Yahoo Finance How much money it takes for Aussies to feel rich
How much money would you need to earn to feel rich? The average Aussie thinks it's alot.
The average Aussie said they would need to earn significantly more money than the median salary to feel wealthy.
According to a nationally representative survey of 1,081 by Finder, the average Australian would need to earn a whopping $336,516 per year to feel rich.
That’s more than six times greater than the median personal income of $52,338, according to the Australian Bureau of Statistics.
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The research found men felt they would need to earn $347,395, roughly $20,000 more than women, who said they would need to earn $326,929 to consider themselves affluent.
Finder data found the average Aussie saved $645 per month in 2022, and had $30,745 in cash savings.
Despite a higher average, Finder data also found 62 per cent of Aussies had less than $5,000 in savings.
Finder money expert Sarah Megginson said constant craving for more money could be a slippery slope.
“A small number of high-income earners can make average-income figures seem impressive, but remember the typical Australian is on a salary of just over $50,000,” Megginson said.
“It’s easy to get caught up in comparing yourself to others who seem like they have it all – social media can be a significant contributor with people’s ritzy reels constantly on display. Remember true wealth is not just about money. Feeling rich can also be having a sense of satisfaction and contentment in all aspects of your life.”
Different generations feel differently about wealth
The research found Gen Z needed the most money to feel rich by a long shot, coming in at $428,474 per year, compared to $345,785 for Millennials.
Gen X needed the least of the generations to feel wealthy, at $294,705 per year, compared to $306,505 for Baby Boomers.
Megginson said it was important to have financial goals, as long as they were realistic.
“Building wealth doesn’t have to mean earning the most competitive income – the best thing you can do is develop great financial-management skills,” she said.
“Look at how much you earn and what your everyday bills and expenses are so you know how much you can afford to spend on luxuries such as eating out and shopping.”'
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