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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.

Families in Australia today face complex financial decisions. Rising living costs, shifting tax rules, volatile housing markets, and uncertain superannuation returns all mean that a clear financial plan is no longer optional—it is essential. A well-developed family financial plan helps align priorities, safeguard against unexpected shocks, and build wealth with discipline. This article explores why families should invest in financial planning, what elements to evaluate, and the common mistakes to avoid.

Why a Family Financial Plan Matters

A financial plan is more than a budget—it is a roadmap that brings together income, expenses, assets, liabilities, and goals into one coordinated strategy. For families, this means:

• Clarity and direction: Parents can prioritise saving for a home, children’s education, or retirement without feeling constantly pulled in different directions.

• Preparedness for surprises: Medical emergencies, job loss, or sudden expenses like a wedding can derail finances without forward planning.

• Intergenerational stability: Families can ensure not only their own retirement security but also support for their children without compromising financial health.

A 2022 survey by the Financial Planning Association of Australia found that 73% of Australians with a written financial plan reported higher financial wellbeing compared to just 29% without one.

Financial stability doesn’t happen by accident. For Australians, building a strong financial foundation is one of the most reliable ways to reduce stress, prepare for life’s unexpected events, and work toward long-term goals such as home ownership, education, or retirement. The techniques that form this foundation—budgeting, cash flow management, emergency savings, and income growth—are simple in concept but powerful in practice.

This article explains these techniques in detail, highlights common pitfalls such as lifestyle inflation, and shows how financial advisors can help Australians put them into action.

We provide a full range of financial planning services to our Perth clients, but one of the first questions we ask if you plan to build wealth, is about your level of debt. At Approved Financial Planners, the road to effective financial planning begins with taking charge of your debt and monthly expenses.

We can help you set up debts such as credit cards, student loans, leases, mortgages and personal loans in a way that helps you minimise interest payments that could be spent towards securing your future.

Debt isn’t always bad, but when it drags on without a plan, it can severely hinder wealth-building. Getting rid of the wrong debt changes your financial landscape: more cash flow, less risk, more freedom to invest, save, and plan for the future.

Types of Debt: Personal vs Income-Producing Debt

To set a foundation, it’s crucial to distinguish between personal (or consumer) debt and income-producing debt. The difference matters:

Financial planning is often seen mainly as numbers, spreadsheets, superannuation, investments, maybe tax or estate matters. But there is growing evidence—both in Australia and internationally—that a structured, intentional financial planning process brings psychological benefits: less stress, more life satisfaction, better resilience.

One foundational work is Kym A. Irving’s “The Financial Life Well-Lived: Psychological Benefits of Financial Planning” (2012, Queensland University of Technology). Irving argues that the process of financial planning (not just the end result) activates key psychological mechanisms such as sense of control, environmental mastery, competence, goal achievement, which all contribute to subjective well-being. (uowoajournals.org)

Below I’ll explain how each of the standard steps in financial planning can produce psychological benefit, referencing Irving and other research, and then interpret what this means for everyday Australians.