Why median matters more than average
Australia's wealth distribution is heavily skewed. The wealthiest 10% of households hold more than 50% of total household wealth. This means the average net worth is significantly higher than the median. For benchmarking your own position, the median is the more meaningful comparison β it tells you the midpoint where half of Australians in your age group have more, and half have less.
What to include (and what to leave out)
Include all financial assets you could reasonably convert to cash or income: superannuation, shares, ETFs, managed funds, property, savings, term deposits, and crypto. For liabilities, include everything you owe: home mortgage, investment loans, HECS-HELP, personal loans, credit cards, car loans, and buy-now-pay-later balances. Vehicles are typically excluded from net worth calculations as they depreciate rapidly, but you can include them under βOther assetsβ if you prefer.
3 ways to grow your net worth
- Maximise super contributions β Salary sacrifice up to the $30,000 concessional cap. At a 37% marginal rate, every $10,000 sacrificed saves $2,200 in tax while growing your retirement balance.
- Reduce high-interest debt first β Credit card debt at 18-22% destroys wealth faster than any investment can build it. Prioritise paying off high-interest liabilities before investing.
- Invest consistently β Dollar-cost averaging into diversified ETFs removes timing risk. Even $200/month compounded at 7.5% grows to $74,000 over 15 years.
