According to the Finder Wealth Building Report 2024, approximately 2.8 million Australians, which is about 13% of the population, are classified as millionaires. This figure presents Australia among the nations with the highest millionaire ratios worldwide but tempers are advised. The wealth boom is largely attributed to substantial increases in home prices rather than diverse investment strategies.
A more nuanced look at the data shows that if the primary residence's value isn't considered, the millionaire count considerably drops to 1.1 million. This decrease means just 5% of Australian adults maintain millionaire status without their home's worth as part of their assets.
Analyzing the factors leading to their wealth, the report highlights budgeting and regular investment as pivotal. “Astonishingly, 1 in 8 Australians (13%) – roughly 2.8 million people – are millionaires,” notes Finder, with its projection firmly favoring continued growth over the next five years, as financial habits align with possibilities evoked by loan diversifications and investment in multiple asset classes.
A part of the millionaire formula also involves minimizing liabilities. Almost 10% credit debt repayment as the crucial step in their wealth accumulation journey. The findings align with prevailing financial advice that encouraging effective debt management plans aids in wealth leverage.
Crucially, those with millionaire status most often complement their assets with passive income channels. An overwhelming 85% of those classified as having a net wealth exceeding a million dollars accrue interest from savings or related instruments, a stark contrast to the 48% among those who do not actively invest.
The confidence in anticipated financial enhancement is evident, as a significant portion of these investors, 58%, foresee an increase in their net wealth within the coming year. This outlook suggests continued leveraging of real estate alongside strategic financial planning to secure and enhance their wealth.
