What Net Worth Puts You in the Upper Middle Class?
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- Опубликовано: 21 июл 2024
- What net worth puts you in the upper middle class in Australia? In this video, we break down what net worth range qualifies you for the upper middle class in Australia. We'll also explore the net worths of different economic social classes, from lower class, lower middle class, all the way to Upper class.
#middleclass #networth #upperclass
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Chapters
00:00 Intro
00:24 The Data
00:51 Gross Disposable Income
03:21 Lower Class
04:11 Lower Middle Class
04:46 Middle Class
05:13 Upper Middle Class
05:41 Upper Class
06:18 The Big Picture 
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Successful investing/trading is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
this is incredible! how can I vet your advisor if you please? definitely would love to make money from the market too, but a complete newb..
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $400k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
Thanks for replying, You seem to know much, How did you go about it and can you recommend an advisor like yours?
Colleen Rose Mccaffery” just check her out. It's possible to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in April due to the crash.
I appreciate this tip. It was easy to find your coach's webpage by looking up her name online, She seems proficient considering her resume.
*YT Quick Survey #11:* For your shared investing ideas, what do you think will be the next Apple/Microsoft in terms of growth?
Some of the comments are a little disturbing (about people in poverty/lower class), so I'd like to chime in. I grew up in poverty, in housing commission. My parents didn't have choices. They were stuck in survival mode for nearly two decades, constantly receiving major setbacks (mostly health related) after seemingly progressing a little (managing to save a small buffer amount, then my Dad hurting his back at work and getting fired - this was in the 90's, these types of scenarios were frequent). My parents combined income barely covered the basic bills, even with some government assistance. They received no inheritances and unfortunately, both came from poverty backgrounds themselves and never became educated, often taking on low income jobs that had very little worker protections. They didn't have any family to fall back on. Everything for my family was a need and very rarely did we enjoy any wants. I remember not receiving anything for my birthday or Christmas for a few years except for a cake my Mum made.
I have always personally found that people who have never lived in this environment, have a lot to say about it and the people who experience it. If you have never lived in poverty or the "lower class" you really do not have a valid opinion on what it's like to actually live in it. How could my parents have saved/invested if they can't even afford a birthday gift for their child? Many people around Australia make these choices every day. I remember my parents skipping meals some weeks just so my sister and I could eat.
I am quite thankful I have been able to escape my family's poverty heritage. I did things like; make sure I didn't fall pregnant at a young age, went to therapy for the poverty I endured as a child, I learned a trade after I finished school (didn't go to uni) and was able to earn an average income. I never had family help, and always had to pay my own way with rent etc. It's been incredibly difficult. While I do agree when you get to a certain point, you need to draw a line between the difference between a want and a need (my income level now warrants this), talking like that to the people experiencing poverty is not at all helpful.
Anyone that is experiencing financial hardship, please call the National Debt Helpline on 1800 007 007 and talk to or set up an appointment with a community based, not-for-profit financial counsellor. They’re free, they’re confidential and they’re the unsung heroes of the financial world.
*Some of the Australians are a little disturbing
What were the comments the vlogger made that disturbed you ? She really presented the information in a factual way.
@@Southeastasiantraveler Sorry I don't think my initial reply was very clear - not the presenters comments, but some of the comments being left here for this video.
I know exactly what you mean. Most Aussies have no clue about the other side. I remember living on a loaf of bread for 2 weeks while in Sydney, worked hard all my life, , at 50 I'm now back where I started. Does it really matter? You can't take it with you when you die anyway
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
I stopped trying to predict market outcomes based on chart studying after 5 years of uncertainty. Not having a mentor caused me 5 years of pain. I learned to follow the market's direction and keep it simple with discipline.
The advisor that guides me is Sharon Ann Meny, most likely the internet is where to find her basic info, just search her name. She's established.
@@hasede-lg9hj Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
It is down to mindset. Many people crave for assets to show off with. I do very well but drive an 11 year old Subaru. The only 'fancy' thing I own is a grand piano I bought a year ago. Everything else is working for me. My friends my age earn nowhere near me but go on fancy holidays all the time, drive much better cars, live very flashy lifestyles. As you head through 40s and 50s the gulf between people who invest and those who don't grows wider and wider. If you've built wealth and understand the effort and process it absolutely *kills* you to go get a bank cheque to buy a car. Those who don't understand just sign up to the first dealer finance offer that lands in front of them.
I agree with this if you are talking about the middle class. The argument mostly falls over if you are talking about the bottom 20%. These people don’t even have enough to pay rent let alone buy a new car! Often because they own old cars they spend a lot just keeping them going. Flashy cars and investing money is not even something to consider when you can’t afford to eat.
Well put together information. It helps to see how i am tracking. Thankyou.
Other Big factors..
1. Being born into wealth
2. Migrating into Australia with wealth
3. Divorce laws that can devastate built up wealth.
4.Lucky investments
I agree that the factors you mentioned at the end of your video are 100% ESSENTIAL to build and maintain wealth.
Great video, thank you.
Thank you, Paul, for your added insights; sometimes luck does play a big part.
The more you educate yourself about investing the luckier you get.
Yup. My divorce doubled my mortgage, and I had an easy divorce. That was iver 10 years ago and my mortgage still isn't back to where it was, let alone below it.
Hey Irene, just wanted to say thanks for the videos you put out. I came across you a couple of weeks ago and have been watching quite a few of them and learning a lot from them. You have a knack for simplifying and condensing difficult topics, so once again Thank you.
Thank you for your kind words. They made my day!
Interesting, I’m single and my income is lower middle class and that’s what I thought I was, but my net worth is above middle class but below upper middle class, so I guess that makes me middle class without me even knowing it, thank you for sharing :)
The biggest problem is broken families and making the wrong decision of what is a "need" and what is a "want"
Oh yeah, that's "the biggest problem" haha come on. A top example of internet hyperbole. Well done 👏
@@mr-iz8cx spot on. The data above is most severely impacted by the relative increase in interest rates on mortgages (yes, that's a 'need') since inflation took hold, nothing more. Australians who took advantage of the RBA's panic rates are now copping it sweet.
@simonc6328 yes interest has returned to "normality", historically speaking. Very interesting.
All these people who have invested and are feeling economic stress, there's a good chance they'll lose their investments to the properly rich. It's just unfortunate that their tenants who suffer with the same inflation have to pay the price, in brutal rent hikes, for the lack of knowledge. This was always going to happen right? It's class warfare.
Interest rates forcibly held down post 2008.
keeping up with the proverbial Jones .............
I don't think you understand the structure of the economy very well. Nor of the generational challenges the poorest in society face. And the huge costs associated with being poor.
Good video, I did find the change in music from slide to slide distracting but that might be because I am listening with headphones. This is particularly jarring early around the 40-60sec mark going from piano to snare to techno.
Thanks for your feedback, I will raise this issue with the editor for future videos.
Loved the video effects Irene.
You’re getting lots of views.
Thank you for your ongoing support!
Thank you for the insightful video - but can I clarify how you derived the net worth for each class? The net worth figures shown on ABS says it’s around $500k networth for the lowest 20 percentile
Hi Leavia, thanks for stopping by! The data was from a 2023 mccrindle report McCrindle and ABS Domain House Price Report.
I don’t know where I sit. Have assets worth more than the upper class, yet income of the lowest class. My favourite hobby is watching other people work 😂
Is there a median calculation of individual (not household) per age net worth in Australia? I Imagine like superannuation averages they are skewed on the high end by those on the high end.
There's upcoming video about income, Super, home equity and Net worth by age groups. It's being edited at the moment.
@@IreneZhu Thanks for the reply and looking forward to it.
It is a little misleading to rigidly equate income directly to net worth, as it is possible to have a modest income and yet accumulate quite a high total net worth. Admittedly not easy , but doable.
Income is good, but what's more important is what people do with the income...
@@IreneZhu Correct, "the chains of habit are too light to be felt until they are too heavy to cast off". Lessons learnt early pay off really well later in life.
I grown up in Australia as an immigrate child with a working class family one income and my mother supplemented income by being a seamstress then built her way to 7 clothing stores then got wiped by the 90s recession, but it give me a hunger to get out of the working class, did education, running my own business but now at near 50 ill worked out the most important thing to llift class is who you many, its the make it or break it decision
You need to make a seperate category for the top 1%
Even if you divorce class from culture and focus only on money, it's complicated to tie class only to net worth. If a person finishes university and professional school and has a negative net worth, but then goes into a high-earning job and is simultaneously able to buy the accoutrements of the upper middle class AND build assets for the future, eventually retiring and still able to enjoy the lifestyle of the upper middle class just based on assets, then that person we can say, with hindsight, was in the upper middle class even when he had a negative net worth early in his career.
The thing about the net worth isn't that it, rather than income, is what puts you in the upper middle class; the thing is that the net worth is what's necessary to make your REMAINING in the upper middle class feasible.
It would be good to show which level pays the highest proportion of the tax and which gets the most back from the government, and which layers creat jobs or wealth.
Options trading... read heaps and heaps before you try it.
Treat it like a business.
And learn about the share market first. Read heaps. You can do it from anywhere.
Solid information. Thanks. With serious inflation, it's hard for the middle class to save these days. In USA, real inflation is over 15%, not the official number of less then 4%.
Another excellent video thank you Irene. Just wondering, do the "net wealth" values shown here include super superannuation balance? I assume so, but just want to confirm seeing as thought it's sort of a "deferred wealth".
Thank you for your comment! You are right, it does include Superannuation.
Is this video saying that earning $135k including super is an average income in in Asutralia?
I think to improve your financial osition and move up the ladder, you need
1. an income that allows extra money to invest, not just pay for essentials
2. an ability to live below your means whilst in the wealth accumulation phase
3. financial education and an investment mindset
4. an ability to set and stick to long term goals
Is this comparison done in AUD or USD? the cash you show in the video is USD.
It's in AUD.
Respectfully, you need to break it down further. Everything else being the same (job, for example), then someone in Sydney with two average houses paid off will be FAR better off than say, someone in Perth or Adelaide with the same two average houses, plus the former will likely earn more, just because "Sydney".
Also, people in places such as Pilbara towns or mining towns like Kalgoorlie or Roxby Downs will earn the same as people on North Shore or Peppermint Grove and these are HUGE statistical outliers, especially when compared to other outback towns near them.
Port Lincoln, SA has a very high per capita of millionaires, even though it is a country town, because of the fishing industry there. That's one example. These people have money, which means the choice to live there, rather than "having to live there".
Coober Pedy or Andamooka (opal mining towns) would be another one, if you could ever get anyone to admit to being one, because culturally, the old school miners who ARE, don't show off. You'd never guess who does and who doesn't...and they would never call or think of themselves as "upper class" because of money or their age.
Social class is nowhere near as obvious or strong in Australia as in say, the UK, where almost EVERYTHING is a class indicator; the words you use for things (sofa vs couch vs lounge), where you go on holiday (Italy or South of France, skiing vs a UK holiday or Ibiza), the type of school you went to, the sport you watch (Rugby Union or equestrian / show jumping vs Football), the newspaper you read (also shows your political standing), the TV shows you like, what your job is, if both parents need to work, what you eat and drink (other cuisines vs "chip shop tea"), where you sit in church, the denomination and which service you go to (high mass vs regular service) etc.
Social mobility is also hard. You can be a multi millionaire but if you were born "working class", you will NEVER be "upper middle-class", let alone "upper class", even if you marry into it, which you won't because people don't "marry below their station in life" when you reach upper middle-class or higher. Look at Premier League footballers, as an example, or the comedian Ali G and the sketch on "social class".
To some extent, money is part of your social class in the UK, but the joke is that all the supposedly "not so academically minded" kids that I was at school with, all got trades and now make as good, if not better, money that the smart kids do in their professional careers.
Also, consider the recent phenomenon of "tuhao"; 土豪; tǔháo. I have many Chinese friends (Mainland, HKG, KUL and SIN) who would argue VERY strongly that "Tuhao" (the Aussie equivalent would be "CUB" or "cashed up bogan") would NEVER be upper middle-class, let alone "middle-class", no matter their wealth level.
Not to dispute what you said, but the ones who did trades will probably have more health issues and potentially die younger than the professionals
There is still a class system in Australia, it’s just somewhat subtle. Take a meeting with Macquarie Bank or one of the big law firms in Sydney. Those guys will have a way of behaving, speaking, dressing etc that will put them at ease with others of their type, even if the junior associates earn less than 100k(right now). The guy they are working for on the latest project might have 30 or 50 million in the bank and earned 2 million last year, but in oh so subtle ways does not fit in. Wrong school, wrong suit, wrong joke, but probably very good in his business.
Speaking as someone who has only ever been working in manufacturing, l have been very careful with how we spend. We started out buying a block of land and poured our money into it to build equity and were able to build a house. We poured every extra cent we had into paying that home off and when we had enough equity we purchased 2 more properties. This was in our early 30's. We are now 60 and have been debt free for 12 years and have a significant nest egg. We don't drink, smoke, gamble or generally waste money on frivolous things. We pay cash for everything and do not own a single credit card. In a word, sacrifice. We set our plan in action in our 30's and stuck to it. That is how you get ahead.
Knowledge. Learn about money and how it works, it will change your life.
I come from the very bottom of the poverty ladder, and until i started learning what money was and how to make it work for me instead of working for it, i was a paycheck to paycheck worker drone.
Start now, the longer you wait, the more your going to kick yourself.
Both my partner and I are LOWER lower class. She lives in Housing Commission and she’s grateful not to be homeless. She hasn’t worked due 2016 due to various major health problems (breast cancer was one of the easier problem for her to deal with.) I live with my Mum to care for her. My part time job barely keeps up with basic living expenses. I can’t work full time because I have duties for my Mum. COVID destroyed my business. I am in the process of running it down while trying to work out what I can do next whilst working in my part time job. The only thing I have is my exercises and fitness.
Mate, I hate breast cancer, I hope your partner can recover from it. I have 2 female friends who have bc but they are now ok being on medication for the rest of their lives. Good luck to both of you.
Please keep the hope up and believe good things are going to happen! Sending positive vibes your way!
You also need to look at age. A household of 28 year olds say a couple is not going to have a lot of assets. Nor will they be at peak earnings. So any comparison must include age.
Absolutely, and it seems routinely ignored. I finished undergraduate university studies in 1977 and married a fellow student. At that point we had a joint negative net worth of $4000, based on a personal loan of $5000 and a sole asset of a second-hand car, and no income at all (for a short time). In 2024, after two lifetimes of work, we fit comfortably into the upper part of the upper class as described here - with no help from inheritances. Our children are following the same route, admittedly with financial aid from their parents that we did not receive.
Why do we never consider the inputs, only the outputs?
We say this group has this many dollars, that group has more or less etc.
We never ask what does a person have to put in to earn their income? How much time, how much skill, how much mental effort? Is being a cleaner as hard as being a surgeon or a top barrister? Of course not, the efforts required by a cleaner are trivial when compared to what a surgeon has to put in and sacrifice to earn their much higher income.
So why do we not consider what is contributed to earn an income?
Policy makers are party responsible for ensuring that those get a lucky break never look back.
Id say learn and implement common habits of successful people. That's what i did, and over time, I break my 9 to 5 mindset to constantly doing dollar productive things
Minset for sure!!! There is truth in the saying that rich people teach their kids to be rich and poor people teach their kids to be poor with their miney habits. The Richest Man in Babylon had the best and simplest principles for the rules of money and wealth IMO. The problem is that good money habits are not taught in school I think.
My biggest problem is the use of the pyramid as the graphic. If the lower class is 4% the upper lower 11% then the top two, upper middle and upper being 20% each the shape would actually be the reverse of the pyramid shown. You can tell that with the average wealth being the highest in the world.
Now to your question how to move up. Education, education, education. Basically pick a career that earns good money then continue to educate yourself. If you have a technical degree, then supplement it with a business degree your more likely to move into management and once you manage people rather than things you’re on your way to upper middle or upper. Act like your in the next level then you’ll be considered for the next promotion or give yourself the capability to change jobs into the next level. If your only doing exactly what is okay for your level then your not showing the initiative necessary to move up the career ladder.
If your not likely to get tertiary qualifications then these are the industries earning the most with the least skills. Mining, construction and maritime. You can earn upper middle income and if you’re both working, upper level income.
When your young change job regularly to get as much experience as you can.
Educations day is done. because there are way too many irrelevant subjects being taught and the price of them (at tertiary level) is too high. Most students should not be at university. And the current govt has a goal of 80% of Australian adults gaining a degree. Most uni degrees would be better done as internships over 2 years. Engineering, Science, Medicine and maybe Law are excluded. Many arts subjects should be hobbies and many are worse than that. Even subjects like accounting should not require 3 or 4 years of full time study. Programming and computer sciences do not need 3 or 4 years in one go. Teaching is probably a 1 year course after you have learnt and practiced your craft. Learn a trade - there are excellent opportunities for people who can work with their hands.
- Financial Literacy is not taught at school, it is taught by Friends and family and so families Stuck in bad habits pass on those bad habits.
- once you have accumulated alot of bad debt, it is almost impossible to climb out of it which then becomes overwhelming and people give up.
- The Government Assistance schemes help people in the short term, but create False sense of Security or discourage people from having a crack.
- Sadly, some people end up in situations that are out of their control that place them difficult living circumstances.
Great clip thanks, something that I came away with as well is that eighty percent are busting their ass and having a go only to be smashed by the highest taxes in the world to support the twenty percent that just don’t give a rats about working and have a sense of entitlement that’s just incredible. I don’t think anyone would begrudge having to look after the battlers the sick or infirmed that can’t work, having to support the ones that have made it a live style choice has got to stop.
Does super contributed by employers form part of your Gross Disposable Income ?
No, you can’t spend it right now so it doesn’t count.
@@yohjijames1413 so I assume salary sacrificed super is not included in the report ?
No, it doesn't. Super guarantee or any contribution from the individuals goes into the Super fund. It will count towards the net worth.
@@IreneZhuwhich means the gap could be a lot higher since higher bracket earners would have additional salary sacrificed to save on their taxes
@@rhlam83 There is only $27,500 in total including SG & sacrifice that a high income earner can put into Super, anything more than that, additional 15% Division 293 tax is waiting for them. So a lot of them might have other means.
In the last 30 years the ways people prosper has changed in Australia. The a worker in the 1990's if started at the bottom paid only 1.5 times their wage to own a home in Sydney. I bought my a home for $81900 in 1998 in outer western Sydney with a gross wage of $60k. Now that same property is around $800-$900k but my wage is only gone up to $65k. To progress you need to save more than you earn and rent is one of the biggest saving killers as long as you don't spend more then you earn. Time to look for a new country to live in.
Must be a shit job if your pay has only gone up 5k in 26 years. Your fault for being complacent with your own stagnation.
@@S.M.E.A.C Multi-nationals come in pay a salary no bonus no paid overtime, Condition in Australia for some have gone backwards. And I have moved in and out of from industrial to government and out in change of governments over 40 years. Now almost retired but could work again if the wage was right and not slave labor wage.
@@S.M.E.A.C Oh yes I forgot to say yes I have done a lot of jobs in my time and I wouldn't wish it on my enemy. I have to brace myself everyday for the verbal abuse I get and not try take it personal.
Another option is moving to the country areas where the money is good and the housing is cheap.
Everybody wants the city.. pushes prices up.
Not many country areas have good jobs, but some do.
Or do FIFO on mines etc.
It sucks to not be able to earn a decent wage and buy a house in the city,
But if need be, just move (always easier said than done, I know) but economic reality is economic reality
I say, understand the importance of money and have a good old self discipline. Once you have a positive disposable income then u can think of growing wealth. All these sound easy but they are not.
Lowest 20% has net worth of $35K. The next level has net worth of $588K. Thats a huge leap ! But pheww , I made it past the lowest 20%. With $120K..am probably in top 66% 😮
most of Asian Aussie build their wealth via real estate. While European Aussie build their wealth via stock. When you earn over 120k a year. You will know how easy to earn more money. The hardest one is to increase saving rate and deploy capital
what are you talking about? I've been earning over 120 for probably 20 years and every year its been harder and harder to earn even the same
As a 50 y/o Aussie bloke who has been frugal and worked hard all my life, I am completely broke and own nothing, I don't expect things to ever change. Australia is no longer the place to be
Hmm, at 2.6 million in assets and no debit, where does that put me? Interesting video Irene, 3rd liked
Upper of the Upper Class 😀
In the Upper class but at lower range of net worth.
A good starting point!
Chicken feed in Sydney. Ritch AF in a country town.
It’s puts you in the group of people that need validation and your ego stroked by random people on the internet, lol.
Are you sure the average income is $121K? Isn’t it around $80k or how is this calculated?
$80k is more likely to be the median average, $121k is the mean average.
@@IreneZhu Are you sure about that? I recently researched this and found numbers that were a good $20 k short of both of your figures. I will stand corrected, if that is the case.
@@IreneZhu Confusing for the average viewer as we’re expecting the median average
These numbers are household income (generally more than one job). I also believe the $120K average household income should be before tax is paid, not after tax as quoted in the video
Achieving wealth is as much a lifestyle choice as it is anything else. And for the vast majority of us, that lifestyle isn't all rainbows and unicorns. It's anything but. Well before worrying about investments, you need to learn to, and be comfortable with, living within your means. And if you're living within your means, you have no consumer debt of any kind. No car loan, no credit cards
no After pay. Nothing. Just your mortgage, if you've got one. Keeping up with the Jone's will kill your chance of success, so don't try. When you've got a few dollars together, then it's time to talk about investing. At that point, see a professional.
Good quality education, determination and drive to do well, invest from an early age.
Thank you for sharing.
Over 2 millions dollars separates the net worth of the upper middle class and the upper class. That seems substantial.
The pyramid diagram is misleading; it makes it look as though the lowest class is the biggest, when it’s the same size as all others.
"yes, you heard that right" as if that was a suprise.
Everyone bashes people who are 60 and over for the last 20yrs. Most of them didn’t finish high school and just worked, usually stayed in there first residence which they payed off as quick as they could, bought used cars put money in superannuation or saved, were debt avoiders, and people under 50 can’t, and won’t do the same. And now cry because they think it’s wrong these people have $800,000 plus houses and $1 million plus as self funded retirees. Go figure!
follow the fire principles- work hard at your job, get promoted over time. Save over 50% of your salary if you can, salary sacrifice into super when you’re young so it can compound for decades at a very low tax rate with no capital gains at retirement. Invest in high growth super, which is basically share ETFs with higher short term volatility but much higher average low term growth.
buy a house / apartment and pay it off to get out of debt asap
work the maths !
My country is gone that i grew up in. Now just a place where you are
an “ aussie” . After being in the county for five mins !!. The values are me
Me me.. and “ wealth” is some overpriced falling apart piece of junk real estate that is so rodiculously over priced it’s a joke.
No wealth at all in reality
As a single never married man with zero children who didn't complete high school. I have a job that pays a lower middle class income, basically a little over minimum wage. From that low income, I've built a net worth in the upper class from that income.
I see some people in the lower class with 6 or 7 children. I see people in the upper class with upperclass wealth & income, with no children or just one child.
We have a society that has disincentived the middle & upper class from creating a nuclear family. People vote for this. You're voting for high taxes, to distribute to the lower class who grow there bennifits from having more children, you're voting for high housing prices & your voting for the destruction of the family unit for the middle & upper class.
Without the family unit, you may as well be poor, as you don't have any legacy to leave when you're gone. Just remember you're voting for your own extinction when voting for the 3 major parties.
No none of this is a surprise AUS has very high housing cost.
Average net work is 1.2 mill?
What is the mean?
You meant median? The median household net worth according to ABS is about $579,200.
@@IreneZhu Doesn't the mean refer to the average and the median the mid point of wealth. There is the same number of people above your wealth as below your wealth?
@@Rick-kj9dd mean is the average, which is normally screwed by the outliers. Median is the middle point.
Average and mean are the same thing. What would be interesting would be to know what the median incomes are. That is the middle income. Average can be misleading because it includes all the people who earn 5$ mill a year.
Been out of school for a while, but median sounds right.
I'm betting the rich folks have all the assets...lol
Australians lack the frugality necessary to build substantial wealth outside of their PPOR. I had to learn from my foreign and frugal girlfriend. Now we're somewhere between upper middle and upper class and we don't have to be as frugal anymore.
Yes, frugality (and hard work) is the key to building wealth
I would survive on $25 per week for food. possible if you live on baked beans and noodles. I think I know how to be more frugal than most. I still own nothing
what amazes me is how hard it is to make money and become wealthy. but that might be just me.
being a self employed tradie is the easiest option, its what i did
Anyone who thinks that money is what makes class in Australia is clearly deluded.
The classes in Australia aren’t derived from income, they are derived from assets. Only foreigners don’t understand that, that is how it’s always been.
The classes from the data in this video was based on net worth, so assets, not income. Income is good, but what's more important is how do you do with it.
For people in the USA watching... $1 USA = $1.5 Australian dollar. I think that Australians are in better shape on average than the USA?
we not it cheaper to live in usa
Screwed .. 5 years in this country, in terms of disposable income, I am upper class, but lower middle class in terms of wealth.
You want to be secure once your past fifty, avoid debt,and put in the hours working. You buy the Ute to go shopping, you have problems already.
Get a high savings rate. Slash all your costs to the bone. Be uncomfortable, go without. Then invest every month to super amd etfs. Simples.
Most people will not do anything challenging therefore get no result.
Well said RC! Average effort leads to average result.
Not sure if you’re a citizen or not but you don’t really understand Australia much. You see the great thing about this country is we Aussie’s don’t identify with class structures. We leave that shit to the old world.
Your use of the word "class" is not appropriate for Australia. You are using a very American definition of "class" that is entirely focused on income and wealth. In Australia we would specifically use the words income and/or wealth to categorise them. "Class" is more alligned to social status. Where were you born, what is your level of education, which school did you go to, what job do you have and where do you live now. Wealth does influence your class but it is not the defining factor.
Join the conversation and describe your stereotypical upper-class family -> ruclips.net/channel/UCnyVuY5IqwgbGmwolhxd1vQcommunity
Many people all over the world have been very lucky with property if they bought at the right age. But the prob in Aus is two fold. They use their house as an atm. That is taking equity out of their home as soon as it goes up in value, and the other is that unlike the US , they don’t have fixed term mortgages for “30 years. Australia will become more interesting as a disaster after China increases demand on their resources again. Rates will be forced even higher and the middle class will be broke again.
High rents are the biggest barrier to improving your financial situation. I blame the govt for that.
Agree. Too much government rules and regulations. Let them get out of the way and people will build.
@@Xalta_Sailor Too many cowboy developers and builders already building trash and you want unleash the hordes, just saying and have a nice day.
@@michaelmcclown5593 yup, buyer beware.
Australian. Degree in Science and Degree in Mechanical Engineering, 40 years Old, Net worth is negative #TheLuckyCountry
What? A net worth of about $3.3m puts you in the upper class?
Not sure what world the people who make this vide live in, but I know some genuinely upper class people, and just their homes are worth multiples of this.
Aussie Aussie Aussie! Oi oi oi🎉
Im 26 with $120k in savings, 34k full paid car, 30K safely invested in stock market but dont own a property yet . Where am i? I am getting passive income of average $600 a month and I just re-invest them back cuz im not good at spending my money. I just save and invest. I call my investment my babies xD
I think age does a big impact in wealth.
a young 16 years kid is always wealthier than 95 years old billionaire.
There's more to class than money.
The rich get rich by spending like the poor and the poor stay poor by spending like the rich.
That’s over-simplified and quite a tired rhetoric.
There are 5 equal groups???
Didn't think so.
They are quintiles of population. How many do you want it broken down into? Deciles?
Loved your vid as always. I think you should have 10 million subscribers, rather than that horrible American walnut you had on the end. Hate that guy.
Thanks for your kind words! Hahahaha that Uncle Ramsey 🤣
All I know, is this country is finished. There will be no future prosperity while housing and rents are so damn expensive. The amount of people I know earning 200k + planning on leaving is climbing. Australia will need all those Indians in the future...
Class and wealth is not the same thing
Join the conversation and describe your stereotypical upper-class family -> ruclips.net/channel/UCnyVuY5IqwgbGmwolhxd1vQcommunity
I mainly stay home so don't spend money; I watch lots of You Tube.
Too much focus on investing money than saving money 😊 typical mindset of a western society.
Fairly useless if we don't include age brackets.
Sitting on my couch, naked, eating weetbix and honey for dinner, watching this video....only to be told I'm upper middle class 🤣
Been there as "toast or cereal for dinner" in the 80s, back in the UK as a "latchkey kid".
The Australian Dream of owning your own home is now over. Only the upper middle are going to be able to buy a home. This is reflected by the new home owner rate. It's plummeting off the chart compared to people buying a second property or full on investors. Sadly I don't think this trend is going to change . There has been a paradigm shift which would be very difficult to now reverse. 😕
I know single tradies in their twenties who own their own houses
@maddyg3208 I probably should have said Australian dream will soon be over,not It's over lol. It's getting way more difficult for young people to own a home. The rate of first home owners is going down fast 🫣
In my opinion it has been a grave mistake to forcible hold down interest rates. This has lead to "investing" into what people desperately need almost like food and water - a place to live, to call home. People who are already very rich and have almost anything buy up houses (prices then rise exessively) and eventually make even more money on the expense of people who are already struggeling. At the very least I would call it profiteering - or should we call it theft?
end goal communism the poltical claas buy up everything are you a dumb socialist ???
This is what happens when people vote labor.
We get what we deserve.
Who gives a crap. Go and do something...
there no lower middle class or upper middle class you're so wrong!