How much money do you need to earn to feel rich? With the cost of living rising significantly and interest rates soaring, Australians need far more than their current income. It's probably not surprising to say that.
The average Australian says they need to earn a whopping $345,819 a year to feel wealthy, new research from Finder has revealed. According to the Australian Bureau of Statistics, this is almost five times the average personal income of $72,753.
According to a survey of 1,032 respondents, Millennials felt they needed the most money to feel wealthy at $418,325, followed by Gen Z at $392,077. There is.
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Baby boomers felt the minimum amount needed to be wealthy was $273,812, while Gen Xers needed to earn $307,257 per year to consider themselves wealthy. That's what I was thinking.
Finder Money expert Rebecca Pike said the reality is that only a small percentage of the population actually earns anything close to these numbers.
“However, the last few years have been incredibly tough for many people, and household finances have been stretched to the limit,” Mr Pike said.
“Everything from soaring real estate prices to high utility bills are causing the average person to now feel like they need to earn more to become wealthy.”
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Australians have $37,975 in savings
Finder data found the average Australian has $37,975 in savings, or $705 every month. Despite this, almost half (46%) of Australians say they can live off their savings for less than a month.
Pike encouraged Australians to know exactly where their money is being spent.
“Spend less on things you don't use or no longer need, and spend less on things you need,” she said.
“From energy to insurance to mobile phone providers, compare your options to make sure you're getting the most bang for your buck. If you haven't switched between one of these in the past 6-12 months, you're probably paying less. Too expensive.
“Try to develop habits like putting a certain portion of your income straight into a high-interest savings account and growing it.”
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