income can give breathing room when wages lag behind prices.

Invest consistently: Max out retirement contributions if possible. Even small amounts compound faster than you think.

Think beyond stocks: Arrived, a platform for fractional shares of real estate, has made it possible for regular investors to dip into property markets without buying a whole house.

Delay Social Security: Waiting a few extra years can boost monthly benefits significantly.

Get expert eyes: Consulting a financial advisor doesn’t have to mean handing over control — even a one-time check-in can help you set strategy and avoid costly mistakes.

Not everyone who’s technically a millionaire feels like one — and that’s okay. Wealth is as much about lifestyle and cash flow as it is about net worth on paper. Most people aren’t at the $1 million mark, but with steady saving, smart investing, and a little outside help, building meaningful wealth isn’t as out of reach as it feels.

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This article The Average American Household Has A $1.06 Million Net Worth — Then Why Do People Still Feel So Broke? originally appeared on Benzinga.com