Building savings and managing your super can become a rewarding habit.
Focus on saving
Compound interest means earning interest on interest. If you invested $40 every month at 5% interest you could have an additional $35,524 in 30 years*. You will accumulate over $20,000 of interest from contributing less than $500 a year! Budgeting and savings tips are provided on the setting investment goals page.
Look at your options
There are many ways you can start your investing or savings. It might be as simple as paying your credit card faster, making additional contributions to your super or investing in a managed fund.
Each option has different pros and cons. For example you can save through super, but you won’t be able to access it until you are of retirement age. You could take a look at the tax effective IOOF WealthBuilder savings product, which allow you to save money for a range of different purposes.
Look at our page on choosing the right investment option will help you weigh up some of the options and teach you about risk and returns.
Retirement might seem like a distant future, but now is a great time to get financial advice. Research by the Financial Services Council has revealed that people who receive financial advice will be almost $100,000 better off when they commence retirement.#
A financial adviser will be able to sit down with you and look at your priorities and then create a plan with you. Think of it as a personal trainer for you money. Click here to find an adviser in your area.
* This assumes compound interest of 5% paid monthly (end of period) over 30 years with 360 monthly payments and excludes personal income tax implications.
# Source: Investor Daily 17 Feb 2011