What Net Worth Puts You In The Upper, Middle & Lower Class In Australia?

Рет қаралды 43,308

Күн бұрын

What Net Worth Puts You in the Upper, Middle & Lower Class In Australia? We use data from the Australian Bureau of Statistics to determine what net worth and income you need to earn to fall into each socioeconomic class.
ABS Distribution of Household Income, Consumption and Wealth - www.abs.gov.au/statistics/eco...
McCrindle Distribution of Wealth & Income - mccrindle.com.au/app/uploads/...
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▼ ▽ TIMESTAMPS
0:00 Intro
0:55 Lower Class
4:10 Lower Middle Class
5:39 Middle Class
7:08 Upper Middle Class
8:38 Upper Class
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Пікірлер: 131

@raymondla 11 күн бұрын

Where does your networth put you guys and do you think savings rate is the most important factor needed to move up into the upper class? 💰

@mitchh3879 7 күн бұрын

How about you, Raymond?

@Dreamer10888 6 күн бұрын

@@mitchh3879yea , please tell and I’ll tell

@AzuraLOL 5 күн бұрын

Net worth puts myself and my partner as Lower Middle Class $220kish, Disposable income around 200k so where does that put us haha

@Dreamer10888 5 күн бұрын

you asked us where we fit, you should reveal yours too?

@Dreamer10888 5 күн бұрын

@@mitchh3879 i really hate people who asks for personal info but refuse to divulge their own info

@zoelee8471 7 күн бұрын

Paid off HECS, finally in the positive and slowly building wealth. Thank you for your wonderfully clear explanation 😊

@raymondla 6 күн бұрын

You got this!

@glennrao2341 6 күн бұрын

Well done!! Keep going!!👏👏👏

@mertkaracayil 3 күн бұрын

thank you for data Raymond. love the clear explanation.

@chillikoala 7 күн бұрын

Interesting video, thanks. Note, the term 'Millennials' refers to the generation that were born in the previous century but became adults in the new millennium, although some bring this range forward a little to 1980, including McCrindle. This means the youngest Gen Xers are 44 years old in 2024, not 35 (who would be Gen Y/Millennials).

@MattyClivingthedream 2 күн бұрын

I think you missed an important point with savings. If you are earning less money, almost all of it is being spent on non discretionary spending. For these classes, there are little opportunities to save money. As for me, I have always been in a position to save money and had the opportunity to purchase a house over 20yrs ago. Having the benefit of a huge increase in property values, combined with no debt, has catapulted my net wealth. For the next generation, this is almost an impossible dream.

@ugteku7143 7 күн бұрын

Thank you very much for this very interesting video. I’ve learned a lot😊

@raymondla 7 күн бұрын

Glad it was helpful!

@life_and_motion 4 күн бұрын

We are halfway between the top 2 tiers and are younger Gen Xrs. The odd thing about our household is that our combined income is closer to the bottom 2 tiers due to personal circumstances. Fortunately, unlike my partner, I have always actively been saving and investing.

@kamlaky 6 күн бұрын

Thanks, Good info

@raymondla 6 күн бұрын

Glad it was helpful!

@nitehawk9270 2 күн бұрын

Net worth is how many kids or grandkids you have. Money is just a tool to achieve it.

@Northstar2000 7 күн бұрын

Wow, we are close to breaking into upper middle class as a single earner family of 5. Wife and I are aged, 31 and 33

@raymondla 6 күн бұрын

That's a commendable effort on a single income household!

@Northstar2000 6 күн бұрын

Thanks mate, i like your channel

@ManthanPandYEAH 4 күн бұрын

How !!? What’s ur secret

@Dreamer10888 Күн бұрын

I’m sorry hard to believe

@CJ.1998X.Y.Z 3 күн бұрын

According to the numbers I am upper middle. That is in large part due to two strokes of financial good fortune. 1. I bought Afterpay when it first floated and sold the lot for $400k and used it to buy a $700k house. 2. I was left a substantial inheritance and paid off the mortgage. Now my house is valued at $1.1m. However I consider myself even more lucky because I am only 33 and clear $3.1k a fortnight. I have been building a huge super balance for 3 years straight. I think classes like those above are a tool but not blanket useful. As I have so much disposable income due to having no mortgage and no kids sometimes I have more money than some lawyers at my firm who earn $400k+ but have a huge mansion to pay off and kids at private school

@Wesley-ui3dw 6 күн бұрын

Data was back in 21-22, 3 years inflation is a lot to consider. Also within top 20%, figure goes up exponentially, probably top 20% of the top 20% should be considered real upper class.

@treetime17 6 күн бұрын

Thanks for the video. My partner and I are 21 and 22 respectively. We make about 130k gross combined and have a networth of ~380k

@Dreamer10888 6 күн бұрын

That’s lovely, you guys are so young and sharing a wonderful life and earning a lot for your age

@raymondla 5 күн бұрын

Nice work you guys are killing it at such a young age!

@JeffOHalloranUNE 2 күн бұрын

You certainly do not need to earn the high salary to gain entry into the higher net worth class groupings. Learning the magic of compounding is important and time invested in income producing assets.

@myic90 9 сағат бұрын

Panicking. Will be 34 this year, around 30k in super, 20k in debt and 5k emergency cash. about 3k in brokerage. no property or other assets. Recent immigrant though, so started well behind. 110k income in sydney, so hcol making it very hard to save. Scary times ahead.

@timallen2892 7 күн бұрын

We a half way between the upper middle class and the upper class, not bad for someone who was born in 1985 and failed high school.

@glennrao2341 6 күн бұрын

Well done!!!👏👏👏

@Dreamer10888 6 күн бұрын

Self praise is no praise

@timallen2892 6 күн бұрын

@Dreamer10888 your right. I will tell my wife that I made $65,000 for a month, and all she will say is. "What is that all you work 6 day a week from 7am to 12am didn't see the boys for that"

@timallen2892 6 күн бұрын

@Dreamer10888 your right. I will make $65,000 in a month, and the wife will say, "Is that all"

@Dreamer10888 5 күн бұрын

@@timallen2892 yes that is inspiring, thank you for sharing. I just assumed you were in the building industry

@angelaleahy1478 8 сағат бұрын

We are definitely in the top 20% with assets which surprised me, but having been low to average income earners often on one income while we raised 5 kids and 7 foster kids, our story is more unusual. We made our money by renovating and investing in property both in our own name and in smsf. Its not what you earn, but what you do with it.

@kristian8306 5 күн бұрын

As time goes on the path to wealth in Australia will predominantly through inheritance. You can't expect someone born in the year 2000 to be saving enough to outpace the growth in the housing market.

@nitehawk9270 2 күн бұрын

Only fans or fansly is the path government has given our kids. Completely disgusting. And no I have never dropped a dollar on that. It shouldn't be rewarded.

@Skybar23 6 күн бұрын

mine is weird as in I dont really fit into either low or lower middle class as a single person. My networth is about 160k Annual Gross income 97k I dont have any debts nor own a house and dont have any savings thus far.

@movingloz 3 күн бұрын

So interesting. Lower middle here according to this.

@Gonzalez1578 4 күн бұрын

Wife and i are 30 and 29 houshold 210k however don't think our net worth anywhere near the 1m range haha, i think hkusing prices are pretty high thougj so our house worth 620 k now and were paying it off fast! Roughly 400k remaining. Sometimes you want to be older due to this however wishing away being young is never good, we just gotta enjoy the process

@Mrjudsonjames 4 күн бұрын

This video has depressed me, as I thought I was doing better than I actually learned I am after watching this!

@thetwowheeledintrovert3367 Күн бұрын

These are headline figures, much of this is impacted by where you live and how net worth is actually made up. Let’s say ‘Fred’ lives in a state capital and his home is worth 2 million dollars - and makes up the bulk of his net worth. ‘Mary’ has a similar net worth but lives in regional Australia, house is worth $600,000, and the rest of her net worth is in investments. In my books Fred is in trouble, while the bulk of Mary’s net worth is in income generating investments - and is well off. Remember too, comparing yourself to others is a pathway to ruin. You do you.

@bugsbunnyalex 6 күн бұрын

True Upper class is top 0.1%, not 20% haha

@glennrao2341 6 күн бұрын

Agree!

@anth1839 5 күн бұрын

You would be surprised there is a lot of people with alot of money around that's for sure!

@lexi4442 7 сағат бұрын

Incorrect the term used for them is the “ultra “ high net worth individual

@Itsme-fb2ub 2 күн бұрын

Im spread across the top 3 based on your video. My net worth would be higher if I bought a house instead of travelling a lot, but im happy with my choices 🙏

@EdwardLawPhD 6 күн бұрын

Are your numbers (the networth etc.) per household (family) or per capita (individual). If it is per household, Australia is not so doing well.

@raymondla 6 күн бұрын

The numbers are per household

@mjmf1430 6 күн бұрын

In Singapore, these net worth figures would be closer to per capita, particularly for the upper quintiles.

@Dreamer10888 6 күн бұрын

No one cares, Australia is still the place to be, not Europe, not Asia, and definitely not America …. If you haven’t been here before you would be amazed as to how well off a lot of people are here.

@Dreamer10888 6 күн бұрын

@@mjmf1430Singapore’s population is too tiny to care, no one in Australia cares about sg until we have to stopover there.

@man8god 5 күн бұрын

Singapore is a very wealthy country

@aaronsinspirationdaily4896 4 күн бұрын

Supposedly I’m Upper Class by net worth and savings. I live in a cheap outer suburb, retired early 40’s, income is purely from investments and less than $60k per year with 3 kids. I’m rich in time.

@life_and_motion 4 күн бұрын

Similar to myself mid to upper in worth but I allow a frugal income from investments and have no debt.

@Dreamer10888 Күн бұрын

Ur a lazy c

@AgathaTsing 7 күн бұрын

Is gross household income pretax or after tax?

@raymondla 6 күн бұрын

Gross household is aftertax

@Dreamer10888 6 күн бұрын

@@raymondlait’s before

@tonylu6905 5 күн бұрын

Do you think its an accurate reprsentation to include super as part of your assets in networth in Australia? Most won't have access to this until 65+

@raymondla 5 күн бұрын

Yes, superannuation is still your money even if you don’t have access to it till later in life.

@MrMelonMan96 4 күн бұрын

Is disposable income your after tax income, or your after tax income leftover after all your expenses?

@raymondla 4 күн бұрын

It's your after tax income only

@nonamenoname6921 3 күн бұрын

The upper class are in your words ‘good at saving’ because they do not have to use most or all of their income to keep a roof over their head or food on the table.

@jack12343 5 күн бұрын

Can you please define "disposable income"? In the video you displayed income which I'm guessing was not household income (it seemed too low) but you kept saying "disposable income".

@raymondla 5 күн бұрын

The ABS defines the following terms: Disposable income = gross income less taxes on income Gross income = Defined as private income plus government pensions and allowances (social assistance benefits in cash)

@jack12343 5 күн бұрын

@@raymondla thanks, this all makes a lot more sense now!

@Sean-me4fv 3 күн бұрын

Sitting in under middle class, but feeling much more worse off than I was before Labor took government.

@zhangliao161 4 күн бұрын

Between middle class and upper middle class at 33yo. Guess we have to grind even more.

@utetopia1620 3 күн бұрын

Net worth of Upper Middle, savings of Middle, and income of Lower Middle... So I dunno where I sit. 🤷🏻‍♂️

@johnsnow7873 3 күн бұрын

Depends where you are living a very standard 4 bdrm house in the middle of bumfucknowhere of sydney costs 1mil

@Dreamer10888 Күн бұрын

Yea, u need to have net worth $3m to be middle here

@chocoholicchappers 3 күн бұрын

economic capital is not the same as social capital. i would argue a professional classical musician, an artist, an academic, or a scientist is a low earning but high social capital profession, who would be considered as being of a higher class than a plumber who earns three times as much and invested sensibly.

@David-qz7fx 2 күн бұрын

The middle class should be the biggest segment of the population

@NekoEspada 3 күн бұрын

I guess I'm an unconventional middle to upper class now. Bought a house at the right time that I have since paid off and has gone up in value over the years, plus super and shares but I'm an unskilled worker on 50k and have almost zero in savings cause I still have a student loan.

@Dreamer10888 Күн бұрын

Nice one

@CielinaDress 5 күн бұрын

imagine being wealthy enough to ask if you're poor

@Zmart30 7 күн бұрын

Do you count your house as a negative towards your networth though? Like if you have a $250k net worth but have a $500k mortgage wouldn’t your networth be -$250k?

@mitchh3879 7 күн бұрын

Yes. Net worth = assets - liabilities. Liabilities include home loans.

@raymondla 7 күн бұрын

Yes you do count your liabilities such as your mortgage. But if you have a mortgage you would also have equity in the house from your house deposit, so your net worth wouldn’t be negative.

@DavePiredda 7 күн бұрын

Net worth would not be negative however since the value of the home also needs to be included i.e. $500,000 home value less $250,000 mortgage = net worth of +$250,000

@msbhv_jin 5 күн бұрын

That would be calculated in your net worth. So if your house is worth 800k and you have 500k mortgage, your networth would be 300k

@Harrybollox 4 күн бұрын

The question is do you have class or not, most of us regardless of wealth do not

@terryp6396 5 күн бұрын

u sure these statistics are correct? that figure for 128k for millenials is off. unless they were referring to a couple and not an individual. Abs notes that this is only about 14% of the population of that age (based on 2022 data). i seriously doubt wages have gone up to the point where even the healivy skewed average of 128k is reasonable for that age group.

@rickdaniels1000 5 күн бұрын

Yeah it seems very wrong to me. The average full time wage in Australia now sits at 98,000 for one person gross of tax. Income stats from the ABS are usually based on households and include part time workers too. The only real way to benchmark wages is OTE annualised salary including super before tax.

@PhoenixWright-vj4qm 5 күн бұрын

After watching this video, I feel much better knowing that I am not that rich. lol

@locky4809 4 күн бұрын

Ok, I have 85k in the bank, 70k in index funds and 90k in my super. With a 15k car that would put me at at 260k net worth. I have an income of 152k. So I am somewhere in the lower middle? Honestly I don’t know how someone can have a 500k net worth with only 20k in savings. I may only be in my late 20s but I thought I was well ahead. Most of my friends have never had more than 5-10k in their bank and are paying off 50k car loans. Not to come off as a jerk but these numbers in the video just seem off..

@thetwowheeledintrovert3367 Күн бұрын

Household net worth approaching a million, wife and I. Virtually nil savings - defined as cash on hand. Asset ‘rich’ cash poor, as while household income is just over $300k, we aggressively invest our money. If we needed cash quickly, we’d take a loan or dip into equity.

@johnjoihnu3904 6 сағат бұрын

By the time you're 40 you will have a property and your index funds will have gone up in value. Like the video explains the data doesn't break it down by age. You're killing it, keep it up

@Keep_calm_and_slave_on 3 күн бұрын

I’m mad as hell!!! Houses make more money than me

@nitehawk9270 2 күн бұрын

Your name says keep calm 😂

@tikytak21 6 күн бұрын

Gross disposable income, what does that even mean? Just gross income?

@raymondla 6 күн бұрын

Essentially your after tax income

@Skybar23 6 күн бұрын

@@raymondlaI Thought it was called Net income meaning what ever income catches into the net after its been taxed?.

@mymobiledevicerightnow7978 6 күн бұрын

@Skybar23 that is correct, gross is before tax, net is after tax. Also disposable tends to imply left over after all debts/liabilities have been accounted for. The term gross disposable income is incorrect and misleading

@rickdaniels1000 5 күн бұрын

Lol in what universe does the average person 24-34 earn $128,800 and 35-44 earn $147,000 on average Numbers sound very wrong given the average full time wage around the 90s. This has to be based on an average household of around 2 people/dwelling.

@joshcorney6842 5 күн бұрын

Your understanding is wrong. Income figures are for a household and are after tax.

@rickdaniels1000 4 күн бұрын

@@joshcorney6842 no shit it has to be The way it was presented by age group was suggesting it was per person.

@jr800w 5 күн бұрын

So I am in my 40s and despite being so good at my job, having more qualifications than a lot of people, you are telling my I have always been a lower middle income earner? Wtf.

@raymondla 5 күн бұрын

The income figures is based on household income not individual income

@aidenash6157 4 күн бұрын

Im definately not on that pyramid. Id be the soil for the bottom haha

@nitehawk9270 2 күн бұрын

Your Soylent green contribution is noted.

@snoopy13946 5 күн бұрын

Per capita adult wealth is more meaningful than household wealth.

@nitehawk9270 2 күн бұрын

Only if you are a loner that doesn't want family. Or has social anxiety or can't have kids. Or are you referring to adult children living at home due to high house prices ?

@snoopy13946 2 күн бұрын

@@nitehawk9270 household wealth has less meaning because you don’t know how many adults live in the house. It’s a statistical issue. Per capita adult net worth is more accurate.

@lowlife4x424 4 күн бұрын

my wife and i are worth about 1008500

@davesmith1553 5 күн бұрын

$288K income and $3.2m of wealth puts you in the upper class? Not sure where such ideas come from. In Melbourne or Sydney, $3.3m wouldn't even get you a big house in a premium suburb. I know plenty of people who earn $1m+ incomes and I wouldn't necessarily even describe them as upper class -- real upper class is when you have severaltens of millions of dollars in wealth and only work out of choice.

@rickdaniels1000 5 күн бұрын

Hahahah you’re the problem with Australian society. Can’t even interpret basic statistics and always comes back to anecdotes.

@aaronsinspirationdaily4896 4 күн бұрын

You’re confusing “social upper class” with “statistical upper class”. One is an illusion, the other is math. Forget all this stuff and focus on your own journey.

@aussietaipan8700 2 күн бұрын

With 3 mill in net wealth where does that put me?

@nitehawk9270 2 күн бұрын

Upper class, but with inflation if you are retired I would worry.

@aussietaipan8700 Күн бұрын

@@nitehawk9270 Not yet retired

@aloy0128 7 күн бұрын

I am crazy. My personal standard: Lower Middle Class: passive income >= minimal salary Middle: passive income >= median salary Upper middle: passive income >= average salary Real upper: earn multi millions/year and pay 0 tax

@razadaza9651 6 күн бұрын

Net worth usually includes super

@raymondla 5 күн бұрын

Definitely

@razadaza9651 5 күн бұрын

@@raymondla don’t think you mentioned that, unless I missed it

@raymondla 5 күн бұрын

@@razadaza9651 I talked through an example of what networth is at 1:25

@razadaza9651 5 күн бұрын

@@raymondla ok, so I did miss it, cheers

@SprintKing76 3 күн бұрын

I’m so poor I go to KFC to lick other peoples fingers

@Hongsta Күн бұрын

I'm half way to top 20% ... at 35 years old ...my dad is already there at the top 20% easily 😂 I'll be following my in father's shadow for a while lol