Where does your networth put you guys and do you think savings rate is the most important factor needed to move up into the upper class? 💰

@mitchh3879

Ай бұрын

How about you, Raymond?

@Dreamer10888

Ай бұрын

@@mitchh3879yea , please tell and I’ll tell

@AzuraLOL

Ай бұрын

Net worth puts myself and my partner as Lower Middle Class $220kish, Disposable income around 200k so where does that put us haha

@Dreamer10888

Ай бұрын

you asked us where we fit, you should reveal yours too?

@Dreamer10888

Ай бұрын

@@mitchh3879 i really hate people who asks for personal info but refuse to divulge their own info

thank you for data Raymond. love the clear explanation.

Paid off HECS, finally in the positive and slowly building wealth. Thank you for your wonderfully clear explanation 😊

@raymondla

Ай бұрын

You got this!

@glennrao2341

Ай бұрын

Well done!! Keep going!!👏👏👏

Thank you very much for this very interesting video. I’ve learned a lot😊

@raymondla

Ай бұрын

Glad it was helpful!

Interesting video, thanks. Note, the term 'Millennials' refers to the generation that were born in the previous century but became adults in the new millennium, although some bring this range forward a little to 1980, including McCrindle. This means the youngest Gen Xers are 44 years old in 2024, not 35 (who would be Gen Y/Millennials).

@__Michelle__

15 күн бұрын

I was annoyed enough when we were re-branded from Gen Y to Millennials but to be called a Gen X-er hurts 😅

I think you missed an important point with savings. If you are earning less money, almost all of it is being spent on non discretionary spending. For these classes, there are little opportunities to save money. As for me, I have always been in a position to save money and had the opportunity to purchase a house over 20yrs ago. Having the benefit of a huge increase in property values, combined with no debt, has catapulted my net wealth. For the next generation, this is almost an impossible dream.

Stop comparing your self with others its not healthy. Set goals and achieve them and a standard of living your striving for. There will always be people better and worse off then your self.

According to the numbers I am upper middle. That is in large part due to two strokes of financial good fortune. 1. I bought Afterpay when it first floated and sold the lot for $400k and used it to buy a $700k house. 2. I was left a substantial inheritance and paid off the mortgage. Now my house is valued at $1.1m. However I consider myself even more lucky because I am only 33 and clear $3.1k a fortnight. I have been building a huge super balance for 3 years straight. I think classes like those above are a tool but not blanket useful. As I have so much disposable income due to having no mortgage and no kids sometimes I have more money than some lawyers at my firm who earn $400k+ but have a huge mansion to pay off and kids at private school

@djand007

7 күн бұрын

$3.1k a fortnight at a firm with lawyers or as a lawyer? If a lawyer best ask for a pay rise, to keep up with the blue collar union workers at least, or put it some OT to help out.

Thanks, Good info

@raymondla

Ай бұрын

Glad it was helpful!

We are halfway between the top 2 tiers and are younger Gen Xrs. The odd thing about our household is that our combined income is closer to the bottom 2 tiers due to personal circumstances. Fortunately, unlike my partner, I have always actively been saving and investing.

The definition of the lower class is "The lower class is typified by poverty, homelessness, and unemployment. People of this class, few of whom have finished high school, suffer from lack of medical care, adequate housing and food, decent clothing, safety, and vocational training." Its unlikely anyone with a HECS debt is in the lower class. Breaking up the population into percentiles is reasonable, but it is a point in time metric and this needs to be understood to make sense of the data.

Data was back in 21-22, 3 years inflation is a lot to consider. Also within top 20%, figure goes up exponentially, probably top 20% of the top 20% should be considered real upper class.

Wow, we are close to breaking into upper middle class as a single earner family of 5. Wife and I are aged, 31 and 33

@raymondla

Ай бұрын

That's a commendable effort on a single income household!

@Northstar2000

Ай бұрын

Thanks mate, i like your channel

@ManthanPandYEAH

Ай бұрын

How !!? What’s ur secret

@Dreamer10888

27 күн бұрын

I’m sorry hard to believe

@EveryoneWhoUsesThisTV

16 күн бұрын

Stats and categories can only get us so far. :) I'm earning less than the 'poverty' wage, but I'm quite comfortable in my middle-class world, and will finish paying off my mortgage within five years. Attitude and lifestyle are just as impactful as income, the differences in 'classes' are mostly differences in lifestyle and saving/spending habits....

Some people are so focused on salary and status that they forget to enjoy life and just want to buy a new car to look wealthy.

Thanks for the video. My partner and I are 21 and 22 respectively. We make about 130k gross combined and have a networth of ~380k

@Dreamer10888

Ай бұрын

That’s lovely, you guys are so young and sharing a wonderful life and earning a lot for your age

@raymondla

Ай бұрын

Nice work you guys are killing it at such a young age!

So interesting. Lower middle here according to this.

Someone doesn’t understand class in Australia, it’s not to do with what you earn.

@mushy111

18 күн бұрын

Which is probably why he focuses more on net worth as an indicator rather than what you earn

The upper class are in your words ‘good at saving’ because they do not have to use most or all of their income to keep a roof over their head or food on the table.

economic capital is not the same as social capital. i would argue a professional classical musician, an artist, an academic, or a scientist is a low earning but high social capital profession, who would be considered as being of a higher class than a plumber who earns three times as much and invested sensibly.

mine is weird as in I dont really fit into either low or lower middle class as a single person. My networth is about 160k Annual Gross income 97k I dont have any debts nor own a house and dont have any savings thus far.

As time goes on the path to wealth in Australia will predominantly through inheritance. You can't expect someone born in the year 2000 to be saving enough to outpace the growth in the housing market.

@nitehawk9270

28 күн бұрын

Only fans or fansly is the path government has given our kids. Completely disgusting. And no I have never dropped a dollar on that. It shouldn't be rewarded.

Wife and i are 30 and 29 houshold 210k however don't think our net worth anywhere near the 1m range haha, i think hkusing prices are pretty high thougj so our house worth 620 k now and were paying it off fast! Roughly 400k remaining. Sometimes you want to be older due to this however wishing away being young is never good, we just gotta enjoy the process

Net worth of Upper Middle, savings of Middle, and income of Lower Middle... So I dunno where I sit. 🤷🏻‍♂️

We a half way between the upper middle class and the upper class, not bad for someone who was born in 1985 and failed high school.

@glennrao2341

Ай бұрын

Well done!!!👏👏👏

@Dreamer10888

Ай бұрын

Self praise is no praise

@timallen2892

Ай бұрын

@Dreamer10888 your right. I will tell my wife that I made $65,000 for a month, and all she will say is. "What is that all you work 6 day a week from 7am to 12am didn't see the boys for that"

@timallen2892

Ай бұрын

@Dreamer10888 your right. I will make $65,000 in a month, and the wife will say, "Is that all"

@Dreamer10888

Ай бұрын

@@timallen2892 yes that is inspiring, thank you for sharing. I just assumed you were in the building industry

You certainly do not need to earn the high salary to gain entry into the higher net worth class groupings. Learning the magic of compounding is important and time invested in income producing assets.

True Upper class is top 0.1%, not 20% haha

@glennrao2341

Ай бұрын

Agree!

@anth1839

Ай бұрын

You would be surprised there is a lot of people with alot of money around that's for sure!

@lexi4442

26 күн бұрын

Incorrect the term used for them is the “ultra “ high net worth individual

Im spread across the top 3 based on your video. My net worth would be higher if I bought a house instead of travelling a lot, but im happy with my choices 🙏

Upper middle class & Upperclass is also the brackets where the employment situations can be blurry & you’ll find unregistered & unlicensed local pharmaceutical & medicinal suppliers, white collar law evaders, life long trickers of tax &or individuals & people gifted loopholes from family & associates

@djand007

7 күн бұрын

Then there’s a whole unclassified class above the upperclass which is where you basically find all the individuals who live outside the laws & otherwise go through life basically able to do as they please, or what people call the elites. These are the pedos, bankers (as in owners of), former government pets of mentioned, & extremely successful white collar criminals for all prior mentioned 👹

Panicking. Will be 34 this year, around 30k in super, 20k in debt and 5k emergency cash. about 3k in brokerage. no property or other assets. Recent immigrant though, so started well behind. 110k income in sydney, so hcol making it very hard to save. Scary times ahead.

@pinkelephant4591

15 күн бұрын

What do you mean by disposable income here? Do you mean after paying bills and mortgage?

@TejasBelvalkar

11 күн бұрын

Haha same here… but one you get married/ have a partner your income effectively doubles.

Rarely does wealth depend solely on good financial habits and discipline. Much depends on the playing field you start with, and in particular your parents, even if you don’t have wealthy parents- if they have enough to give you a secure start- including a quiet place to study at home, you will go a lot further than an overcrowded home where there is no corner you can be by yourself.

I wish people would stop with the class classification when it comes to how much someone earns and what their net worth is. We now use low income, middle income, and high income. Its less derogatory towards the people who aren't the Joneses. Even working class, Blue Collar, and White Collar are far less degrading. Net Worth means squat if you are in debt up to your eyeballs. You could be earning $250K and have a $1mil debt which means you are broke, just as broke as any low income person. Only we don't have debt because we aren't that stupid

We are definitely in the top 20% with assets which surprised me, but having been low to average income earners often on one income while we raised 5 kids and 7 foster kids, our story is more unusual. We made our money by renovating and investing in property both in our own name and in smsf. Its not what you earn, but what you do with it.

Are your numbers (the networth etc.) per household (family) or per capita (individual). If it is per household, Australia is not so doing well.

@raymondla

Ай бұрын

The numbers are per household

@mjmf1430

Ай бұрын

In Singapore, these net worth figures would be closer to per capita, particularly for the upper quintiles.

@Dreamer10888

Ай бұрын

No one cares, Australia is still the place to be, not Europe, not Asia, and definitely not America …. If you haven’t been here before you would be amazed as to how well off a lot of people are here.

@Dreamer10888

Ай бұрын

@@mjmf1430Singapore’s population is too tiny to care, no one in Australia cares about sg until we have to stopover there.

@man8god

Ай бұрын

Singapore is a very wealthy country

Interesting stats.... :) But net worth isn't a factor in Upper, Middle & Lower Class, there are plenty of toffs without two bob to rub together and also hoarder slobs with secret fortunes. It's more about lifestyle and how you were raised, values etc Do you have a reflex to save money, or do you rush to spend it at the bottle shop? Did your parents run their own business and teach you how it's done? Have you spent your life educating yourself and improving your skills? It's more an upbringing and lifestyle thing..... (HECS is only a liability if you intend to repay it, you don't need to repay it, I have zero plans to repay my HECS)

Is gross household income pretax or after tax?

@raymondla

Ай бұрын

Gross household is aftertax

@Dreamer10888

Ай бұрын

@@raymondlait’s before

I fall somewhere between upper middle and upper. I'm surprised how low the number is to be classed that...

@sophitsa79

15 күн бұрын

Wealthy people often don't realise how wealthy they are and think they need more. This is why they're often not liked by those who are less wealthy. A bit of gratitude and awareness of the world around you would be fabulous. It'll also be better for your mental health

This video has depressed me, as I thought I was doing better than I actually learned I am after watching this!

@thetwowheeledintrovert3367

27 күн бұрын

These are headline figures, much of this is impacted by where you live and how net worth is actually made up. Let’s say ‘Fred’ lives in a state capital and his home is worth 2 million dollars - and makes up the bulk of his net worth. ‘Mary’ has a similar net worth but lives in regional Australia, house is worth $600,000, and the rest of her net worth is in investments. In my books Fred is in trouble, while the bulk of Mary’s net worth is in income generating investments - and is well off. Remember too, comparing yourself to others is a pathway to ruin. You do you.

Is disposable income your after tax income, or your after tax income leftover after all your expenses?

@raymondla

Ай бұрын

It's your after tax income only

Between middle class and upper middle class at 33yo. Guess we have to grind even more.

In the original definition of assets, savings is included, but then later when you're defining the quintiles you're separating out savings from assets. This is a bit confusing

@raymondla

15 күн бұрын

The savings for the quintiles are what they are on average saving each year, it's not a representation of the total savings they have.

The question is do you have class or not, most of us regardless of wealth do not

The class concept and Australia don't really go together.

@agentsnorlson7913

17 күн бұрын

We tell ourselves this but it's absolutely true. Go to Mosman and then swing by Mt Druitt.

imagine being wealthy enough to ask if you're poor

I guess I'm an unconventional middle to upper class now. Bought a house at the right time that I have since paid off and has gone up in value over the years, plus super and shares but I'm an unskilled worker on 50k and have almost zero in savings cause I still have a student loan.

@Dreamer10888

27 күн бұрын

Nice one

Do you think its an accurate reprsentation to include super as part of your assets in networth in Australia? Most won't have access to this until 65+

@raymondla

Ай бұрын

Yes, superannuation is still your money even if you don’t have access to it till later in life.

Can you please define "disposable income"? In the video you displayed income which I'm guessing was not household income (it seemed too low) but you kept saying "disposable income".

@raymondla

Ай бұрын

The ABS defines the following terms: Disposable income = gross income less taxes on income Gross income = Defined as private income plus government pensions and allowances (social assistance benefits in cash)

@jack12343

Ай бұрын

@@raymondla thanks, this all makes a lot more sense now!

Do you count your house as a negative towards your networth though? Like if you have a $250k net worth but have a $500k mortgage wouldn’t your networth be -$250k?

@mitchh3879

Ай бұрын

Yes. Net worth = assets - liabilities. Liabilities include home loans.

@raymondla

Ай бұрын

Yes you do count your liabilities such as your mortgage. But if you have a mortgage you would also have equity in the house from your house deposit, so your net worth wouldn’t be negative.

@DavePiredda

Ай бұрын

Net worth would not be negative however since the value of the home also needs to be included i.e. $500,000 home value less $250,000 mortgage = net worth of +$250,000

@msbhv_jin

Ай бұрын

That would be calculated in your net worth. So if your house is worth 800k and you have 500k mortgage, your networth would be 300k

Net worth != class.

It is better to use a term other than "class" for these wealth strata. "Class" has too many other interpretations

After watching this video, I feel much better knowing that I am not that rich. lol

Supposedly I’m Upper Class by net worth and savings. I live in a cheap outer suburb, retired early 40’s, income is purely from investments and less than $60k per year with 3 kids. I’m rich in time.

@life_and_motion

Ай бұрын

Similar to myself mid to upper in worth but I allow a frugal income from investments and have no debt.

@Dreamer10888

27 күн бұрын

Ur a lazy c

u sure these statistics are correct? that figure for 128k for millenials is off. unless they were referring to a couple and not an individual. Abs notes that this is only about 14% of the population of that age (based on 2022 data). i seriously doubt wages have gone up to the point where even the healivy skewed average of 128k is reasonable for that age group.

@rickdaniels1000

Ай бұрын

Yeah it seems very wrong to me. The average full time wage in Australia now sits at 98,000 for one person gross of tax. Income stats from the ABS are usually based on households and include part time workers too. The only real way to benchmark wages is OTE annualised salary including super before tax.

Depends where you are living a very standard 4 bdrm house in the middle of bumfucknowhere of sydney costs 1mil

@Dreamer10888

27 күн бұрын

Yea, u need to have net worth $3m to be middle here

So we don’t have Class in Australia but a lot of Australians are rich because of their assets like properties but at the same time they would also have big mortgages to pay. Rich but network poor but rich when they sell their assets because of capital gains. Not clear cut 😂

The middle class should be the biggest segment of the population

Ok, I have 85k in the bank, 70k in index funds and 90k in my super. With a 15k car that would put me at at 260k net worth. I have an income of 152k. So I am somewhere in the lower middle? Honestly I don’t know how someone can have a 500k net worth with only 20k in savings. I may only be in my late 20s but I thought I was well ahead. Most of my friends have never had more than 5-10k in their bank and are paying off 50k car loans. Not to come off as a jerk but these numbers in the video just seem off..

@thetwowheeledintrovert3367

27 күн бұрын

Household net worth approaching a million, wife and I. Virtually nil savings - defined as cash on hand. Asset ‘rich’ cash poor, as while household income is just over $300k, we aggressively invest our money. If we needed cash quickly, we’d take a loan or dip into equity.

@johnjoihnu3904

26 күн бұрын

By the time you're 40 you will have a property and your index funds will have gone up in value. Like the video explains the data doesn't break it down by age. You're killing it, keep it up

@locky4809

25 күн бұрын

@@johnjoihnu3904 thankyou for the reply, all the best!

Gross disposable income, what does that even mean? Just gross income?

@raymondla

Ай бұрын

Essentially your after tax income

@Skybar23

Ай бұрын

​@@raymondlaI Thought it was called Net income meaning what ever income catches into the net after its been taxed?.

@mymobiledevicerightnow7978

Ай бұрын

​@Skybar23 that is correct, gross is before tax, net is after tax. Also disposable tends to imply left over after all debts/liabilities have been accounted for. The term gross disposable income is incorrect and misleading

So I am in my 40s and despite being so good at my job, having more qualifications than a lot of people, you are telling my I have always been a lower middle income earner? Wtf.

@raymondla

Ай бұрын

The income figures is based on household income not individual income

Lol in what universe does the average person 24-34 earn $128,800 and 35-44 earn $147,000 on average Numbers sound very wrong given the average full time wage around the 90s. This has to be based on an average household of around 2 people/dwelling.

@joshcorney6842

Ай бұрын

Your understanding is wrong. Income figures are for a household and are after tax.

@rickdaniels1000

Ай бұрын

@@joshcorney6842 no shit it has to be The way it was presented by age group was suggesting it was per person.

$288K income and $3.2m of wealth puts you in the upper class? Not sure where such ideas come from. In Melbourne or Sydney, $3.3m wouldn't even get you a big house in a premium suburb. I know plenty of people who earn $1m+ incomes and I wouldn't necessarily even describe them as upper class -- real upper class is when you have severaltens of millions of dollars in wealth and only work out of choice.

@rickdaniels1000

Ай бұрын

Hahahah you’re the problem with Australian society. Can’t even interpret basic statistics and always comes back to anecdotes.

@aaronsinspirationdaily4896

Ай бұрын

You’re confusing “social upper class” with “statistical upper class”. One is an illusion, the other is math. Forget all this stuff and focus on your own journey.

I’m mad as hell!!! Houses make more money than me

@nitehawk9270

28 күн бұрын

Your name says keep calm 😂

With 3 mill in net wealth where does that put me?

@nitehawk9270

28 күн бұрын

Upper class, but with inflation if you are retired I would worry.

@aussietaipan8700

27 күн бұрын

@@nitehawk9270 Not yet retired

Per capita adult wealth is more meaningful than household wealth.

@nitehawk9270

28 күн бұрын

Only if you are a loner that doesn't want family. Or has social anxiety or can't have kids. Or are you referring to adult children living at home due to high house prices ?

@snoopy13946

28 күн бұрын

@@nitehawk9270 household wealth has less meaning because you don’t know how many adults live in the house. It’s a statistical issue. Per capita adult net worth is more accurate.

my wife and i are worth about 1008500

Im definately not on that pyramid. Id be the soil for the bottom haha

@nitehawk9270

28 күн бұрын

Your Soylent green contribution is noted.

I object to the use of the word 'class'. It implies that someone who is in a higher class than someone else is a more valuable person. They may have more wealth; but, we are all socially equal. Call me a nit picky winger but I think that is critical!

@rickreeder2412

14 күн бұрын

Partly right here, but generally speaking higher classes have access to education, travel and circles which could elevate them higher socially

I am crazy. My personal standard: Lower Middle Class: passive income >= minimal salary Middle: passive income >= median salary Upper middle: passive income >= average salary Real upper: earn multi millions/year and pay 0 tax

There is so very very much wrong with this video. 1. there is no such thing as the middle class. It is a construct devised to divide workers. 2. only classes that matter are: capitalist or worker. If most of your income is derived from working. You are working class. If you derive your income from assets primarily. You are a capitalist. This is the ONLY material difference that matters overall. Don't forget this.

Class is not a measure of wealth. It never has been. Cashed up bogans are not middle class, they are working class people with money.

Sitting in under middle class, but feeling much more worse off than I was before Labor took government.

Yes I’m poor

Net worth usually includes super

@raymondla

Ай бұрын

Definitely

@razadaza9651

Ай бұрын

@@raymondla don’t think you mentioned that, unless I missed it

@raymondla

Ай бұрын

@@razadaza9651 I talked through an example of what networth is at 1:25

@razadaza9651

Ай бұрын

@@raymondla ok, so I did miss it, cheers

I’m so poor I go to KFC to lick other peoples fingers

Someone who can afford rent?

So what you are saying is. . . . . . . . I'm fucked

Net worth is how many kids or grandkids you have. Money is just a tool to achieve it.

I'm half way to top 20% ... at 35 years old ...my dad is already there at the top 20% easily 😂 I'll be following my in father's shadow for a while lol