Yahoo Finance The salary you need to be ‘rich’ in 2024
Aussies would need to earn nearly five times the average amount to feel rich.
How much money do you need to earn to feel rich? With the cost of living biting and interest rates soaring, it’s perhaps unsurprising that Aussies say they need much, much more than what they are currently earning.
The average Aussie said they would need to earn a whopping $345,819 per year in order to feel rich, a new survey by Finder found. That’s almost five times greater than the average personal income of $72,753, according to the Australian Bureau of Statistics.
Millennials felt they’d need the most money to feel rich at $418,325, the survey of 1,032 respondents found, followed by Gen Z at $392,077.
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Baby Boomers felt they needed to earn the lowest amount to be wealthy at $273,812, while Gen X thought they needed to earn $307,257 per year to consider themselves affluent.
Finder money expert Rebecca Pike said the reality was only a small percentage of the population actually earned anywhere near these figures.
“That said, it’s been an incredibly tough couple of years for many, with household budgets pushed to the limit,” Pike said.
“With everything from soaring property prices to expensive energy bills, the average person now feels they need to earn a whole lot more to be wealthy.”
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Aussies have $37,975 in savings
Finder data found the average Aussie had $37,975 in savings and was saving $705 each month. Despite this, nearly half of Aussies (46 per cent) said they could only live off their savings for one month or less.
Pike recommended Aussies take stock of exactly where their money was going.
“Cut spending on anything you aren’t using or no longer need, and don’t pay too much for what you do need,” she said.
“From energy to insurance to your mobile provider, compare your options to ensure you’re getting the best bang for your buck. If you haven’t switched any of these in the past six-12 months, you’re probably paying too much.
“Work on habits like setting aside a regular portion of your income straight into a high-interest savings account and let it grow.”
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