Start saving now!
The saying “there’s no time like the present” is particularly meaningful when it comes to saving and investing. That’s because of the magic of compound interest, sometimes referred to as the ‘rule of 72’.
Save your next pay rise
When you receive a pay raise, think about saving the extra money you receive each fortnight. You can do this by reducing any non-deductible debt you might have, such as credit cards or your mortgage. Or you could make extra contributions to your super, or other forms of saving. You probably won’t even notice it’s gone, and you will be surprised how quickly this money can grow.
Keep track of your money
Keep receipts for all of your purchases during a week, then add them up. You’ll be surprised how much money you spend on smaller impulse items – money you could be investing instead!
Choose your investment goals and a timeframe in which you will aim to reach that goal. Your timeframe will help you decide where to invest your money.
For example, for a short-term goal like an overseas holiday, you might choose a more conservative investment such as a managed fund or other cash based investments, so you can access your money at any time. For longer-term goals like retirement, you might look to invest in growth assets, such as shares, through your superannuation account.