Lucky country
A long Easter weekend ahead, so we spent some time having a swim in the National Park today.
It was interesting to note the mile-long queue for donuts at Kenilworth Bakery on the way through.
Of course, almost every family in Brisbane is up or down the coast this weekend, and this may not be indicative of how the economy is tracking as a whole, but despite everything that's been thrown at the Aussie economy over the past four years, once again it's been remarkably resilient.
Record household wealth
Household wealth increased by +2.8 per cent in the December 2023 quarter, to be +7.8 per cent higher over 2023, at $15.7 trillion.
Amazing!
Share markets, superannuation balances, and property prices are all punching out record highs, and that's before interest rates begin to decline over the next couple of years.
Source: ABS, graphed by Cameron Kusher, REA Group
It's interesting to note that although Australia's stock markets were clobbered by the global financial crisis in 2007 - sending household net worth tumbling from $6 trillion to $5.3 trillion - over time wealth has continued to compound higher.
Lessons from the greatest
It was the great Charlie Munger, so recently passed at 99, who famously said "never interrupt compounding unnecessarily"...and he's a chap who should know.
His business partner Warren Buffett has increased his personal wealth from 'only' US$3 billion at the traditional retirement age of 65 to around US$138.4 billion today.
Read that again! What an arresting thought - through compounding at around 20 per cent per annum, Buffett has amassed 98 per cent of his wealth after the age of 65.
Try applying this to your own current situation: imagine that your wealth could increase by 50x even after retirement just through smart long-term investing.
Wild.
Not interrupting compounding
Most people don't manage to keep compounding their wealth because life gets in the way - a lost job, business, marriage, or loved one, or an emergency which needs funding - or because they lose faith in their investment strategy.
They spend too much time reading about crash and recession forecasts, or try to get the perfect market timing instead of allowing time in the market to do most of the heavy lifting.
To avoid interrupting compounding necessarily, you need a buffer for emergencies, and a solid investment plan which isn't unduly corroded by market commentary or predictions.
---
P.S. Whenever you’re ready…here are 5 ways I can help you manage your own money and go next level wealth:
- Boom or Bust – 20 minute online workshop for investors
Register for my next free online training - Boom or Bust? How to change your investment plan - book in here
You also download a free copy of my e-book The Only 6 Ways to Become Wealthy here.
2. Download our property buying guide
Download our free property buying guide here.
You can also check out a few of our recent property investment purchases here.
Get in contact with us today if strategic property investment is your thing.
3. Subscribe to our Top 10 Podcasts for Investors
Listen in to our podcasts
The Australian Property Podcast is rapidly becoming one of Australia's biggest business podcasts, now with over 30,000 unique listeners per month.
And our popular Low Rates High Returns Show also remains available on Spotify.
4. Subscribe for my free daily blog
Subscribe for my free daily blog with over 3.6 million hits here.
You can also catch up with me daily on Twitter here, where I'm active daily and have over 13,900 followers.
By the way, I'm a 7-times published author on finance and investing, so you can check out some of my books here (next one is due out July 1!).
5. Work with me privately
For a limited time you can book in a free diagnosis call with me here, so book in a call today.
