Yesterday, I wrote a post on The Importance of Enjoying Life Right Now, and ended up doing some interesting research on the lifestyle of Australia. While the post helps you forget about financial woes, I ended up learning a lot about the country overall.
Today, I thought it would be a great idea to do a follow up post about making money in Australia. Just in case you read yesterday’s post and thought it might be a good idea to move there, this post will help shed some light on the financials of doing so.
While the lifestyle is more relaxed, and people generally love sports and enjoyment, the financials will have you packing your bags, or perhaps not…
High Minimum Wage
In the United States, the minimum wage is $7.25. In Australia, it is $16.88! So, you’ll be earning a lot more for what you do? Yes and no. While your dollar does go further in Australia, you’re opportunity seems to be just slightly limited in a broader scale.
If you’re working at the minimum wage, you’ll probably want to pack up your bags and move over to Australia. However, at a national level, the US wins almost everywhere else. The US GDP is $15.6 Trillion. While in Australia, the GDP is merely $1.5 Trillion.
Okay, well the US has a larger population. So, no big deal, right? Actually, the US is also has a higher earnings per capita.
Now, let’s bring it back to what really matters to you. If you’re working in Australia and you want to buy a home, can you do it? How long will it take you to pay off a home? And what will your lifestyle be like?
Buying Homes In Australia
Warning: house flippers may not want to read this. There is recent speculation that the housing market in Australia is entering a bubble. With fast increasing home prices, it is a sellers market. If you’re planning on working at the minimum wage in Australia, you might find that you’re having a hard time saving the money you need to pay for a down payment. Furthermore, you may have a difficult time securing a long. And once you do get a loan, you’ll need an advanced home repayment calculator to see how long it will take you to pay it off. The problem is, with prices escalating, you might find that it takes you many years with higher interest rates to pay off your home.
So, while Australia does have a higher life expectancy, at least for now. The current market conditions might be suggesting a lifestyle somewhere warm in the United States. With a lower priced housing market, now might be the time to sell in Australia and buy in the US.
Yes, you’ll get paid more hourly in Australia. But, it really depends on what you do. Do you plan to work on the minimum wage you whole life? Or, are you interested in taking advantage of business opportunities to take control of your own financial situation? If you’re reading this blog, I would think you fall with the latter like myself. I’ll be staying in the United States, but won’t be earning a minimum wage. Will you?