Financial position of a 30yr old?

[Tyler Durden]

Thanks everyone for your responses.

I was more interested in "would" than "should". Perhaps put another way, let's say you put together all 30yr olds in the Australian population, and plucked one out - how much net savings would this person have?

Anyway, I can see this thread has created some interesting side issues, so hopefully it produces more constructive input/experiences/stories

 

[prawn_86]

I was more interested in "would" than "should". Perhaps put another way, let's say you put together all 30yr olds in the Australian population, and plucked one out - how much net savings would this person have?

Based on most of the 30 year olds i know i would say, on average, zero through to maybe 50k paid off a mortgage for a house they bought just cause they felt like it with not much research

Anecdotal only, i could be completely wrong

 

[Tyler Durden]

Based on most of the 30 year olds i know i would say, on average, zero through to maybe 50k paid off a mortgage for a house they bought just cause they felt like it with not much research

Anecdotal only, i could be completely wrong

Thanks prawn, anecdotal is exactly what I'm after

 

[craft]

I was more interested in "would" than "should". Perhaps put another way, let's say you put together all 30yr olds in the Australian population, and plucked one out - how much net savings would this person have?

Lots of other statistics along similar lines here.

http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/DBE855896D8CA36DCA2578FB0018533C/$File/65230_2009-10.pdf

 

[prawn_86]

View attachment 49580

Lots of other statistics along similar lines here.

http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/DBE855896D8CA36DCA2578FB0018533C/$File/65230_2009-10.pdf

I havent looked at the report to get the definitions, but i find it hard to beleive that the 'average' 25-34yo household has a net worth of 260k. That would mean they have been saving, or paying off a house with their entire disposable income for over 5 whole years of their life...

Something doesnt seem right there to me... I'm assuming that these 'net worth' figures take into account cars, furniture etc etc

EDIT found what they call 'net worth' but still find it hard to beleive the average 30yo household has 260k worth of net worth:

39 Net worth, often referred to as wealth, is the value of a household's assets less the
value of its liabilities. Assets can take many forms including:
! produced tangible fixed assets that are used repeatedly and for more than one year,
such as dwellings and their contents, vehicles, and machinery and equipment used
in businesses owned by households
! intangible fixed assets such as computer software and artistic originals
! business inventories of goods
! non-produced assets such as land
! financial assets such as bank deposits, shares, superannuation account balances, and
the outstanding value of loans made to other households or businesses.

40 Liabilities are primarily the value of loans outstanding including:
! credit card debt
! mortgages
investment loans
! borrowings from other households
! debt on other loans such as personal loans to purchase vehicles, and study loans.

 

[craft]

I havent looked at the report to get the definitions, but i find it hard to beleive that the 'average' 25-34yo household has a net worth of 260k. That would mean they have been saving, or paying off a house with their entire disposable income for over 5 whole years of their life...

Something doesnt seem right there to me... I'm assuming that these 'net worth' figures take into account cars, furniture etc etc

EDIT found what they call 'net worth' but still find it hard to beleive the average 30yo household has 260k worth of net worth:

The median of 142K is probably more representative for a 30 year old as the reported range is 25-34. The mean is probably skewed by the older households.

Data is from ‘Survey of Income and Housing’ conducted by ABS lots of resources spent on asking the questions and compiling the data – how accurate – who knows, but probably better then a small handful of anecdotal cases that we are personally exposed to.

 

[Smurf1976]

Based on anecdotal evidence I'd say that anything over $50K in net assets excluding super and HECS debt is unusual.

A reasonable car, paid a tiny bit off the house or have a small deposit and that's about it apart from superannuation.

For me personally, it was roughly zero at age 29 and owned my house outright at age 35. That was on one income by the way, not two. Suffice to say I've been there, done that so far as working long hours - kept up the 70+ hours a week for years. Christmas Day, New Year's Eve, Easter, public holidays worked them all.

I know others who did much the same. Got a job in a factory etc and took as many shifts as the company would allow. Get the house paid off in full then go and get an easier job somewhere else working 9 to 5.

 

[rryall]

I have very much enjoyed reading this thread as I have just recently turned 29. I'm always curious as to whether I'm ahead or behind in the rat race. As some have already said a lot depends on the individual - I have been at university for 8 years so I have only really been able to start saving in the last couple of years.

I think I'm relatively happy with where I'm financially when compared to a large majority of my friends but I think I have a much higher level of expectations of life in general.

 

[gav]

View attachment 49580

Lots of other statistics along similar lines here.

http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/DBE855896D8CA36DCA2578FB0018533C/$File/65230_2009-10.pdf

Im 29 and my fiance is 31. We are slightly above the "median" for household net worth in the graph above. 5 years ago we had nothing, and my fiance only started working full time 2 years ago.

 

[sptrawler]

It all boils down to the individual, not the economy.
It has always been difficult for young people to break into the housing market in capital cities.
Most people want to live there so it is very much geared to what the market can afford. Therefore it follows that young people on lower wages can only afford outer suburbs.
The only ways to overcome that are either save more deposit for an inner suburb, or go bush, and save more for an inner suburb.
The other option is to accept a starter home that you can afford, do improvements, fix up the garden, enjoy the holidays with your kids and move to the inner suburbs when you can afford it.

 

[TMC93]

I feel it has more to do with the person rather than the upbringing, of course a good education helps but if you are willing to work hard you have a better chance of having more money saved than a city brat who takes the money they are given for advantage.

I am not 30 yet but when i left at school at 17 i moved back home, worked hard and saved even harder. At 19 i had a 15% deposit on a $380,000 house in inner city Mackay. I had it paid down in 4 years. While most of my mates with degrees/honours/pieces of paper had nothing but a hex bill and a small room at their parents house. 5 years later not much has changed and i feel that they never really got in control of their debt which removed their drive to save money.

I liked working because i got something at the end of each week to show for my hard work, on the other hand all they got was more homework. (totally biased view as i hated school)

Not really answering your question but some food for thought.

 

[stevier95]

I feel it has more to do with the person rather than the upbringing, of course a good education helps but if you are willing to work hard you have a better chance of having more money saved than a city brat who takes the money they are given for advantage.

I am not 30 yet but when i left at school at 17 i moved back home, worked hard and saved even harder. At 19 i had a 15% deposit on a $380,000 house in inner city Mackay. I had it paid down in 4 years. While most of my mates with degrees/honours/pieces of paper had nothing but a hex bill and a small room at their parents house. 5 years later not much has changed and i feel that they never really got in control of their debt which removed their drive to save money.

I liked working because i got something at the end of each week to show for my hard work, on the other hand all they got was more homework. (totally biased view as i hated school)

Not really answering your question but some food for thought.

Can i ask what you did when you left school?
Thats really impressive!

 

[Bill M]

I feel it has more to do with the person rather than the upbringing, of course a good education helps but if you are willing to work hard you have a better chance of having more money saved than a city brat who takes the money they are given for advantage.

I am not 30 yet but when i left at school at 17 i moved back home, worked hard and saved even harder. At 19 i had a 15% deposit on a $380,000 house in inner city Mackay. I had it paid down in 4 years. While most of my mates with degrees/honours/pieces of paper had nothing but a hex bill and a small room at their parents house. 5 years later not much has changed and i feel that they never really got in control of their debt which removed their drive to save money.

I liked working because i got something at the end of each week to show for my hard work, on the other hand all they got was more homework. (totally biased view as i hated school)

Not really answering your question but some food for thought.

You sound like me in a lot of ways. I didn't even do HSC but went to TAFE and did an apprenticeship. Then I quit my trade for a non descript job and worked hard and invested in a business. I was then successful in that business and sold it and then I retired early. My brother who's got diplomas and degrees coming out of rear end is still working and he is 8 years older than me. Well done TMC93!