Australians Are Still The Wealthiest People In The World…

Australians seem to have lost their mojo! Due to COVID and other pressures for much of the last few years, we were an unhappy lot, then just when confidence seemed to be returning earlier this year, it took a slump again. So what does it take to make us happy?

Obviously, it’s more than money because we are already one of the world’s richest people.

Now, before you shoot me down, let me explain. I understand that to be wealthy is more than just having money, but money is important for many aspects of life. The rent or mortgage still need to be paid as well as trying to cover the rising cost of living. To have no money in a capitalist economy is not easy however, wealth is measured differently by everyone.

Many of us are worrying about making more money so we don’t need to worry anymore but how much do we really need to be happy?

How much money do we really need? Do we really need that third TV? Bigger boat?

Back to the point, I was starting to make – We’re Already Wealthy

Accordining to the Global Wealth Report, which showed that Australians were comfortably the richest population in the world, with a median wealth per adult of $US194,000.

And again, just recently, at the end of 2020 Credit Suisse reported our median wealth has now risen per Adult to $US238,070 topping the global list.

 

With Belgium second, Hong Kong third, New Zealand fourth and Demark fifth.

 

 

With a population of roughly 26 million and 19 million adults 

Interestingly, the report states that Australians comprised some 1,571,000 people in the top 1% of the planet’s wealthiest people.

 

By the way, in order to be in the world’s top 1% you need a net wealth of $US823.763 and if you have net assets of over $US71,000 you are in the richest 10% of global wealth holders.

The fact that the proportion of Australians with wealth above $US200,000 is the highest of any country, and several times higher than the world average, is mainly thanks to Australia being sparsely populated, our high levels of natural resources and our high real estate prices.

How many millionaires?

America still has the largest number of millionaires – more than 21 million – four times higher than its nearest rival China and Australia has more than 1.8 million, millionaires.

Perhaps these guys could donate some of their small fortunes to some much-needed charity causes…

What’s ahead?

Australia’s comparative riches were obvious from the high cost of housing and the amount of money Australians held in the share market, which is above where it was before the pandemic.

The RBA’s lowering of interest rates in conjunction with other central banks across the world was probably the biggest contributor to Australia’s performance in the Global Wealth rankings in 2020

What will the future hold now the RBA is returning interest rates back to the normal number, which should end up over 2%? I don’t think it will reduce the millionaires, and once it settles down, back to normal, we will all go back to enjoying the great lifestyle we already had and have in Australia.

Don’t forget wealth is not all about money wealth is about happiness and enjoying time with friends and families over a simple BBQ…   

Therefore, yes, I believe there are some good reasons for our mojo to return!

Source: credit-suisse.com