Australians reveal how they became millionaires - and the big thing they all have in common

The surprising number of millionaires across the country has been revealed, and there is one big thing many of them have in common.

A new report has revealed the surprising number of millionaires currently residing in Australia - and there one a big thing the majority of them have in common.

Finder’s Wealth Building Report 2024 has found that one in eight Australians are millionaires, which is one of the highest figures globally and one that is expected to rise sharply over the next five years.

It comes as the financial comparison site commissioned a survey of more than 1000 Australians who are actively increasing their wealth through investments in various assets.

The report found that, of the millionaires across the country, a significant number have landed the title simply due to the growing value of their homes.

When the value of the principal place of residence is removed from net wealth calculations, the number of millionaires in the country drops to five per cent of Australian adults.

The fact that such a significant number of Australians are considered “millionaires” purely because of skyrocketing property values is another grim realisation for young Aussies struggling to even get on the property ladder.

Of the millionaires across the country, a significant number have landed the title simply due to the growing value of their homes. Picture: NCA NewsWire / Max Mason-Hubers

Graham Cooke, head of consumer research at Finder, said the country’s obsession with property means the market will continue to remain “robust”, making it an increasingly difficult goal for young people to reach.

“The government incentivises investment in property, which pushes up prices, and will mean that property will likely continue to remain a very expensive asset,” he told news.com.au.

Mr Cooke said this means that many young people will need to rely on the Bank of Mum and Dad to get started.

“Of course, this is a resource that is not available to everyone. If your parents never owned their home, it is even harder for you to afford one yourself,” he said.

“Having said that, a high-interest world does mean high interest on savings, making working towards saving a deposit a worthwhile focus.

“Young Aussies should keep an eye out for higher ongoing interest rates from the online banks for best returns.”

Those surveyed credited budgeting and investing frequently as the top two habits they implemented to accumulate wealth.

The country’s obsession with property means the market will continue to remain ‘robust’. Picture: NewsWire / Nicholas Eagar

Of those making money from investments, nearly one in 10 said paying off debt contributed the most to building their net wealth.

More than half of investors expect their net wealth to increase over the next 12 months.

Australian investors who have more than $1 million in net wealth are much more likely to have at least one passive income source, with 85 per cent of them earning interest on their savings, compared to just 48 per cent of Australians who don’t invest.

Sarah Megginson, personal finance expert at Finder, said everyday Aussies want to know how higher earners have achieved their financial security and what practical steps they can take to do the same.

“A lot of the habits and tactics of the rich are very practical things that can be implemented no matter how much you earn,” she said.

“Reaching that coveted millionaire status might feel out of reach, but many investors started with nothing.

“Starting with accessible options like ETFs, looking into the tax benefits and suitability of salary sacrificing, or saving an extra amount every week can make a big difference when compounded over years and decades.

“Building wealth is a marathon, not a sprint. The sooner you cross the starting line, the better off you will be later in the race.”

Originally published as Australians reveal how they became millionaires - and the big thing they all have in common