Prof G says high-earners in blue cities like NYC, San Francisco can make $1 million annually — but he still deems them as the ‘poor rich.’ Here’s what wealth in America really means

However, he believes these ultra-high earners are generally living in urban centers in blue cities like New York City or San Francisco where the taxes are relatively high.

“You might be paying over 50% in taxes,” he said on The Prof G Pod. “Then you roll in the expenses of living in those cities. A lot of these people I would deem as the ‘poor rich.’”

Considering one’s income and living expenses, here’s what it means to be genuinely wealthy in America.

Genuine wealth

Income isn’t necessarily an adequate measure of prosperity because it simply indicates how much you make, not how much you keep.

A six- or seven-figure income is a valid accomplishment, but after taxes, debt servicing and lifestyle expenses, many high-earners are left with little to no savings.

For instance, U.S. physicians can earn an income of roughly two or three hundred thousand per year, but since medical student debt is $200,000 on average, according to the American Medical Association, some of these professionals may struggle to create wealth unless they qualify for loan forgiveness or repayment.

In fact, 36% of individuals who earned more than $200,000 in 2024 said they were living paycheck-to-paycheck, according to a PYMNTS survey. This is why income offers an incomplete picture of your personal finances.

Savings accounts, according to Galloway, are a much better way of measuring financial success. Savings and investments can generate passive cash flow, providing a genuine safety net for retirement. Owning a million-dollar house or stock portfolio that generates $50,000 in passive income can make you more financially stable than earning $1 million but saving nothing.

Fortunately, you don’t need to make a seven-figure salary to start saving money and creating wealth.

As Galloway puts it, "Wealth isn't about how much you make, it’s about how much you save.”

How to create wealth regardless of income

A disciplined and consistent savings plan can help you create wealth regardless of income.

Galloway suggests buying a home as a “forced savings plan,” maxing out tax-advantaged accounts like the workplace 401(k) and investing in low-cost index funds to accumulate capital.

“Don’t delude yourself and think you can pick stocks better than anyone else,” said the professor. “You can’t. You want to find someone great at it who’s really cheap, that’s called an index fund or an ETF.”