7 realistic steps to build wealth

Building wealth is about brains, not luck. After all, you’re more likely to be struck by lightning than win the lotto. So, rather than following the advice of a fortune teller, or that dubious ‘finfluencer’, invest in yourself and learn to build wealth with these seven realistic steps. 

Key learnings covered in this topic

  1. The benefits of compound interest
  2. Tracking your spending
  3. Learning the basics of investing
  4. How to make the most of your next pay rise
  5. Combining your super
  6. Saving at tax time
  7. Seek financial advice at no extra cost.*

1.    Profit from compound interest

It’s been called the Eighth Wonder of the World. But what is compound interest? Basically, it works like a snowball rolling down a hill. The money you save earns interest, and this interest is reinvested. This generates even more interest, and a bigger ball of savings. To make the most of compound interest, it’s best to start early — that way, your snowball can really pick up speed as it grows.

2.    Know where every dollar goes

You know when pay day is, you know you pay your bills, but do you know where the leftover goes? If not, it’s time to get forensic with your spending. The more aware you are, the more likely you’ll watch every dollar you save. Imagine yourself in 10 years — do you want to be confident in your growing wealth, or regretting wasting so much on takeaway delivery?

3.    Learn how to invest 

Your super is the perfect launch pad for learning about investing. By taking more control of your account, you can learn the fundamentals of risk, diversification, asset classes, investment options and investment returns. Plus, if you’re a CareSuper member, one of our financial planners can walk you through the basics and help you build your investment confidence.

To get started, request a call-back.

4.    Stash your pay rises 

Getting a pay bump is exciting, and it’s an opportunity not to be wasted. Hopefully you’ve been spending within your means and are used to living on your previous salary. So the extra money you’ll get can be tucked away in a savings account, in your investments, or you can put more into super and really watch your savings go into overdrive.

5.    Get more in your pocket 

If you’ve had a few jobs, then you may be paying multiple fees on numerous super accounts. By combining your super, you could save on fees, find any lost super, and be more organised.

Find and combine your super in 3 steps.

6.    Use the tax savings available 

For those in the know, super is a great vehicle for potentially saving on tax. When you contribute from your before-tax salary, also known as salary sacrificing, you reduce your taxable income, and potentially how much tax you pay.

How it works 

Instead of paying the marginal tax rate of 32% (if you earn under $120,000 per year), you’ll only pay up to 15% on your money as it goes into your super. To see if you could save on tax, have a chat with your HR department about salary sacrificing to your CareSuper account.

Discover how Erin added $5,200 to her super and saved $1,794 in tax each year.  

Ask for expert help 

When it comes to money, the fastest way to lose it can be to follow unqualified advice. The good news is, as part of your Care Super membership you can chat to a financial planner about tax- effective ways to build your super savings, your risk appetite and the best investment options to suit your age and circumstances.*

Request a call-back today.

* Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766. 

Information correct as at 8 March 2024.