How much money is enough?

How will you know when you are rich?

How much money is enough? money happniess

When I was young I wanted to be a millionaire by the age of 30.

One million dollars was a lot of money then.

By the way… I didn’t make it – I wasn’t a millionaire by 30, but I did own a significant multimillion-dollar property portfolio by the time I was 40.

However, $1 million today isn’t what it was back in my youth.

Show me the money

Can you guess what magic number most Aussies would consider themselves to be “rich”?

It’s a lot more than one million dollars!

According to a survey by, men need an average of $5.9 million to feel rich, while women were a bit more conservative and believed that $4.8 million would do the job nicely.

Those figures are in stark contrast to about 30 or 40 years ago when being a “millionaire” was considered to be the epitome of wealth.

Why the big difference?  

Obviously inflation has had an impact with prices of everything increasing every year which means we need more money to live an above average existence.

And of course rising house prices have also played their part with the median house price in Sydney hovering near the $1 million mark and not far behind in Melbourne either.

An interesting result in the survey was that parents of children under the age of 10 dreamed about having $3.7 million in the bank, while those with teenagers said that they’d need about $8.2 million to be considered rich!

Should I stay… or should I stay?

Why was there such a big discrepancy between parents of small children and parents of teenagers?

The truth of the matter is more young people are staying at home for longer and eating into their parents’ future wealth savings

In fact, the 2016 Census found that about a quarter of the Millennial generation (those born between 1982 and 1999) still lived the parental household.

It’s not surprising that almost three quarters of 18 year olds still live with their parents but it may surprise you just under 8% of 30 year olds still live in the family home.

I guess that’s why demographer Bernard Salt calls them KIPPERS – kids in parent’s pockets eroding retirement savings.

Back in my day, we generally moved out of home as soon as we could to make the most of all of that wonderful freedom that beckoned.

Of course, house prices were cheaper then, but they seemed expensive for us and the banks used to make you jump through hoops to get a loan then – much the same as a they are today.

Wealth creation reality

The fact of the matter is that you will probably need much more money that you can ever save to have a comfortable retirement.

And if your savings are eroded for an extra 10 years or more because children are staying at home longer, how do you think your retirement will look?

Probably not overly pretty! calculator coin money save debt

The question then becomes how can you ensure that you’ll have “enough” money when your twilight years come calling to make sure you can live out your life in the same style as you did when you were working?

The answer is you’ll need to build a cash machine of assets during your working life that will see you through your golden years and the best way I know how to do that is to build a substantial portfolio of investment grade properties throughout your working life to set yourself up for a lucrative retirement rather than a lacklustre one.

You see… most of the money you will have when you retire will not be money you have saved, nor the money you earned or even the funds that you invested.

It will be the capital growth of your assets – plain and simple. money piggy bank smart save savings

Becoming wealthy happens slowly for the vast majority of people.

In fact, financial success is about getting rich slow.

So, whether you want to have $3 million or $8 million in the bank when you stop working, you have to start investing today to give yourself the very best chance of achieving that goal.

Time is of the essence in successful property investment.

And that means investing for tomorrow today – with or without children still under your roof.

What can you do to become rich?

If you’re looking at buying your next home or investment property here’s 3 ways we can help you:

Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.

Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.


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Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

'How much money is enough?' have 2 comments


    October 20, 2017 Matthew

    Hi Michael,

    I’m inclined to agree with your summary in your article here.

    Obviously the answer to the question, “how much money is enough?” is most likely to be “more!” 🙂

    But, joking aside and taking out the effect of the kippers concept, I’m interested in your thoughts on what you mean by “having $X million dollars in the bank” .
    Do you mean amassing a property portfolio over time, then selling, and therefore having $X million actual cash ?
    Or, do you mean having a Net Worth – eg Property value(s) minus loans/debts = virtual on paper $X million – and therefore most likely have both cash flow via rents AND still own the (hopefully) appreciating assets ?
    Or perhaps a combination of both ?



      Michael Yardney

      October 20, 2017 Michael Yardney

      No I wouldn’t sell up Mathew. I’m talking about your net equity


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