Get Ahead Financially means starting to plan your finances early — in your 20s or 30s rather than waiting until mid-life — is more than “nice to have”: it can meaningfully change your retirement lifestyle, reduce stress, and avoid mistakes that accumulate high costs. The earlier you act, the more years of compound returns you get, the fewer bad habits build up, and the fewer debts spiral. Below are three core strategies, with benefits, concrete examples, and pitfalls to avoid. But first, some context with data.
Some Context: What Do the Numbers Say?
- The Australian Prudential Regulation Authority (APRA) reports that total superannuation contributions in the year ending March 2025 were $202.8 billion, up 14.4% from the prior year. Employer contributions made up $147.1 billion; member (voluntary) contributions were $55.7B (up ~26.9%). (APRA)
- According to ASIC, Generation Z in Australia has average personal debt of A$8,188, vs non-Gen Z average ~A$6,730. 21% of Gen Z have $10,000+ in personal debt; 4% have $50,000+. Meanwhile, 25% have less than $1,000 in savings. (ASIC)
- Superannuation data show that much of a person’s retirement balance comes from investment returns (i.e. compound growth) rather than just the raw contributions. Missing contributions or delaying them early can lead to large losses over decades. (ifs.net.au)
These facts tell us: young people have both opportunity (time for compounding, ability to change habits early) and risk (debt, insufficient savings, missed super contributions) — making early planning powerful.
Strategy 1: Set Clear, Realistic Financial Goals
What this means
Setting goals means defining what you want to achieve (short-, medium-, long-term), putting numbers around them, giving time frames, and knowing how you’ll measure progress. Examples: saving a deposit for a home; paying off credit card debt in two years; accumulating a super balance sufficient to retire at a desired age with a certain standard of living.
Benefits
- Focus & motivation: When you have specific targets, you're less likely to spend impulsively or drift. Research (both in Australia and internationally) confirms that SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) tend to lead to better financial behaviours. (Gallagher)
- Prioritisation of action: You decide what matters now (e.g. debt repayment) vs what can wait (e.g. splurge spending). This helps allocate limited income more wisely.
- Measurable progress & adjustment: You can track progress (e.g. “I saved $3,000 out of $10,000 target”) and adjust if necessary (maybe reduce target, change timeline).
- Psychological benefit: Reduced anxiety, more confidence. Financial uncertainty tends to create stress; clarity around goals helps reduce that.
Relatable example
Suppose Alice, aged 28, wants to own a modest apartment by age 35, needs a $60,000 deposit. She works backwards: needs to save $10,000 per year; sets up a budget; adjusts discretionary spending; also channels extra savings into super for tax benefits. Because she set the goal early, she has 7 years to reach it, which smooths pressure vs waiting until age 33 and needing $30,000/year.
Pitfalls to avoid
- Goals that are too vague or unrealistic: e.g. “save more money” without saying how much or by when. Or setting a target far beyond what income allows leads to frustration or giving up.
- Setting too many goals at once: can dilute focus; trying to buy home, retire early, travel, eliminate all debt all at same time may stretch income too thin.
- Not revisiting/adjusting goals: life changes (job, family, health, cost of living) may make earlier goals unrealistic or require adjustment.
Strategy 2: Pay Off Personal Debt Early and Get Ahead Financially
Debt comes in many shapes: credit cards, personal loans, buy-now-pay-later (BNPL), HECS/HELP or student loans, mortgages. Some debt is “good” (e.g. a mortgage possibly) but many are “bad” (high interest, compounding at rates higher than your likely investment returns).
Why it matters
- High interest costs compound against you: For example, credit cards charging 20-25% per annum, BNPL late fees, etc., grow quickly if only minimum payments are made. Every dollar used to service interest is a dollar not invested or saved.
- Reduced financial flexibility: Debt repayments reduce cash flow; less ability to build savings or to make additional super contributions.
- Psychological and risk burden: Debt creates stress; inflates risk if rates rise; or during emergencies or job loss you may struggle.
Data & Australia-specific observations
- Gen Z having average personal debt ~$8,188, many with big portions in credit/consumer debt (ASIC data). (ASIC)
- Student debt has increased: “HELP” loans growing both in proportion of under-35s who have them (from ~20% to ~30% over a decade) and the average size of those debts rising by over 30%, to ~$26,463. (Morningstar)
Example
Ben (aged 30) has multiple debts: $8,000 credit card at 22% APR, $15,000 car loan at 6%, plus $25,000 student loan. He decides to accelerate payments on the credit card (highest rate), frees up $250/month by reducing dining out, and applies that to the credit card. That repayment means in, say, 18 months it's cleared, reducing interest cost dramatically, freeing that $250 to go either into savings or more super contributions.
Pitfalls to avoid
- Ignoring the lowest-hanging fruit: Sometimes people spread repayments equally rather than tackling the highest-interest debt first (the “avalanche method”). That costs more over time.
- Refinancing or consolidating without cost awareness: Some consolidation loans or balance transfers have fees or teaser rates; after fees, the benefit may be small or negative.
- Letting debt accumulate in new forms: e.g. using BNPL or credit cards irresponsibly while trying to repay old debt; or taking on “paylater” or store-cards with hidden costs.
Strategy 3: Actively Contribute to Superannuation (Not Just Rely on Employer Minimum, Where Possible)
In Australia, most workers have compulsory superannuation: the Superannuation Guarantee (SG), which on 1 July 2024 rose to 11.5% of ordinary time earnings, and is scheduled to reach 12% from 1 July 2025. (ASFA)
But relying only on the compulsory contributions often isn’t enough to achieve a comfortable retirement standard — especially if you start working later, change jobs, take career breaks, or earn less during some periods. Voluntary contributions (before or after tax), or salary sacrificing, can make a big difference.
Benefits
- More years to earn compound returns: The earlier and more consistently you contribute, the more of your eventual balance comes from investment growth rather than just what you put in. For many people, ~70-75% of their retirement super balance will come from those investment returns. (ifs.net.au)
- Tax advantages: Concessional contributions (pre‐tax, salary sacrifice) are taxed at a lower rate (15%) than some marginal tax rates; after-tax contributions may qualify for co-contributions if you’re eligible. There are caps and rules to observe.
- Ability to smooth out life disruptions: If you make extra contributions when your income is higher, you can offset periods of lower contribution (taking time off work, unemployment, etc.).
- Avoid having too small a super nest egg: Many people retire (or reach preservation age) with balances that, compounded from only SG contributions, provide income below what they hoped; extra contributions help bridge that gap.
Example
Carmen, aged 25, starts working and the SG contributes ~11–12% of her salary. She decides to salary sacrifice an extra 5% of her income into her super each year. Over 40 years to retirement, that extra 5% adds up (through both contributions and compounding) to materially increasing her super drawdown ability. By contrast, if she waited until age 40 to boost contributions, that extra growth would be much smaller.
Another example: someone who makes after-tax contributions eligible for co-contribution (government matching) up to $500 if their income is below certain thresholds. That’s effectively free money, but many do not claim it. (News.com.au)
Pitfalls to avoid
- Contribution caps and rules: There are concessional caps and non-concessional caps. Exceeding caps results in extra tax. Also, rules about access vs preservation (you generally can’t touch most super until you reach preservation age).
- Overlooking fees and insurance inside super funds: High fees can erode compounding; default investment options may be too conservative or not matched to your risk tolerance. Sometimes insurance inside super has high premiums.
- Neglecting liquidity/emergency funds: Putting too much money into super before you have an emergency buffer (3-6 months of living costs) can leave you vulnerable in bad times.
- Relying on super alone: While super is important, depending only on it (and only employer contributions) may leave you short, especially if retirement age is later, life expectancy is higher, or expenses in retirement are greater than expected (health, lifestyle, care, housing).
Putting It All Together: Why Early + Combined Matters
When you combine these three strategies early, the effects multiply:
- Clear goals give direction (e.g. “I want a super balance of $X by retirement” or “pay off all credit card debt by age 30”)
- Paying off debt frees cash flow which can be re-directed to savings or extra super contributions
- Extra super contributions early multiply via compounding, meaning that every extra dollar you contribute when you are young pulls forward your ability to retire more comfortably or earlier, with less financial stress.
Data-driven example:
- If someone misses out on $5,000 of super contributions early in their working life, because of compounding returns that could lead to tens of thousands in lost retirement balance over 30 or 40 years. (ifs.net.au)
- Compare two people with identical salaries: one begins salary sacrificing extra into super from age 25; the other not until 40. The first will likely have significantly larger super, due largely to compound returns over longer time. (AustralianSuper’s “compounding and how it can grow your super” gives illustrative tables showing extra balances gained by contributing $20/week for a decade starting at 20 vs starting at 40. (AustralianSuper))
Common Pitfalls & What to Watch Out For
While early planning is powerful, mistakes can undermine gains:
| Pitfall | Why It Hurts |
| Waiting for “perfect moment” | Delaying even a few years means missing compound growth, letting debt interest accumulate. |
| Letting lifestyle inflation eat savings | As income rises, spending tends to rise; without discipline extra income may be lost to higher costs rather than savings or debt repayment. |
| Under-insuring or ignoring risk | Illness, job loss, life changes happen; not having buffers (insurance, emergency fund) may force you into debt or early withdrawal from super. |
| Not regularly reviewing plan | Laws, tax rates, personal income, markets change; goals and strategies need periodic review. |
| Overcontribution errors / ignoring tax implications | Exceeding concessional or non-concessional super caps, or misunderstanding tax deductions, can incur penalties. |
| Focusing only on one piece | For instance, making extra super contributions but having large high interest debt at same time might be less effective than cleaning up debt first. Or having goals but no plan to pay off debt or do super properly. |
Why a Financial Adviser/Planner Helps
Because while the general principles are well grounded, individual circumstances vary widely. Variables include:
- Income level, stability and future prospects
- Current debts; whether they are high interest vs “good debt”
- Risk tolerance, age, health, family situation
- Desired retirement age and lifestyle
- Tax position; e.g. concessional vs non-concessional contribution caps; whether co-contributions apply; whether salary sacrifice makes sense
A qualified financial planner (or financial adviser) can help tailor the above strategies:
- Help you set realistic goals for your life, not just somebody else’s
- Model scenarios (e.g. “if I contribute extra super starting now vs in five years;” “if I pay off debt vs invest”)
- Identify what kinds of debt to pay first; whether consolidation makes sense
- Check whether you are in the right super fund, the right investment option inside it, whether fees are too high, whether you could benefit from extra contributions or catch-ups
- Monitor and adjust as tax rules, markets, income, life changes
What Early Planning Looks Like in Practice: A Sample Roadmap
Here’s a sample of what a person in their mid-20s or early 30s might do:
- Assess your current financial picture: incomes, all debts, savings, super balance, insurance, monthly cash flow.
- Set specific goals: e.g. build emergency fund of 3× living expenses in 12 months; pay off credit card debt within 18 months; buy house deposit in 5 years; retire at 65 with super that provides $60,000/year in real terms.
- Budget to allocate funds: payments for debt, regular savings, extra super contributions.
- Pay off high-interest debt first, while making minimum payments elsewhere.
- Build emergency buffer so you don’t need to tap high-cost credit during shocks.
- Make extra super contributions where possible (salary sacrifice, after-tax contributions, catch-ups) once debt is under control and emergency buffer exists.
- Review super fund/investment options, fees, risk profile, multiple funds etc.
- Revisit plan annually (or after major life events) to adjust.
Final Thoughts
Early financial planning will help yoiu get ahead financially and isn’t optional if you want comfort, flexibility, less stress. The combination of setting goals, managing and reducing debt, and proactively contributing to super can dramatically improve outcomes for retirement and life in between. Starting early magnifies benefits via compounding; waiting can impose large costs.
If you are uncertain about your unique situation, seeking advice from a qualified financial planner or adviser is very worthwhile. They can help ensure the strategy you adopt fits your income, risk appetite, life dreams, and avoids tax or legal pitfalls.
References
- APRA, “APRA releases superannuation statistics for March 2025”, total contributions $202.8B etc. (APRA)
- Superannuation industry statistics, quarterly member & employer contributions. (ASFA)
- ASIC, “Gen Z more concerned about finances than any generation …” – average debt figures etc. (ASIC)
- Morningstar, “Will young Australians be better off than their parents?” – data on HELP/HECS debt rising average size. (Morningstar)
- Media Super / AustralianSuper (and related fund/consumer council sources), on compounding in super and examples of extra contributions over time. (AustralianSuper)
- AustralianSuper: “Compounding and how it can grow your super” illustrating extra balances from early contributions. (AustralianSuper)
- Super Members Council / IFS report on impact of unpaid super and losses from missing contributions. (ifs.net.au)
- Info on government incentives such as co-contribution, LISTO etc. (from news source) (News.com.au)
- Data on average debt per person and short-term credit debt in Australia. (Employment Hero)
