Unattainable wealth aspirations: Average Aussie needs $330,000 to feel rich
The average Aussie says they would need to earn a far higher salary than the average wage to feel rich, according to new research from Finder.
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A nationally representative survey of 1,013 respondents revealed 1 in 4 (25%) Australians wouldn't consider themselves affluent until they were earning at least $500,000.
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The average Australian said they would need to earn a salary of $326,900 per annum – nearly 7 times greater than the median personal income of $49,805 – to feel rich.
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Kate Browne, personal finance expert at Finder, said constantly longing for more money can be a dangerous game.
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"A small percentage of high-income earners make average income statistics look impressive, but the reality is that the typical middle-class Australian is actually earning a $50,000 salary.
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"If you are already fortunate enough to earn more than the median wage, it's a good reminder that you are already ahead. It can be tempting to keep striving for more, but it's also important to truly enjoy your work."
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Finder's research found Generation X report needing the most money to feel rich ($354,100), while Generation Z need a little less ($286,964).
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A US study by Credit Karma found almost half (48%) of millennials spent beyond their means to keep up with their friends in 2019, up from 39% in 2018.
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Food (47%), clothes (41%) and travel (33%) are the main things millennials were found most likely to overspend on.
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"Remember social media is a highlight reel, and while it can seem like everyone around you is hustling their way to the top, appearances can be deceiving.
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"There's nothing wrong with striving to be financially comfortable, but endeavouring to compete with others is exhausting and expensive, and you'll never be satisfied with what you already have.
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"It can also encourage you to overspend on items you can't afford."
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Browne said there are many ways to build wealth outside of earning a competitive income.
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"Working on habits like cutting back on spending where you can and saving a regular portion of what you earn is a great start.
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"Aim to put at least 20% of your income every month into a savings account and let this grow. Having a savings goal to work towards – such as buying a house – will keep you motivated to keep going.
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"Because interest rates are very low, you might also want to consider investing some of your money elsewhere for the future.
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"Money management apps like the Finder app are a great way to keep track of your income and expenses. Seeing your spending broken down by category can help you set a realistic budget and manage your bills," Browne said.
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Women ($333,010) report wanting slightly more than men ($318,952) to feel wealthy.
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Want to learn how to effectively manage your money? Check out Finder's guide to Budgeting 101.
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