Less than five percent of Australians are millionaires, yet it seem that most of us want to be. What makes you think that you’ll be one of the minority? What makes you different to 95% of Australians?
In a client meeting this morning something was said that reminded me how our nature is to measure ourselves against our observations of the experiences of those around us. I was also reminded how those observations influences our choices and behaviours.
For example, if it seems that most people can afford a plasma TV or the latest iPod then I guess we can allocate money to those purchases too. Or, if it seems that no-one we know has started planning and saving for their retirement then we don’t need to bother either.
But are the people we know around us really an appropriate role model for our financial behaviours?
Many of us seem to dream of being millionaires and wealthy enough to afford whatever we want. (It is no wonder that lotteries are booming.) However, most people never actually achieve this level of financial freedom.
Data released this morning by the Australian Bureau of Statistics demonstrates that less than five percent of Australians have net wealth in the millions. This has barely changed since the last data release despite the booming economic conditions over the past five years.
(I define Net Wealth to be the sum of your investment assets less the sum of all of your liabilities. It is your Net Wealth that creates your financial independence, not your net worth.)
So, if you too dream of becoming a millionaire with abundant choice and financial freedom what are you doing differently than most other people?
What different (rare) mindset and behaviours do you have that will place you among the 5%?
If you are benchmarking your progress against those you know around you, are they leading you to a future where you miss your personal lifestyle goals?
Can you find new benchmarks and role models that will lead you to be a member of the 1 in 20 financial elite?