Remember when you read the list of latest millionaires as part of the rich list? Well, I am sure you would also have planned to be a millionaire as soon as possible. Sorry to say but it’s time to revise your target. Looks like a million has lost its sheen. Being a millionaire no longer means private yachts, exquisite wine collections and caviar.
A millions of dollars may sound flashy and is no doubt a pretty good sum, but come the turn of the century and inflation along with the advent of some very expensive products have ensured that a million no longer holds the same value as it used to earlier. And being rich has a new number now! According to a study, the new number that classifies you as rich is A$ 5.3 m. That’s the amount of savings those surveyed thought, on average, qualified an Australian as being “rich”. That clearly means, to be rich you need to be a multi-millionaire. Statistically, this represents more than seven times the national Australian average household wealth, which is A$740,000.
The fact that you get into home mortgage earlier than before, own a car pretty much at least 10 years earlier and aspire to have the latest gadgets that the media companies tend to launch time and again, have started burning big holes in the pockets of the average citizen. This has brought down the value that a million can get you and once you account for mortgage repayments or rent, along with household bills, travel, and the cost of having a family, there’s not a whole lot left over in savings.
You could be earning a six-figure income and still be struggling to save. Childcare and education were among the expanding costs faced by Australian families which made it difficult for savings to take concrete shape. The new destination of multi-million dollars is not an easy destination and to get there, you need to plan better.
A good plan to get to a comfortable position financially is to always draw a budget, stick to it and make sure that your saving targets are met as soon as your salary arrives. Government subsidies need to be utilized better and always go for negotiations with banks as far as interest rates on mortgage and savings are concerned.
Here’s wishing you a safe financial trip and a faster multi million destination.