The luckiest country in the world

The luckiest country in the world

“DownUnder” bucks the global trend to come out on top as world’s richest

Whilst America and Europe are harbouring concerns about “GFC Part Two” or a double dip recession, one little country has plenty of reason to celebrate.

At around 3% of the world population, Australia’s population footprint is tiny, but this “blip” on the radar for people is actually a “blimp” on the radar for wealth.

Australia is now ranked as the world’s wealthiest nation by a Credit Suisse re

The average Aussie is now worth almost US$250 000 net, around 400% wealthier than the average US citizen. The proportion of Australian adults worth more than $US100,000 is now eight times the global average.port, citing Aussie wealth figures far in excess of Japan, Singapore, Switzerland, UK and the USA.

The high wealth rate in Australia is attributed to the strong Australian dollar, property ownership levels and a robust labour market. It could also be said that most Australians were not as caught up in soaring debt, sub-prime loans and massive expenditure such as had been observed in the US and some European countries pre-GFC.

Australians have become wealthier in actual dollar terms, increasing by 300%-400% in a decade, even after adjusting for the improved Australian dollar and the fall in the $US.

“It can be hard for people to tell who is truly rich when they are looking at perceived wealth rather than net wealth,” says Australian wealth coach Jeremy Britton. “We may see the image of the so-called ‘wealthy’ in Ferraris and Porches without realising that many of these people may be leasing the expensive car with a high income and may not actually have much money in savings or investment.”

Britton says that the rising popularity of being “green” has also helped Aussies to save and accumulate money. “Helping the environment by recycling things in business and in the home has cut spending, leading to more actual held profits, both in the corporate world and in our own homes.”

“Of course, Australia has benefited greatly from its mining boom and our relationship with China, but an increased income is no good unless you actually save it and invest it. It would have been very easy for cashed-up Aussies to spend their fortunes frivolously, but most seemed to have accumulated the money quite well, compared to other nations. ”

The Australian Bureau of Statistics (ABS) classifies someone as a millionaire only if they have more than $1 Million in “investable assets” such as cash, shares or property equity. Figures of those who are making higher-than average incomes do not necessarily show any correlation to net wealth.

The most recent ABS figures show that the average combined value of a true millionaire’s cars are only $36 000. This would seem to suggest that most Aussie millionaires do not drive cars worth more than a small house, and it may suggest that frugality, rather than flashiness, is one of the keys to true wealth.

Jeremy Britton is an independent wealth coach & business coach. He is often found on the beach, Facebook, or www.24HourWealthCoach.com.

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