This time of year allows us the opportunity to reflect on our income. And perhaps a step further, our financial future.
I remember growing up with a friend who owned a major real estate company in Melbourne. I was 10 when I went to her home for the first time. It had so many bedrooms, I was lost inside, a green grass tennis court, and a short stroll to the beach.
It was sold for $8 million a few years ago.
Going back home to my middle-class life, at that time, 50% or more of Aussies were much wealthier than my family and enjoyed fancy homes, flashy cars and luxurious lives.
Fast forward some time, the top 10% seemed to be the number that used to describe wealthy Australians. This was usually measured by their net worth. If you were in the top 10% you were doing very nicely thank you very much.
Today, the percentage is shrinking even further, and wealthy people seem to be in the top 1%.
So what does it take to be among the top 1% by net worth?
The amount of money you need to hit a 1% milestone in Australia has doubled in the past 2 years in now sits at 5.5 USD (8.3 million) of net worth.
Well, my childhood friend’s parents, assuming they have other assets would be sitting pretty now, having sold their property at an event 8 mil.
In Australia, we rank third behind Monaco, Switzerland, New Zealand and the US and require at least 5 million USD.
In Australia, the wealthiest typically have only about 3 homes. Some have commercial properties and shares are the biggest asset holding.
8 million, you say?
Well, not if we move to another country.
- The top 1% of people in India hold at least $175000 USD or $264000 AUD of wealth
- The top 1% of people in the Philippines it’s $57000 USD or $86000 AUD
- The top 1% of people in Kenya it’s $20000 USD or $30000 AUD,
But not everyone wants to uproot their life and go and live like a king or queen in a foreign country.
And it depends on what type of lifestyle you want.
Do you want to go away 3 months of the year around the world, travelling business class or do you want to stay at home and spend it with your family?
Your spending will have a lot to do with the number.
So do you want to be in the top 1%?
Or perhaps aim to be in the top 10% for the top 20% or even 40%?
Remember, wealth comes in many different forms. Yes, there is the financial monetary form, and there is wealth from relationship stability, being healthy physically, or strong social bonds and connections.
- Why not reset (or set) your objective?
- What are you working for?
- What is your financial goal?
- What are your life dreams you’d love to work towards?
Then this time of year, you can check in to see how you are tracking not only financially but all areas of your life.
Onwards and upwards,
Leadership Coach & Master Certified Demartini Method Facilitator