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The typical Australian considers an income of $152,775 as favorable.
Australians currently believe that they must earn substantially more than the typical salary to enjoy a comfortable lifestyle.
According to financial comparison group Finder, Australians claim they need an annual income of $152,775 to afford life’s basic necessities.
The mean annual earnings for full-time employment in Australia amount to $102,742.
Sarah Megginson, an expert in personal finance, noted that unmanageable housing costs are a issue.
cost of living
The crisis has reshaped salary expectations.
‘a salary of $100,000, which was previously seen as a standard for a decent lifestyle, nowadays frequently seems more like an essential minimum threshold, particularly within large urban areas,’ she stated.
‘Persistent
inflation
And a significant rise in real estate values has altered perspectives, with many individuals now believing that a mid-six-figure salary no longer offers the same degree of financial security as it used to.
Gen Z adults, who were born starting from 1997, consider $177,212 as sufficient income, whereas Millennials, born between 1981 and 1996, feel that $152,402 would be enough for them.
Generation X, which includes individuals born between 1965 and 1980, considered $148,602 to be a favorable amount when compared to the $126,938 deemed adequate by Baby Boomers, who were born between 1946 and 1964.
The survey of 1,012 Australians conducted in January explored opinions on the amount individuals believed was necessary to make ends meet without experiencing financial strain.
Regarding a comfortable salary sufficient enough to cover additional luxuries such as periodic international vacations, Australians had higher aspirations, considering $164,577 as the threshold income.
Generation Z considered $198,880 as the income needed for an improved lifestyle, whereas Millennials thought $176,150 would suffice. Generation X set their threshold at $161,231, and Baby boomers only required $106,474.
Ms Megginson stated that Australians across various income brackets should reassess their non-essential expenditures, which range from subscribing to streaming services to dining out at restaurants.
“If you think your funds aren’t stretching far enough, it’s time to take control,” she stated.
Begin by examining your bank account and credit card statements to identify your spending habits and determine areas where you can reduce expenses.
‘By halting unused subscription services, curbing impulsive purchases, and preparing meals at home more often, you can rapidly boost your savings.’
Despite the decrease in petrol and electricity costs, services inflation remains an issue in Australia. This has been somewhat mitigated by the government’s $300 power rebates.
The cost of insurance rose by 5.4 percent this year, which is over twice the general inflation rate of 2.4 percent.
The most effective method for reducing expenses is to switch service providers.
Ms Megginson advised checking whether you are overpaying for essential services such as electricity, insurance, and your mobile phone plan.
‘If your company hasn’t switched providers over the past year, you’re likely overspending and could have a great chance to cut costs.’
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