ASX shares investors say being debt-free and owning a home are their most important definitions of financial success, according to new research.
These are the findings of a survey conducted by online trading platform Stake in May.
Stake surveyed more than 2,000 Australian investors who held either ASX shares or overseas stocks.
The most popular definition of financial success was being debt-free, according to 86% of respondents.
It's likely that being debt-free is even more appealing during today's cost-of-living crisis!
Owning a home was the second most popular definition of financial success, with 85% of respondents agreeing that this was a key aspiration.
Debt-free home ownership is considered essential for a comfortable lifestyle in retirement in Australia.
But as we all know, getting into the property market can be difficult for many reasons.
One of them is that values continue to rise faster than most people can save a deposit. For example, in FY24, the median home price rose by $59,000, according to CoreLogic data.
On top of that, 13 interest rate rises between May 2022 and November 2023 have made it not only difficult to service a loan but also hard to get finance in the first place.
When assessing loan applications, banks typically add a 3% serviceability buffer. This means most customers today have to prove they can afford an interest rate of 8% or 9% to get a home loan.
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What are the other definitions of financial success?
The third most popular definition of financial success, with 77% support among ASX shares investors, was being able to live in an area of their choosing.
This definition may reflect the compromises people are making in the property market as values continue to increase and buyers are forced to seek more affordable accommodation.
The fourth most desired milestone of financial success is having the capacity to support family members. Three-quarters of survey respondents said this represented financial success to them.
This reflects the rising role that the Bank of Mum and Dad is playing in Australia's property market.
Finally, the fifth most common definition of success among ASX shares investors is having the flexibility to reduce working hours, or quit altogether, and live off one's investments.
If you also aspire to this, check out this article by my colleague Sebastian: How much cash do you need to quit work and live off ASX dividend income?
You can also check out these 7 tips for successful ASX shares investing.
Which ASX shares are attractive to investors today?
The Stake survey explored the top investment themes exciting ASX shares investors today.
Gold was at the top of the list. This was not surprising given the year that ASX gold stocks had in FY24.
The top three ASX 200 mining shares for price growth last financial year were all gold stocks.
The survey also revealed the five most popular ASX shares bought by investors over the 12 months to May.
They included ASX lithium share Pilbara Minerals Ltd (ASX: PLS) and the Vanguard Australian Shares Index ETF (ASX: VAS).
On Tuesday, S&P/ASX All Ordinaries Index (ASX: XAO) shares are down 0.16%.
