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.

Media contact +61410 468378

We wish you a Frugal Christmas

Former years have seen rises in personal wealth (or the illusion of it), with rises in share markets and property prices but 2010 saw mostly rises in unemployment and dramatic rises in interest rates. Two of the Big Four banks raised their interest rates higher than the Reserve Bank; time to vote with your feet, Australia!

Considering that the festive holiday season (regardless of your religious beliefs) was originally said to be all about Jesus, we can always claim to be following biblical precedent when we are frugal at Christmas.

Consider that 2000 years ago, according to tradition, God gave the world a small baby who was destined to be the saviour of the world. God did not send Rambo or Chuck Norris to save the Palestinians from Roman slavery, nor did he give a billion buckets of gold. The baby in a manger was a seedling gift of hope.

In honour of this tradition, we suggest that you give a small gift that means big things will come. Spread some frugality this year and also help to spread HOPE for the New Year. 2011 just has to be better than 2010, right?

1. Blooming great gift: Consider a few packets of seeds instead of a bouquet of flowers. They are cheaper to send through the post & will grow in value over the next few months, unlike flowers which will wilt & die within a few days. Those in small apartments or units can be given something small for a window box or movable planter pots. Also consider edible treats such as fruits or vegetables. There are also many species of flowers which are safe to eat, such as chrysanthemums, roses, daisies and more; check with the nursery and deliver something beautiful, tasty and practical!

2. Handmade Gifts: homemade jams and other homemade baked goods from the talented ladies and something creative from the talented blokes. Recycle some old household goods or get carving, whittling, gluing or wiring. Nothing says Christmas love like investing your precious time (not just your money) into a gift. We once received a model aeroplane made from empty beer cans and one created from old wooden clothes pegs. Novel, fun and a good talking point.

3. Newspaper Gift Wrapping: Wrap children's birthday gifts in old comics for a fun twist. A fancy red ribbon would go nicely with black and white newsprint for adults, or even "brown paper packages tied up with string" for a “Mary (Poppins) Christmas”.

4. Christmas Presence: Giving someone your time is a very valuable thing and memories last a long time. You could give a couple the gift of a night off by babysitting their kids, or you could pack a picnic basket for a single friend to have an afternoon together chatting and drinking wine in an unusual location. Most mums would love an hour of housework done while they relax in the bath and dad would love for his car to be cleaned or shed tidied.

Whatever you decide, keep it simple, practical and keep the love central to your theme. Holiday seasons are all about spending time with family, friends and loved ones, not spending money for the profits of big banks, toy companies and retail stores.


Jeremy Britton is an independent wealth adviser. For more tips, tricks & advice go to www.24hourwealthcoach.com. Article also featured in Strike publications, Ipswich City News