Are You Rich? Let’s Chat About What It Really Means

Australian money, calculator, pen. Photographed by RomanR. Image via Shutterstock

The age-old question of “are you rich” has a new spin in today’s financial landscape. According to a recent news article on news.com.au, the numbers can be quite revealing. But, beyond the figures, let’s explore what it truly means to be rich in Australia.

 

Numbers on Paper vs. Real-Life Richness

The article highlights that if you have a net worth of over $5.3 million, you’re in the top one per cent of wealthy Australians. Additionally, the average Australian considers themselves rich if they possess around $1.3 million in assets. These numbers are certainly eye-catching, but they don’t tell the whole story.

 

Defining Richness: More Than Just Dollars

Richness isn’t just about having a substantial bank account. It’s about quality of life, relationships, health, and even how much free time you have. Imagine having millions but being too stressed or too ill to enjoy it. Doesn’t sound very rich, does it?

 

Lifestyle and Happiness

The article suggests that financial comfort varies greatly among individuals. For some, richness means owning a beautiful home; for others, it’s about having time to enjoy life without constantly checking the clock. Consider someone living in a modest home, debt-free, with a fulfilling job and weekends spent with family and friends. Compare this to another person living in a mansion but swamped with debt and barely any time to relax. Who feels richer?

 

Financial Freedom: Your Personal Benchmark

A key takeaway from the article is the concept of financial freedom, which often proves to be a better goal than simply amassing wealth. Financial freedom means having enough savings, investments, and income to afford the lifestyle you desire. Whether that’s retiring early, traveling extensively, or starting a new business, the choice is yours.

Interestingly, the article points out that many Australians feel financially comfortable with a yearly income of about $250,000. It’s a solid benchmark, but the true figure depends on one’s expenses and lifestyle. Someone living in Sydney might need more compared to someone in a smaller town.

 

Creating Your Own Definition of Rich

So, how do you start crafting your own definition of rich? Here are a few tips:

1. Set Personal Goals: Think about what you truly value. Is it time, experiences, or stability? Set your financial goals accordingly.

2. Budget Wisely: Keep track of your income and expenses. This helps in understanding where your money is going and where you can save.

3. Invest Smartly: Consider diversifying your investments. Whether it’s property, shares, or starting a business, make informed decisions.

4. Health and Happiness: Don’t neglect your physical and mental health. After all, what’s the point of being wealthy if you can’t enjoy it?

So, where do you stand? Do you feel rich, or is there more you’re aiming for? Remember, being rich is a personal journey and not just a number on a bank statement. It’s about finding balance and creating a life that you love. Defining wealth in broader terms helps us appreciate what we have and focus on what truly matters.

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Feature image: Photographed by RomanR. Image via Shutterstock.
This article was first written by Vanessa Stoykov and supplied to Hunter and Bligh.

Written By

Vanessa Stoykov

With over two decades of experience in the wealth creation space, Vanessa Stoykov knows how important it is to have courageous conversations in order to achieve financial freedom.

From her 25 year history of owning a financial services education-focused media business, Evolution Media Group, Vanessa has a deep understanding of the finance world and has the unique ability to communicate this in a way that everyday people can understand.

To learn more about Vanessa, go to her website www.vanessastoykov.com