Australians are “financially better off”, irrespective of rising inflation, than they were 100 years ago, according to national insurance company, Budget Direct.
The insurer analysed data from the last century and said rental prices had tripled and petrol also rapidly increased, but “due to correlating increases in income”, as household income significantly increased, everything was therefore “more affordable”.
Budget Direct said weekly income for the average Australian in 1910 was equivalent income to $197.86 per week today, whereas average income in “2030 would be equivalent to $2,815 a week”.
It found that in I910, almost half of the average wage was required for rent payments. But today, rent required “a smaller portion” of the average wage.
“Even food stables have become more affordable, taking average weekly wages and inflation into account,” the paper said.
However, their data suggested that house prices had increased faster than both inflation and wages.
Budget Direct said in 2030 it would take five years to save for a deposit.
The company’s director of partnerships and communication, Brad Seymour, said he understands that Australians feel their wages stretched further amid the increasing cost of living and inflation, but, “as a generation, we’re getting better value for money in many areas”.
“We’re so caught up in the day-to-day spending, it’s easy to feel like we’re not getting value for money on our hard-earned cash,” Seymour said.
