Financial independence is now the nation’s most common aspiration (according to Insignia Financials’ inaugural Financial Freedom Report).
Among the Australians surveyed, the top three most common aspirations were achieving financial independence (55 per cent), followed by taking regular holidays (50 per cent), and maintaining a good work/life balance (45 per cent).
Notably, home ownership fell short of making it into the top three listed priorities, with only 45 per cent of respondents considering it their primary focus.
How things have changed… throughout my 20’s, working excessive hours with the goal of becoming a homeowner was the Australian culture. Although this became a reality, in hindsight, there are many things I may have done differently with time and money again. However, I also argue I wouldn’t have achieved what I have professionally without the time investment to develop my skills and career.
Findings in the report also showed Australians are now more inclined to pursue their dream life (60 per cent), over owning their dream home (40 per cent). For me, this is accurate.
More recently, I gave my share of the house I worked hard for to my ex-wife and children. Ultimately, this made becoming a homeowner worth it. Owning my home was not a priority for me anymore. Furthermore, a failed marriage and broken home became the reality for me a few years ago admittedly, partly due to time I invested elsewhere.
Now, I invest time and money into what I too believe is important; a beautiful work/life balance. Although I still work hard, my impact or work time investment is certainly quality over quantity. Traditionally for me, this was the other way around. Or, I was chasing quantity and quality. I have figured out the recipe to have the same output and achieve more, in less time (I will publish something on this later on).
I have no immediate goals to become a home owner again. In addition to business assets, I have invested in a caravan allowing me to travel and work remote regularly while taking the family (fiancé and three kids) with me. At this point in my life, my $100k caravan (lifestyle) is more important than a $2mill home in Sydney.
Lifestyle is an investment or choice worth considering over home ownership. Australians are now deeply aware of their financial wellbeing as it ultimately enables them to achieve the things that matter most to them, whether that be travel, or spending time with loved ones, or both.
Unless you have the objective of looking for capital growth opportunities by building a property portfolio, or perhaps optimise cash flow by claiming depreciation (for investment), I believe the 60% (Aussies choosing to live a dream life over a dream home) will continue to increase. For the majority of Australians, they would either be 1) lying if they would choose a dream home over a dream life or, 2) most of the 40% just don’t realise it yet or may have inherited the culture of owning the dream home as well.
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