Survey says two thirds of us reckon we’ll never be wealthy… and here come the numbers to prove it
Special Report: Crypto wealth platform Dacxi has done a bit of a ring-around, and discovered that the bulk of Australian adults aren’t feeling the love when it comes to whether we’ll ever be wealthy.
In a recent survey, which spoke to a bunch of people about their feelings and their wallets and how they feel about their bank balances, research gurus YouGov found that about two thirds of adult Australians have the feeling that they’re never going to be wealthy.
Crypto wealth platform company Dacxi commissioned the survey, essentially to take the temperature of the common man (and woman, or course) about the thoughts and fears that lie in their hearts about their financial future, to help them ensure they had their own platform working the way their investors want it to.
The survey results are, to be honest, a little on the bleak side. Underpinning the statement about the falling likelihood that we’re never going to be wealthy is a mixed ideal of what that somewhat nebulous concept actually looks like.
Two in five (40%) Australian adults defined “being wealthy” as earning over $150,000 per year after tax – which is clearly a pretty good wicket, and a decent target to aim at… provided you’re in an industry that pays that sort of money.
Meanwhile, more than one in three (36%) see wealthy as having a net worth over $1 million, and nearly a quarter (23%) categorised it simply as owning a home outright – something that used to be as commonplace as a Kingswood up the driveway.
For even more pessimism, we need look no further than the paths most of those Australians reckon will deliver us to the land of milk and honey, in time for us to hang up our spurs, shake off the worker’s shackles and yokes, and settle into the comfy couch of daytime telly that is retirement.
Nearly a quarter of those they talked to (24%) reckon that the best way to be wealthy, is to start wealthy – seeing how wealth is often inherited, just like male pattern balding and crooked teeth.
A further 18% say that owning property is the way to go, and nearly a quarter of people saw tipping money into the high-risk end of the market as the key to getting rich.
In other words, we have a choice between starting rich, building a time machine and going back to when property was even remotely affordable, or get a hot tip on a likely-looking lithium speccie, drop the family nest-egg on it and hope for the best.
Dacxi CEO Ian Lowe is outspoken about the results of the survey, and underscores the forces that are driving the unhappy sentiment among the majority of Aussies.
“It would be unfair to say Australians have given up entirely on being wealthy, but many are having to readjust expectations for what their retirements might look like based on how previous generations have lived past the age of 65,” Lowe says.
“What’s clear is that the impact of generational wealth is becoming more stark, and that Australians who aren’t waiting for an inheritance and who aren’t already in the property market don’t have a lot of hope of attaining wealth in their lifetime.”
All of this points to making some serious investment choices for the money that we do have – because while generational wealth is a fine thing, it’s not something that we all have access to.
So, Dacxi did some digging and learnt some valuable insights into how – and why – Australians like to invest.
Spoiler alert: Men and women often have very different ideas on how it’s meant to be done.
It should come as precisely zero surprise that when it comes to taking on risk, it’s men who have the largest appetite.
On the topic of asset choices, it’s the fellas that are more likely than women to invest in Australian stocks/shares (38% compared to 28%), precious metals (19% compared to 14%), International stocks/shares (19% compared to 12%) and cryptocurrency (15% compared to 10%).
It’s that last sector of the investment choices that have got a lot of people talking, and considering whether now’s the right time to to start thinking about investing in the riskier end of the market.
But the recent bloodbath in the crypto world is likely to put anyone but the hardened end of the gambling spectrum off the idea of getting into investments where those who dare can secure some very solid returns if they time things just right – or if they have a helping hand to guide them through the process.
“The best performing assets of the last decade have been the more volatile ones, like cryptocurrency and stocks/shares,” Lowe says.
“With Australian men more likely to choose these assets over women, we can explain a lot of the gap in confidence to become wealthy between men and women in their asset choices.”
But either way, there are plenty of other barriers to entry into the more tech-based investment areas. It’s lucky for the younger generations that, being so-called “digital natives”, they’re better placed to see those areas as a legitimate place to put their money, if it’s done just right and the risks are mitigated.
“Ultimately, the big advantage younger generations have is that they can purchase digital or tokenised versions of physical assets like gold and silver as easily as they can a cryptocurrency,” Lowe says.
“Over the long term (multiple decades), diversified portfolios fare best, and it’s never been cheaper or easier to buy and manage one yourself.”
So, as pessimistic and gloomy as Australian adults are, reaching the goal of being wealthy isn’t completely out of reach, and there are options – like Dacxi’s platform – for those who are prepared to put in a little time, ask the right questions and then get into a market where they’ve got a fighting chance to get some dollars in the piggy bank, in time to put their feet up once they hit retirement.