I’m sure you have heard of the saying that the rich are getting richer? According to a new report by Credit Suisse, this has never been more true. And the reason for this?
The rich own assets that are appreciating in value. Particularly equities which have had a strong recent growth period.
It’s always a great year to be alive, but if you are in the top 1% of wealth holders in the world, this last year has been pretty good for you. The top 1% of the wealthy now control over 50.4% of the world’s household wealth. And the top 10%, own 87.7% of all assets.
So what does it take to qualify for the top 10% or 1%? It might surprise you.
If you have net assets (value of all assets including you home, less any debt) of more than $759,900 USD (~$1.052M AUD) then you make the hallowed 1% list. To qualify for the top 10% is a bit easier, you only need $68,500 USD (~$95,000 AUD). And to be in the top half of the world’s wealthy? You qualify at just $3,210 USD (~$4,500 AUD).
The report says that 71% of the world’s adult population, has less than $10,000 USD in wealth.
For mine, these are extraordinary numbers. These figures show an extraordinary disparity in average wealth per adult person. I wonder why there is so much disparity among so much abundance?
Most wealth is concentrated in the USA & Europe, though for the first time, the number of Chinese who are considered middle class is now the largest in the world, at 109 million people. This is on the back of a fivefold increase in Chinese wealth since the beginning of this century. If you live in a country that has a first world economy, chances are, you will qualify for at least the top 10% of wealth owners in the world.
Based on the $760,000 USD qualifying level to be in the top 1%, I think many people in Australia, simply by virtue of owning just one quality piece of real estate, will make it.
Consider then how lucky you are to live in the country you are in.
You have every opportunity to create a level of wealth that by world standards could easily have you in the top 10% of the world’s wealthy and with a little more planning, effort and time, a place in the top 1% can be yours.
I’m not suggesting that the journey to wealth is a race and that you can win by having a high score.
I am saying that you may not have considered how fortunate you are if you are living in a country like Australia.
And one of the keys to wealth that can’t be measured is you need to be grateful for what you have. Another is to share a little of what you have. This sends a message to your sub-conscious self that you have plenty and there is more on the way. The richest of the rich do this regularly – sometimes you know about it and sometimes you don’t ever hear about the incredible acts of philanthropy made by rich people.
Now might be a good time for some sharing. If you don’t already have a good cause to give to, you might consider helping people all over the world own their own home.
Habitat for Humanity is a global charitable organization that has been around for many years, building homes, communities and hope. Their vision is a world where everyone has a safe and decent place to live. If this aligns with your beliefs and you want to help, have a look through their website here – www.habitat.org.au.
The simple lesson from the extensive research conducted by Credit Suisse on the world’s wealth is this – if you want to be wealthy, you must own assets that appreciate in value. Wages are not going to get you there.