More Australians are prioritising financial independence over owning a home
Australians’ priorities are shifting, with homeownership losing its prominence as people prioritise their desired lifestyle over owning a home.
According to Insignia Financial's Financial Freedom Report, over half of Australians (55%) now prioritise financial independence as their top goal. Financial freedom is defined as having sufficient passive income from sources such as investments or savings to cover daily expenses and achieve an ideal life without being reliant on employment, according to a report by The Australian.
The desire to travel has also been reinforced by Australians after experiencing confinement during the pandemic, with 50% of respondents stating that regular holidays are a priority. Owning a home now shares equal importance with maintaining a good work-life balance, with 45% of those surveyed considering it their primary aspiration, The Australian reported.
Renato Mota, CEO of Insignia Financial, said that this shift in priorities has occurred due to the impacts of COVID-19 and the increasing cost of living, which have influenced people's short-term behaviours. Mota said that Australians have reprioritised their life goals from traditional homeownership dreams to living their desired lifestyle, despite economic pressures.
Differing priorities
Different age groups have distinct top aspirations, the report found. Amid record-high housing prices, 63% of Generation Z (aged 13-27) prioritised owning their own home. For Generation Y (aged 28-42), 54% sought a good work-life balance as their primary goal.
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Older Australians from Generation X (aged 43-57) and the Baby Boomers (aged 58-76) were more focused on financial independence rather than homeownership and work-life balance, The Australian reported. Among those in their later years, over half prioritised taking regular holidays.
As the cost-of-living crisis impacts Australians' disposable income, there is a growing appetite for enhanced financial literacy, Insignia Financial found. One in five respondents (22%) expressed dissatisfaction with their financial situation, and 55% reported being only somewhat or slightly satisfied.
To address this, 58% of respondents wanted to improve their money management skills, and 63% said they were dedicating more time and effort to increase their financial knowledge compared to a year ago.
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