⚠️ Important Disclaimer

Note: Personal educational content only — not official church material.

I am not a licensed financial planner. This is general educational material only — it doesn’t consider your personal objectives, financial situation, or needs.

We won’t dive deeply into generosity today—the focus is on core financial stewardship systems (earning, saving, investing, protection). But generosity isn’t something to “wait for until rich.” You can (and should!) practise it now. Managing your finances well will increase your capacity to give even more generously in the future.

Optional passages to reflect on later (read in full context): Proverbs 11:24–25; Proverbs 30:8–9; Luke 12:15; Luke 16:13; Acts 20:35; 2 Corinthians 9:6–8; 1 Timothy 5:8; 1 Timothy 6:17–19.

Useful for ~80% of people ~80% of the time (principles + habits).
Before acting: confirm with your parents, guardian, accountant, or a licensed adviser.
Numbers are illustrative; laws, rates, and thresholds change.
You are responsible for your own decisions — proceed thoughtfully.

Treat this as a starting framework. Personal circumstances may justify different choices.

Your Financial Future Starts Now

A Smart Investment Guide for Your 20s

$1M+ Potential retirement savings by starting at 20

40+ Years of compound growth

10% Of income to save for wealth

The choices you make now build habits of wise stewardship that can fuel future generosity and service.

🧠 Quick Knowledge Check

Test your understanding with these quick questions.

Question 1: What will $100/month become in 40 years at 7% growth?

Question 2: What's the ideal age to start investing?

💭 Reflection Questions:

What does wise financial stewardship look like for you personally?
What would you do with your time if money wasn't a concern?
How could building wealth help you serve others better?

💡 Myths vs Reality

Let's bust some common money myths that hold young people back.

❌ MYTH

"You need $10,000 to start investing"

✅ REALITY

You can invest as little as $10 in Betashares Direct. Super contributions can be any amount.

❌ MYTH

"Super is enough for retirement"

✅ REALITY

Super + extra savings = security. Super alone may not fund your desired lifestyle.

❌ MYTH

"Property always goes up in value"

✅ REALITY

Property can be great, but is illiquid. And diversification across property + shares + other assets reduces risk.

❌ MYTH

"I need to pick winning stocks"

✅ REALITY

Index ETFs buy the whole market automatically. You win when the economy grows—no stock picking needed.

❌ MYTH

"I'm too young to worry about money"

✅ REALITY

Your 20s are THE time to build wealth. Every year you delay costs you tens of thousands later.

Key Insight: Simple beats complex. Broad beats narrow. Early beats late. Consistent beats perfect.

Confirm any change in investment structure or product selection with your parents, accountant or a licensed financial adviser before actioning.

🤔 "But I Can't Afford To Invest..."

Let's tackle the most common concerns head-on.

😰 "I don't earn enough to invest"

Even $50/month = $132K+ over 40 years at 7% growth. Small amounts compound into large sums.

💡

Try this: Start with whatever you can—even $25/week. Increase it by $10 every few months.

🎉 "I need money for social life"

If you save 10%, you still have 90% to spend! Budget for fun—just make wealth-building automatic first.

💡

Try this: Set up automatic investing on payday, then spend the rest guilt-free.

📉 "Investing seems too risky"

NOT investing is riskier long-term. Inflation erodes cash. You have 40+ years to ride out market ups and downs.

💡

Try this: Start with broad index ETFs—they spread risk across hundreds of companies.

🎓 "I have student debt to pay off"

HELP/HECS has low indexation. High-interest debt (credit cards) comes first, but you can often invest alongside HELP.

💡

Try this: Pay minimums on HELP, prioritize credit card debt, then start investing.

Remember: Every excuse delays compound interest. Start small, start now, scale up later.

Confirm investing approach (amounts, platforms, products) with your parents, accountant or a licensed financial adviser before actioning.

🕰️ Retirement Is Inevitable

Retirement will come. Plan early so future you (and your family) are secure.

Reality: The Age Pension is a safety net, not a lifestyle.

Fewer workers per retiree: Was 15+:1 long ago, heading toward ~3:1. More pressure on government support.
We live longer: Your money may need to last 30 years once retired.
Sacrifice now beats sacrifice later: A little saving now avoids a lot of stress later.
Responsibility: Provide for yourself so you can be generous and not a burden.

Takeaway: Get started. Small and consistent steps.

Confirm retirement planning assumptions and contribution strategies with your parents, accountant or a licensed financial adviser before actioning.

📊 See the Power of Starting Early

Compound Interest Calculator

Monthly Savings ($)

Expected Return (%)

Years to Invest

$786,341

Total contributed: $192,000 | Interest earned: $594,341

What If I Start Later?

Select Starting Age 20

Slide to see the projected impact of delaying your start at current settings.

Age 20 Baseline: —
Age 20 Start: —
Lost Growth: —

Assumes constant monthly savings & constant nominal return & ignoring tax. Real (inflation-adjusted) differences would be smaller, but still material.

Starting Age	Monthly Savings	Years Investing	Total Contributed	Final Amount	Difference
20 years old	$400	47	$225,600	$1,754,551	+$0
25 years old	$400	42	$201,600	$1,217,486	-$537,065
30 years old	$400	37	$177,600	$838,622	-$915,929

External tool: MoneySmart Compound Interest Calculator

⏰ Why Your 20s Are Your Financial Superpower

📈

Compound Interest Magic

Starting 10 years earlier can add hundreds of thousands. Time does the heavy lifting.

🎯

Higher Risk Tolerance

You have decades to recover from dips. That lets you hold more growth assets calmly.

🏠

Property Ladder Entry

Even a small first place builds equity and leverage over time.

💪

Build Wealth Habits

Creating financial discipline in your 20s sets the foundation for lifelong wealth building.

💼

Career Upside

Investing early lowers money stress so you can focus on skills and purpose.

🧠

Learning Momentum

Early small mistakes become cheap lessons. Knowledge compounds too.

🧾 Rule #1: Spend Less Than You Earn

Your direction is decided here. Stewardship starts with margin.

1. The Overspender

Spends > earns.
Debt + stress grows.
Becomes a burden.

2. The Break-Even

Spends = earns.
No buffer / fragile.
Hard to give / provide.

3. The Steward

Spends < earns.
Builds buffer + invests.
Can give + plan ahead.

Simple Practices

Track cash flow (even a notes app works).
Automate give / save / invest first.
Avoid consumer debt (credit ≠ income).
Let lifestyle rise slower than income.
Treat bonuses & tax refunds as seed capital.

Spend with purpose so you can provide, stay flexible, and be generous.

Confirm any major financial decisions with your parents, accountant or a licensed financial adviser before actioning.

💰 Rule #2: Save 10%+ of Your Income for Long Term

First, build an emergency buffer (see Rule #9 for goal bucket approach) of $2,000. Increase it gradually over time in a high‑interest savings account (find one here). After that, put 10%+ into broad, low‑fee growth (index ETFs or a high‑growth super option).
It is suggested that you wait until you are 18 to start doing this, for tax reasons. If you are under 18, start by saving in a HISA.
Watch this brief video. It is a great primer on the basics of investing. I promise you it is worth 20 minutes of your time.

Why 10%?

It's achievable, sustainable, and powerful. Even on a $50,000 salary, that's $5,000 per year working for your future.

What if I can do more? Fantastic—accelerate it.

Edge it up: 10% → 12% → 15% → 20% as income rises.
Channel pay rises or side income straight into investments so lifestyle creep doesn’t swallow the gain.
Earlier, higher rates dramatically front‑load compounding and may reduce pressure later.

💡

Pro Tip: Pay yourself first! Set up automatic transfers so the money is saved before you can spend it.

Make It Automatic

Set up automatic transfers on payday.
Increase the amount with every pay rise.
Treat it like a non-negotiable bill.

$417 Monthly savings on $50k salary

$1,094,547 Value after 40 years at 7% growth

Confirm saving/investing rate changes or contribution strategies with your parents, accountant or a licensed financial adviser before actioning.

🤖 Active vs Passive (Index) Investing

There are two main ways to invest in shares and funds: active (trying to beat the market) and passive (owning the whole market via index funds). The case for index funds.

	Active Investing	Passive Investing (Index Funds/ETFs)
Goal	Pick winners, beat the market	Match the market return
Fees	Higher (fund manager, research)	Very low
Performance	Most underperform the market after fees	Consistently matches market (less fees drag)
Effort	Requires research, monitoring, decisions	Set and forget, automatic
Best for	Experts, hobbyists (few succeed long-term)	Almost everyone, especially beginners

Warren Buffett: "The bottom line: When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds."
Buffett on index funds (2016 Berkshire Hathaway Letter, p.24)

Takeaway: Passive investing is simple, cheap, and hard to beat over the long run.

🧪 Determining Your Risk Profile

Your risk profile guides how much goes into growth (shares / property / REITs) vs defensive (cash / bonds). It should reflect BOTH ability and willingness to handle volatility while still reaching goals.

Key Factors

Time horizon (when will you need the money?).
Financial cushion (emergency fund / stable income).
Volatility tolerance (emotional response to drops).
Need for return (are goals achievable at lower risk?).
Knowledge & prior experience.
Flexibility (can spending be cut in downturns?).

Self-Check Prompts

Could you stay invested after a 30–40% drop?
Do you have 6+ months expenses saved?
Is goal > 10 years away? (More growth OK.)
Will a loss force selling? (Then reduce risk.)
Are you diversifying broadly (not single bets)?
Benchmark yourself with an objective quiz such as the Investment Risk Tolerance Assessment Note that most people can go higher risk for retirement savings than their usual tolerance (particularly when young), as long as they aren't frequently checking their super balance.

Indicative Mix Guide

Very High Growth: 90–100% growth / 0–10% defensive (30+ yrs). This is likely where most people in their 20s should be investing, since their timeframes are so long.
High Growth: 80–90% / 10–20% (20+ yrs).
Balanced: 60–70% / 30–40% (10–15 yrs).
Moderate: 40–50% / 50–60% (5–10 yrs).
Conservative: 20–30% / 70–80% (<5 yrs or low tolerance).

Illustrative only; not a recommendation. Align per-goal (retirement vs deposit vs short-term).

Approach: Set your mix by goal bucket. Long-term wealth (20+ yrs) can usually skew high growth; medium goals (5–10 yrs) moderate; short-term (<5 yrs) mostly defensive. Rebalance annually or if drift >5–10% from target.

Further reading: Choosing investments (MoneySmart)

Confirm risk profile & asset allocation with your parents, accountant or a licensed financial adviser before actioning.

📊 Rule #3: Invest in Growth Assets

Risk vs. Return Landscape

Top right usually indicates higher long‑term returns with a bumpier ride. Diversify and stay the course.

Long-term performance reference: see Vanguard Index Chart (p.4) for historical context (past performance is not a reliable indicator of future results): https://fund-docs.vanguard.com/AU-Vanguard_Index_Chart_Brochure.pdf Historical returns commonly quoted are nominal (before inflation). Real (after inflation) returns are lower.

Scott Pape: "However, what history teaches us is this: the price you pay for earning long-term life changing compound gains is having to stomach short-term uncertainty."

🇦🇺 Australian Shares

An index ETF like A200 provides broad exposure to 200 large Australian companies (banks, miners, healthcare, more). It’s just an example (not a recommendation) — any low‑fee, broad Australian index fund works.

~9% Historical annual return
(past; not guaranteed) Nominal (pre‑inflation).

Diversified across major Australian companies.
Includes banks, miners, tech companies.
Franking credits provide tax benefits.
Low management fees (0.04% for A200).

Other low‑cost broad AU ETFs: VAS (Vanguard Australian Shares), IOZ (iShares Core S&P/ASX 200).

🌍 International Shares

An index ETF like BGBL provides global diversification (US tech + other developed markets), holding 1,300 stocks. Also just an example (not a recommendation) — choose any broad, low‑fee global fund.

~8-11% Historical annual return
(past; not guaranteed) Nominal (pre‑inflation).

Access to companies such as Apple, Microsoft, Google, Tesla.
Currency diversification benefits.
Exposure to the world’s largest economies.
Low management fees (0.08% for BGBL).

Other broad global ETFs: VGS (Vanguard Intl Shares).

“Diversification is the only free lunch in investing.”

Home Bias: Most Australians allocate 20–45% to Australian shares and the rest to international. This is called home bias (overweighting your home market).

Other Long-Term Investment Vehicles

All in one ETFs: e.g. DHHF that invests in 8,000 Australian and global stocks. This one is incredibly popular, since it is so well diversified.
Home equity: Tax‑free growth + forced saving via repayments.
Super (focussed in equities): Tax advantages + long compounding.
REITs: Property exposure with liquidity.
Geared ETFs (very high risk tolerance only): Magnify gains and losses via leverage; higher fees and potential for “decay” in volatile markets. Consider only as a small holding. Examples: G200 (geared Australian shares) and GGBL (geared global shares). Read the PDS and understand risks before using.
"Ethical" ETFs: Some options here. But be aware of higher fees. Read more.
Thematic ETFs: Focus on narrow themes (clean energy, AI, lithium, blockchain, cannabis, etc.). They can sound attractive but are often concentrated and higher‑risk — see why thematic ETFs often disappoint.
Factor / smart‑beta ETFs: These tilt exposures (value, momentum, quality, low volatility). See a technical comparison at DFSV vs AVUV — suitable only for investors who really understand factor risks and implementation. This is probably not you.

Short-Term / Defensive Vehicles

Bonds: Smooth out big market drops (useful as you get close to retirement).
Cash / offset: Emergency + near goals only. Appropriate when you want 0% chance of capital loss. Not generally appropriate for long timeframes (> 10 years).

Principles for Selecting an Index ETF

Keep fees low: ≤0.19% (0.19% on $100K = $190/yr).
Platform: Pick a low‑cost broker (comparison; Betashares Direct is one option).
Go broad: Whole markets > trendy themes. Can't decide? Start here (pick one from the first table, pick one from the second table).
Stay calm: Market drops are normal—don’t bail.
Automate: Invest every payday (e.g. Auto Invest). Reinvest distributions.
Dollar cost averaging: Invest a fixed amount regularly (e.g., monthly) to smooth out market volatility and reduce the impact of timing the market. This helps you buy more shares when prices are low and fewer when high. Learn more on MoneySmart.

Direct Investment vs Super Contributions:
You can send part of that 10% into super via salary sacrifice (lower tax). If you don't own a house, you could invest the 10% inside super to help buy your home (read here to find the rules and limits etc). If you own a home and have sufficient cash buffer, consider boosting concessional contributions.
• Concessional caps: ATO concessional contributions
• Non‑concessional caps: ATO non‑concessional contributions
Keep short‑term cash needs outside super in HISA.

Confirm asset allocation and contribution strategies with your parents, accountant or a licensed financial adviser before actioning.

📂 Rule #4: Choose the Right Super Fund

Your super may become the largest investment asset you ever own. Small percentage fee differences compound into large dollar gaps over decades. Pick a low-fee (as a general rule - weekly fee of $2 or less, and total investment + admin fees of <0.20%), growth-oriented option early, and review it periodically. If you aren't sure what the fees are, feel free to message Matthew and he can check for you. Do not trust your super statement - most super funds hide your investment fees, and they are the most expensive bit.

Goal: Minimise fees, maximise long-term (after-fee) growth, target high returns.

Example 1: HostPlus Indexed High Growth (low investment fee - 0.04% plus $1.50 weekly fee - Australian, and international shares). More information here, including a helpful spreadsheet comparing fees.
Example 2: HostPlus Indexed International Shares - 70% and HostPlus Indexed Australian Shares - 30% (low investment fee overall - 0.055% plus $1.50 weekly fee).
Low total fees: Small % saved now = big dollars later.
100% growth while young: Check your fund—prefer 0% in cash and bonds. Review risk in your 50s.
One account: Consolidate to avoid pointless fees.
Check insurance: Don't pay for cover you don't need yet.
Judge over the long term: 5–10 year performance > short noise.
Government co-contribution: Eligible low/mid income earners making after‑tax contributions may receive a government match (up to the cap). Read more.
Spouse contribution (once married): If one partner has a low assessable income, contributing to their super may qualify you for a tax offset and build their balance. Read more.
Contributions splitting: Apply annually to split up to 85% of taxed (concessional) contributions to your spouse’s account—evens balances, may allow earlier access (older spouse), helps manage future transfer balance caps. Read more.
Over $100K balance? There are options available to reduce tax. Or you may wish to consider researching geared super or SMSF.

Feel free to reach out to Matthew afterward if you'd like a second opinion.

Why Chasing Lower Fees Matters

Illustration (rounded): Start $50K + $500/month for 40 years, 7% gross market return (net = gross − fee), monthly compounding. Small fee % cuts the return you keep and the lost compound growth snowballs.

Annual Fee	Net Return Used	Approx Final Balance	Fee Drag vs 0.10%
0.10%	6.90%	$2.05M	Baseline
0.30%	6.70%	$1.93M	‑$125K
0.60%	6.40%	$1.75M	‑$300K
0.90%	6.10%	$1.59M	‑$460K

Illustrative only. Rounded; excludes tax, insurance & rule changes.

Confirm super consolidation, investment option changes or contribution strategies with your parents, accountant or a licensed financial adviser before actioning.

How to Switch Super Providers

Switching super funds is straightforward but can take a few weeks. Follow these steps to ensure a smooth transition.

Research & Choose: Compare funds using tools like the spreadsheet at Lazy Koala Investing or comparison websites listed at MoneySmart. Focus on fees and long term performance.
Check Your Current Balance: Log in to myGov or contact your current fund to confirm your balance, contributions, and any insurance.
Create: Create your new account with the new provider.
Notify Your Employer: If contributions are salary-sacrificed, inform your employer to update payroll details to the new provider.
Complete Transfer Forms: Download and fill out the rollover form from your new fund (or use their online portal). Provide your current fund details and sign.
Submit & Follow Up: Send the form to your new fund. They'll handle the transfer. Track progress via their app or calls.

🌱 Why Super is So Powerful

Superannuation is a long-term, tax-advantaged investment account for your retirement. The government gives it special tax treatment to help your money grow faster than in a regular account.

Super Tax Settings

Category	Tax Rate	Notes
Concessional contributions	15%	Employer SG + salary sacrifice (within cap)
High income (Div 293)	30%	Extra (up to) 15% on concessional contributions if income ~$220K or higher
Fund earnings (accumulation)	0-15%	Income is taxed at 15%, capital gain is taxed at 10-15% Opportunity to drive tax on capital gain down to as little as 0% (how?)
Retirement phase earnings and withdrawals	0%	Generally tax-free (check conditions of release and transfer balance cap)

Standard Marginal Income Tax (2024–25)

Taxable Income Band	Marginal Rate	Comment
Up to $18,200	2%	"Tax free" threshold
$18,201 – $45,000	18%	Common bracket for many full-time early career earners
$45,001 – $135,000	32%	Main bracket for many full-time early career earners
$135,001 – $190,000	39%	Higher bracket; lower-rate of super is awesome here
$190,001+	41%	Top marginal

Key Points:
• Super caps + lower tax accelerate compounding vs investing only outside super.
• Div 293 only affects high incomes—still often beneficial after the extra 15%.
• Don’t lock away money you need in the next few years—balance access & tax benefit.
• Tax & super (MoneySmart)

🏠 Rule #5: Own Your First Home Early

Why Early Home Ownership?

Stability: Protection from rent hikes.
Forced saving: Each repayment builds equity.
Tax‑free growth: Main residence usually CGT‑free.
Flex rule: Move out & rent it (check ATO 6‑year rule). This can dramatically reduce the interest cost to you.
Leverage: Small deposit controls large asset.
Avoid overbuying: Keep repayments manageable so debt doesn’t consume your cash flow. Buying a modest home preserves margin for investing, savings, and generosity.
Age Pension: Home not counted in assets test.
Assets test penalty: Renters’ financial assets are counted more heavily—effectively disadvantaging non‑owners (see assets test).
Foundation: Base for life, work, family, hospitality.
Debt recycling (advanced): Once cash flow and buffers are strong, consider strategies to convert non-deductible debt into deductible investment debt — see Debt Recycling (Passive Investing Australia), and get licensed advice before acting.

$600K Loan: Speed Changes Total Interest (Assumes 6% p.a.)

Term	Monthly Payment	Total Paid	Interest Cost
10 yrs	$6,655	$798,600	$198,600
15 yrs	$5,065	$911,700	$311,700
25 yrs	$3,866	$1,159,800	$559,800

Illustrative only; rates change. Paying faster dramatically reduces total interest. Try scenarios: Mortgage Calculator.

Getting Started Saving for a Deposit

HISA: Safe + liquid. Automate transfers.
FHSSS: Use super tax advantages for part of deposit (ATO guide; generally most effective for incomes of ~$50K–$180K; check limits).
Label it: Named “Deposit” account lowers temptation.
Government help available: Read more.
Run the numbers: Try the Barefoot Deposit Calculator (Excel) to help you think it through.

🧭 Bonus Features: Thrift, Debt & Protection Foundations

Focus: remove financial drag (debt & needless costs), practice simple thrift, align spending, then add basic legal + protection scaffolding.

💣 Clear high‑cost debt early (avoid new traps)

🪙 Thrift & low fixed costs → flexibility

🧾 Aligned budget (values over perfection)

🎯 Short & medium goal buckets (protect near‑term)

🛡️ Will & foundational protection (timed)

Check tax + super: myGov | lost super
Sequence: bad debt first, investing momentum next.
Delay liabilities (car etc.) & avoid credit traps.
Budget = align money with priorities (not punishment).
Short vs medium goal buckets (no chasing yield too soon).

Margin + low drag now multiplies every future wealth decision.

Confirm significant spending changes, investment reallocation or major cost-cut decisions with your parents, accountant or a licensed financial adviser before actioning.

💣 Rule #6: Eliminate High-Cost Debt

Kill expensive consumer debt fast. It's reverse compounding.

Pay These ASAP

Credit cards / buy-now-pay-later.
Personal / car loans (consumer).
Overdraft balances.

Sometimes Slower

HELP / HECS (lower indexation) ATO.
Tax-deductible investment loan interest (if disciplined).

Why This Order?

Removes guaranteed drag (18–22% vs 7% hoped growth).
Restores cash flow flexibility.
Reduces stress → better decisions.

Credit Card Caution: Do not get a credit card. Behavioural research shows people spend more when paying with credit instead of cash/debit.

Buy Now Pay Later Warning: Services like Afterpay, Zip, and Klarna make it dangerously easy to overspend. They prey on impulse purchases and create a debt cycle. If you can't afford to pay for it today in full, you can't afford it. Avoid BNPL completely—use debit instead and save up first.

Simple Flow

Minimums on all debts.
Domino your debts.
Repeat until only HELP (optional to accelerate later).

Investment > Debt payoff only when the after-tax expected return & risk justify it. For most early 20s: kill bad debt first.

Confirm debt prioritisation sequence or refinancing strategies with your parents, accountant or a licensed financial adviser before actioning.

🚗 Buying a Car: Smart Tips

Avoid common pitfalls and save money.

🚗 Thinking of buying a car?

Save as much as you can first. The less you borrow, the less you pay in interest.
Avoid loans from car dealers or salespeople. These are often the most expensive, with hidden fees and high interest rates.
Shop around for a loan—compare banks, credit unions, and online lenders. Look for the lowest interest rate and check for extra fees.
Never sign anything on the spot. Take your time, read the fine print, and ask questions if you're unsure.
Can you get by with a cheaper car, or public transport for a while? Cars lose value fast, and running costs add up.
"Buy the cheapest car your ego can afford." — Barefoot Investor.
Understand the total cost of ownership. Registration, insurance, fuel, maintenance, and repairs can cost thousands per year. Learn more about car costs.

Bottom line: If you must borrow, get the loan from a bank or credit union—not the car yard. And borrow as little as possible!

Confirm car purchase financing or large borrowing decisions with your parents, accountant or a licensed financial adviser before actioning.

📊 Rule #7: Simple Thrift Habits

Spend less to buy flexibility. Thrift = smart value, not stinginess.

🚗

Delay Liabilities

Car = depreciation + insurance + rego + maintenance. Stretch existing transport solutions first.

🏠

Live at Home (If Win–Win)

If costs and expectations are healthy, bank the difference (don't inflate lifestyle elsewhere).

💳

No Credit Card

Build spending discipline first. Rely on debit and planned cash buffers instead of credit limits that can encourage overspending.

Quick Habits

Automate saving/investing first.
24–48 hour pause on wants.
Track the three biggest leaks for 30 days.
Swap before adding new subscriptions.
Check OzBargain before buying items like phones or appliances to see current deals.
Cap your mobile plan at $20/month (preferably $15 or less).
Say no to convenience drains: DoorDash, Uber Eats, daily $7 barista coffees, gaming loot boxes/skins, unused gym memberships, and impulse Amazon lightning deals.
Semi-annual spending review: Every 6 months, go through your bank statements and highlight needs vs wants. This reveals spending patterns and helps you adjust.
Consider charity shops / op-shops for quality second-hand clothes and household items before buying new.
Skip extended warranties: Usually overpriced insurance for items that rarely break. Self-insure by saving the warranty cost instead.

Managing FOMO, Impulse & Lifestyle Creep:
• Social media can fuel FOMO—remember, most people only share their highlights.
• Pause before big purchases: ask if it aligns with your values and goals.
• Set spending limits for fun and stick to them.
• Watch for lifestyle creep: as income rises, keep increasing your savings/investing/generosity rate, not just your spending.
• Celebrate progress, not just purchases.

Low fixed costs = resilience + faster progress.

Confirm major thrift or spending plan adjustments with your parents, accountant or a licensed financial adviser before actioning.

💸 Example: Simple Fortnightly Allocation

Illustrative split of a $1,878 take‑home (after tax) fortnightly pay (roughly $60K salary). Adjust to rent, transport, and goals.

Category	Percent	Amount ($)	Purpose Snapshot
Board	6%	$115	Contribution to household (if living at home).
Essentials	25%	$475	Food, transport, phone, core bills.
Future (Invest / Super / Debt)	20%	$375	10% baseline investing + extra wealth / debt acceleration.
Savings Goals	20%	$375	Travel, upgrades, medium near‑term goals.
Generosity	19%	$350	Deliberate, proportional giving habit.
Lifestyle / Fun	10%	$188	Social, hobbies; capped to prioritise Future + Goals + Generosity.

If no board cost, redirect that 6% to Future or Goals.

Start approximate, then review in 60 days. Direction > precision early.

Confirm allocation changes or savings percentages with your parents, accountant or a licensed financial adviser before actioning.

🧾 Rule #8: Budget to Align Spending

Pick a system & commit: Choose one framework and run it for at least 90 days before switching. Example: Barefoot Investor bucket system (separate "buckets" / accounts: daily expenses, fun/splurge, goals/smile, and fire‑extinguisher / safety). Consistency beats tool hopping.

Priority Ladder

Essential living (food, basic housing).
Protection (emergency fund, insurance later).
Growth (investing / skills).
Generosity / Giving.
Purposeful Lifestyle / Fun.

Common Pitfalls

Tracking everything → burnout.
Ignoring annual / irregular costs.
Chasing "perfect" tools instead of action.

Tools

Notes app (manual awareness).
Bank category exports.
MoneySmart Budget Planner.
Aspire Budget (free budget spreadsheet).
Budgeting apps roundup (MoneyMag).
Student Life & Money Guide.

Track direction > precision early. Momentum beats spreadsheets abandoned in month two.

Confirm structural budgeting changes or account setup approaches with your parents, accountant or a licensed financial adviser before actioning.

🎯 Rule #9: Save for Short & Medium-Term Goals

Match time horizon to vehicle. Protect near-term money.

Goal Horizon	Examples	Primary Vehicle	Risk Level	Notes
< 12 months	Holiday, laptop	HISA / Offset	Very Low	Capital preservation & access
1–3 years	Big trip, course	HISA / Offset	Very Low	Avoid volatility risk
3–5 years	Car upgrade, wedding	HISA / Offset (+ optional very small diversified ETF)	Very Low–Low	Keep equity slice very small
5–10 years	First home deposit	HISA / Offset (+ optional small diversified ETF)	Very Low–Moderate	Keep equity slice small
20+ years	Retirement	Indexed ETFs (primarily equities)	High	Gradually add defensive assets when approaching retirement (50+)

Mini-Bucket Method

Dedicated nicknamed accounts reduce leakage.
Automate weekly micro-funding (e.g. $25 → "Travel").
Review quarterly: adjust or close stale goals.

Don't chase yield on money you can't delay. Timing alignment matters more than return.

Confirm vehicle selection for medium-term goals (e.g. adding ETFs) with your parents, accountant or a licensed financial adviser before actioning.

🛡️ Rule #10: Will & Protection Basics

Simple legal & protection steps reduce chaos for others and future you.

Will

Clarifies asset distribution.
Simplifies admin for family.
Free starter: Gathered Here.
Refresh after major life events (marriage, kids etc).

Life Insurance

Wait until spouse / children / debt (e.g. mortgage).
Start with group cover in super (low admin).
Match cover to needs (avoid overshoot).
Review at life events (marriage, kids, mortgage).
Emergency fund + debt reduction first.
Insurance Basics

Health Insurance

Often not needed in early 20s (public Medicare coverage).
Consider once income nears Medicare Levy Surcharge thresholds ($93K single / $186K family).
Lifetime Health Cover loading starts if you wait past 31 to take hospital cover (if you want it later).
Weigh premium vs likely benefits + opportunity cost.
Private health explainer

Other Protection

Income protection (after stable income).
TPD inside super (check definitions).

Digital Security

Use a password manager (e.g. KeePass).
Unique strong passwords for every account.
Protects financial accounts, email, super access.
Enable two-factor authentication where available.
Cyber security basics

Saving money for children

See: Investing for Children (I like Option 8).

Sequence matters: build assets → protect dependants → refine structures. Don't overinsure too early.

Confirm any insurance purchases, will creation or estate planning steps with your parents, accountant or a licensed financial adviser before actioning.

🚀 Your First 5 Moves (Do These First)

Nail these in order before optimising extras.

1. Choose the Right Super Fund
Low-fee, high-growth option while young. Consolidate, avoid duplicate fees.

2. Stop & Clear Bad Debt
No new consumer / high-interest debt. Mini buffer builds while clearing.

3. Build Starter Buffer ($2,000)
Emergency friction blocker. Park in high‑interest savings (HISA). Build this over time to ~6 months salary.

4. Automate 10%+ Investing / Super
“Pay yourself first” into low‑fee broad growth (ETF or high‑growth super).

5. Channel Surplus to Deposit & Rate Lift
Grow home deposit + optionally lift invest % (12% → 15% → 20%).

Confirm sequencing and prioritisation order with your parents, accountant or a licensed financial adviser before actioning.

✅ First 30 Days Playbook

One month = momentum. Execute one block per week; don't chase perfection.

Week 1: Foundations

Ensure you have your own bank account (not joint or controlled by others) for day to day transactions.
Provide your Tax File Number (TFN) to your banks to avoid higher tax on interest.
Open HISA (nickname 'Emergency').
List all debts + rates.
Select low-fee high-growth super option. Sign-up online.

Week 2: Automate

Auto transfer: pay → savings.
Auto transfer: pay → generosity.
Set 10%+ invest / super flow.
Tell employer the new super fund details.
Do your tax return.

Week 3: Awareness

Track top 3 spend leaks.
Add $ to starter buffer.
Learn basics: ETF vs cash.
Transfer old super balances to new fund. Close old super.
Watch this quick video to decide whether you'd like to read The Barefoot Disciple.

Week 4: First Action

Buy first broad ETF parcel OR confirm super contribution increase (if you haven't already).
Review progress & adjust %.
Set next 60‑day targets.
Read The Barefoot Investor or The Barefoot Disciple or another basic financial book.

Confirm initial investment implementation and contribution settings with your parents, accountant or a licensed financial adviser before actioning.

📚 Simple, High-Impact Reading List

Core titles to build strategy, behaviour, and Australian-specific knowledge. Many of these can be borrowed from the library for free!

The Barefoot Investor – Simple Australian money setup.
The Barefoot Disciple – Similar to The Barefoot Investor but with a Christian bent. Recommended.
Making Money Made Simple – Aussie tax, super basics.
The Millionaire Next Door – Quiet savers vs flashy spenders.
The Psychology of Money – Behaviour over theory.
The Simple Path to Wealth – Straight index investing path.

Note that these books may disagree with my content on some of the finer points (e.g. how much super do you need?) But overall they will broadly agree with most of my content.

💡 For more practical guides and calculators, visit MoneySmart.gov.au.

🔗 More Resources

Practical, reputable local references to reinforce smart spending, investing, and debt management.

Spending Priorities

Layer essentials → protection → growth → lifestyle.

Infographic (Australian Edition)

Investing Basics

Understand risk, diversification & low-fee approaches.

MoneySmart Investing
Passive Investing Australia
Lazy Koala Investing
Ben Felix (more technical)

Debt Help

Free confidential support if debt becomes stressful.

National Debt Helpline

Mob Strong Debt Help

Bookmark core links you’ll reuse; revisit quarterly.
Prefer official / unbiased sources before blogs or influencers.
Talk to Matthew or others after church if you'd like to discuss further.

🧩 Key Definitions

Core terms used throughout so you can decode the concepts quickly.

ETF Index Fund

Tracks a market index (e.g. ASX 200, global shares). Traded on the stock exchange like a share.

Super (Superannuation)

Government‑incentivised retirement structure. Concessional tax rates; money usually locked until preservation age.

HISA (High‑Interest Savings Account)

Variable‑rate bank account paying higher interest (often with conditions). Used for cash buffer and short goals.

Franking Credits

A tax credit passed from Australian companies to shareholders representing company tax already paid on profits.

Concessional Contribution

Pre‑tax (or salary‑sacrificed) payment into super taxed at 15% in the fund (up to annual cap) instead of your marginal rate.