What It Takes To Get Ahead

Times have changed. Once upon a time, the rise in property prices was in line with increases of the average weekly wage. Although today the story is very different. If we compare the average Australian wage to the average property price in Melbourne, we see a great imbalance. Is getting ahead possible with skyrocketing property prices and seemingly static wages?

In 1997, the median price of a house in Camberwell was $360,000. In 2017, prices were over 6 times that, sitting at $2,252,000. The average price of a house in Sunbury was $108,000 in 1997. Now, prices are 5 times that, sitting at $540,000. On average, the price of a property in Melbourne has increased by over 300% in the past 22 years, yet the weekly wage has increased by just 121%, with the average full-time worker in Australia earning $1,633.80 according to the Australian Bureau of Statistics.

There is no doubt that getting a hold of a secure and sustainable future in Melbourne is tough, especially when following the advice of the generations before us. The landscape we are a part of today is vastly different from the playing field that people before us were immersed within. Unfortunately, the old days of focusing on superannuation and retirement are outdated and innovative strategies are being called for. For a comfortable future, we need a comprehensive and detailed plan. We need a plan that begins now as not taking any action is the biggest risk we can take.

How can Australians create wealth and invest money wisely?

Firstly, get the right advice and educate yourself. Find your way to transparent advice from people who do not have a personal conflict of interest. Without education, most of us seem to stay where we are at, doing what we have always done, and unless your financial lenses are polished, the chances of creating wealth and retiring comfortably are out of sight.

Secondly, have a good relationship with your finances, look into how debt works, what getting ahead entails for you and how you can best structure your finances.

Thirdly, plan. Never make financial decisions on a whim. The pillars you put in place now will either be detrimental or highly beneficial for your future. Is it wealth creation or retirement planning that you need to look into? Think long term and remember that all plans have an ending. What is the exit plan of the strategy you are putting in place? Is your plan robust enough to withstand unforeseen economic changes?

Fourthly, make logical and highly informed decisions that set you up for a bright future.

If you are feeling unsure, wait until you are certain before making any decisions.

Research continues to confirm that the current generation of working Australians are facing increasingly difficult circumstances for building wealth and getting ahead.

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