Australia has spoken and we finally know how much you need to earn to be considered “rich” in 2023.
With the rising cost of living, soaring interest rates and high inflation, the idea of being “rich” is likely something that seems very far away for the average Aussie.
More than 50,000 Australians recently participated in news.com.au’s Great Aussie Debate survey.
Participants answered 50 questions, revealing their opinions on everything from work and politics to using your phone on the loo and wearing shorts in the office.
One of the questions asked was what salary you need to earn to be considered rich in Australia in 2023.
It turns out that figure is anything over $250,000 – or an average of $303,000.
More than 55 per cent of the people surveyed chose this option, with 19.6 per cent choosing an income between $200,000 and $250,000 and 15.9 per cent saying between $150,000 and $200,000.
This is a far cry from the $94,000 salary that the average Aussie earns, according to the Australian Bureau of Statistics.
For 6.7 per cent of Aussies, $100,000 to $150,000 is enough to be considered wealthy, while just 2.6 per cent would be happy with $80,000 to $100,000.
The average figure differed between age groups, with those in the 40-49 age bracket more likely to think you need a higher amount to be considered rich, with a salary of $315,000.
Younger Aussies had the lowest average salary that they thought made a person wealthy, at $250,000.
NSW residents had the highest expectation for what is considered rich out of all the states and territories, with an average answer of $312,000.
Sarah Megginson, money expert at Finder, told news.com.au earlier this year that being “rich” in this tough economic environment is almost impossible.
“The amount of money you need to earn in order to pay your bills and live comfortably is really different to the amount you need to feel rich,” she explained.
Still, Ms Megginson says if you have a buffer in these inflated times you are doing better then most.
“The baseline test is different for everyone, but basically if you add up all of your everyday expenses and bills, then add a buffer of 10-20 per cent – then that’s the wage you need to earn to be comfortable and not suffer in the current economy,” she said.
As part of the Great Aussie Debate survey, participants were also asked to reveal how much money they have in savings and, while many are feeling the pinch of the current economic situation, there are plenty of people that have back up funds available.
Of the Aussies who took the survey, 23.6 per cent – or 12,000 people – have more than $50,000 in their savings account.
Slightly less people, 16.6 per cent, have between $5000 and $20,000 saved, 8.8 per cent have between $1000 and $8000 and just 5.5 per cent have between $500 and $1000.
There were also a number of Aussies who revealed they are just scraping by each month, with more than 4400 people saying they had no money saved but were “making ends meet”.
There were participants who found themselves in an even worse situation, with 4.5 per cent revealing they were getting into worse debt every single month.
The results showed that men were more likely to have savings of $50,000 and above – 32 per cent – compared to 20 per cent of women.
Women were also more likely to have $0 in their savings, with 18 per cent choosing this option compared to 13 per cent of men.
Younger Aussies were the least likely group to have more than $50,000 in the bank, with 17 per cent choosing this option compared to 25 per cent of people aged 30-49.
Those living in the ACT had the highest amount of savings, with an average of $32,600, while those in the Northern Territory had the lowest amount of $25,800.