Travel, pay off all your existing debt or help a friend or family member in need are just some of the things people said they would do should they be spontaneously gifted a huge sum of cash.
Short of winning big on a lucky scratchie or TattsLotto ticket, a large windfall of cash isn’t something any of us is expecting to happen anytime soon. Regardless, the desire to be financially free to do those things persists. So, how much would the average Australian need to be financially free to do as they please?
According to a new survey done by National Australia Bank, $830,000 is the magic number that would solve money problems and provide financial freedom to Australians.
NAB Group Chief Economist Alan Oster was quoted in the release, saying:
“Many Australians dream of a major financial windfall to change their lives – but it turns out we don’t need a mega-million dollar jackpot to feel financially free. For some, being ‘financially free’ means being able to pay off all their debts. For others, it could be no longer having to earn a salary, or just not being stressed about money. Unsurprisingly, where you live, how much you earn, your gender, and your relationship status impact how much you think you will need.”
According to the report, this is how much money you will need to reach financial freedom, according to the state you live in, gender and income.
Residents of New South Wales and Australian Capital Territory said they needed $1 million, while Tasmanians sat at the other end of the scale with $337,000. If you’re a Victorian, $788,000 would do you just fine, and Queenslanders think they need $683,000.
South Australians and those from the Northern Territory said they would need $809,000, while Western Australians requested $736,000. Overall, the average worked out to be about $830,000 for the average Australian.
However, results fluctuated between income and gender. High income earners on more than $100,000 a year believe they need $978,000, while those in the second highest income category of $75,000 to $100,000 think they need about $1.2 million.
When it comes to gender, men said they need $899,000, while women said they require $759,000.
The survey also asked how they would spend their money, and 36 per cent of Australians said they would pay off their debt, 36 per cent said they would save it or help their families, 28 per cent would travel, 20 per cent would invest it, and just 19 per cent would use it for emergencies. In fact, just one per cent of Australians said they would spend their newfound cash on luxury personal items and only four per cent said they would work less or retire.
I think we better pick up a lotto ticket on our way home..