![]() Mr Phelps, director of consultancy Golden Eggs, said the national savings rate is just 1.1 per cent of income. ![]() “And so, we feel we need to earn to feel like we’re getting ahead.” When they reach a six-figure income, many people learn that “the more we earn, the more we tend to spend”, he added. “In Sydney, our most expensive capital, the average price for a house is now $1.37 million, requiring an outrageous $220,000 household income to be able to afford an 80 per cent loan, versus $140,000 for the average capital city,” Mr Phelps said. Money coach and author Max Phelps said a salary of $100,000 only produces a borrowing capacity of about $500,000, which is “a fraction” of the average home price. Someone earning $100,000 a year in an expensive city like Sydney might still live pay check to pay check. Mr Rankin agreed with the Reddit poster’s sentiment that earning $100,000 isn’t really what it once was. “In the race between inflation and wages – so far, at least – inflation is winning.” “Although wages have been growing at their fastest rate since the noughties, inflation means that our disposable incomes are actually shrinking. “A salary of $100,000 or more used to be considered an achievement, but it’s now more of a need than a want for many people,” Mr Rankin said. Those not earning six-figure incomes would likely look with disdain at internet complaints about how tough things can be.īut is the grass really that much greener?ĭavid Rankin is an award-winning personal finance consultant, author and the director of Sort My Money, and said the notion of a ‘high salary’ has shifted dramatically in recent years. The median full-time salary as of 2022 is a fair chunk less at about $78,000 gross, according to the Australian Bureau of Statistics.īut, as the 2021 Census showed, plenty of people earn below that amount – about 9.6 million of them. ![]() Indeed, landing a job that pays $100,000 would put someone in the top 20 per cent of income earners in Australia. Back home we’re looking at 30-60k and it’s just not cutting it, especially after the recent rent explosion.”Īnother noted that for many people on low incomes, a $100,000 salary would be viewed as “unfathomably rich”. “I always knew I made a lot, but a decent number of my friends are city folk that make low 100s. On the other side of the debate, one user disagreed and spoke of recently receiving “a smack in the face I needed to remember my privilege” when visiting the town they grew up in. One commenter said they knew people on six-figures, living in very high cost-of-living areas, who needed to share a home with flatmates to cope with the soaring cost of housing. Account for inflation, a $100,000 back in 2000 would be the equivalent of $180,000 now.
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