When it comes to wealth, how do you measure up against other Australians? At Teach Me About Property we have a saying, “know your numbers.” It’s important to look at the data – the numbers – and see where you stand. Recent data from a survey by Finder and statistics from the Australian Bureau of Statistics (ABS) sheds light on what it takes to be considered wealthy in Australia today. Let’s break it down.

Savings Statistics

Firstly, a startling statistic: 40% of Australians have less than $1,000 in savings. This means that nearly half of the population is living pay check to pay check, struggling to make ends meet. For many, this is the reality of their financial life—constantly on the edge, with little to no cushion for emergencies. At TMAP, we refer to this as playing “The Poverty Game”.

Wealth Benchmarks in Australia

A recent survey by Finder outlined what it takes to be considered wealthy in Australia. The results are eye-opening:

  • Income: One would need to earn $307,000 annually to be considered wealthy. This figure is significantly higher than the national average and highlights the income disparity in the country.
  • Savings: Wealthy Australians are expected to have $450,000 in their bank accounts. For many, this amount might seem unattainable, especially considering the average savings.
  • Property Equity: Property remains a cornerstone of wealth in Australia. To be in the wealthy bracket, you’d need to have $1.3 million in property equity.
  • Investments: Diversification is key to wealth, with $1.5 million in investments (including crypto, shares, and gold) being the benchmark.
  • Superannuation: Finally, a wealthy Australian is expected to have $1.4 million in superannuation—a crucial component for long-term financial security.

Australian Averages: Where Do You Stand?

Now that we know the benchmarks, how does the average Australian fare? According to the ABS, the numbers tell a different story:

  • Income: The average annual income in Australia is $98,000—far below the wealth benchmark of $307,000.
  • Savings: On average, Australians have $36,340 in savings. This is a far cry from the $450,000 needed to be considered wealthy.
  • Investments: The average person has about $59,710 in investments—much lower than the $1.5 million wealth benchmark.

Reflection: Where Do You Fit In?

With these numbers in mind, it’s time to reflect on where you stand. Are you closer to the average Australian, or do you meet the benchmarks of wealth? It’s a good moment to consider your financial position and think about the steps you might need to take to improve it.

This information isn’t just about comparison; it’s about understanding your financial health and planning for the future. If you’re in the 40% with less than $1,000 in savings, or if you fall short of these benchmarks in other areas, this might be the motivation you need to start saving, investing, or seeking financial advice.

Conclusion: Share the Knowledge

Knowing where you stand financially is the first step towards improvement. Whether you find yourself among the wealthy or closer to the average, understanding these figures is crucial. And don’t keep this knowledge to yourself—share it with friends and family, especially those who might need a financial boost. We all need a little help now and then, and sometimes, just knowing the numbers can make all the difference.

At Teach Me About Property, we believe wealth creation is possible, through informed decision making, and property investment.