Finder’s Sarah Megginson urged people to assess their income, everyday bills and expenses and set realistic goals. (Source: Supplied\/Getty) <\/p>\n
For many Australians, earning a six-figure salary<\/a> used to mean you had \u201cmade it\u201d and were well-off in your career. But with the cost of living<\/a>, including rents and mortgages, groceries<\/a> and bills, skyrocketing, new research has laid bare just how much that amount has blown out.<\/p>\n The average Australian now needs to earn $389,118 a year to feel rich<\/a>, research by Finder found. That\u2019s up more than $50,000 from three years ago.<\/p>\n Finder personal finance expert Sarah Megginson told Yahoo Finance this figure was in stark contrast to the amount the average person was actually earning<\/a>.<\/p>\n RELATED<\/p>\n \u201cWhile social media can make us feel inadequate, the reality is that the average Australian earns just over $60,000 \u2013 a far cry from the $400,000 some might aspire to,\u201d she said.<\/p>\n Men thought they needed to be earning even more to be considered rich<\/a> at $393,438, while women thought they needed to be putting away $384,424.<\/p>\n There was also a generational divide<\/a>, with Millennials needing the most money to feel rich by a long shot at $470,881. That’s compared to $273,648 for Baby Boomers, $351,793 for Gen Z, and $416,067 for Gen X.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n Megginson said the divide could be down to Millennials and Gen X being faced with the strain of homeownership, childcare, education costs and retirement planning<\/a>.<\/p>\n Baby Boomers are more likely to be financially secure and have lower living costs, while Gen Z may still live at home or in share houses.<\/p>\n A Yahoo Finance poll of nearly 950 readers found 44 per cent thought $100,000 was not a “good” salary and people now needed much more. A fifth thought it was a good amount as it was more than the average, while 37 per cent thought it was good but wasn’t worth as much<\/a>.<\/p>\n Australia\u2019s Consumer Price Index<\/a> rose 3.8 per cent in the 12 months to October, up from 3.6 per cent in September. The biggest price rises were seen in housing, food and non-alcoholic beverages, and recreation and culture.<\/p>\n Separate Finder research found the average Australian in December had an impressive $43,666 in cash savings<\/a>. That was up from $40,195 in December last year.<\/p>\n Men reported having higher savings at $53,300, while women had nearly half of that at $27,529. Generationally, Baby Boomers naturally reported having the most at $50,352.<\/p>\n That trended down by age, with Gen X having $49,855, Millennials at $40,038, and Gen Z at $21,326.<\/p>\n While the figures may seem high, Finder\u2019s data also found 43 per cent of Australians had less than $1,000 in savings during the month.<\/p>\n Megginson urged Aussies to focus on realistic financial goals and great money management skills<\/a>.<\/p>\n \u201cLook at how much you earn and what your everyday bills and expenses are so you know how much you can afford to spend on luxuries,\u201d she told Yahoo Finance.<\/p>\n \u201cUsing free budgeting tools is a great way to track spending and set a realistic budget, which can help you build your savings.\u201d<\/p>\n Finder\u2019s data showed the average Aussie was saving $892 per month in December, or over $200 a week.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n