An indestructible building is only as good as it’s foundation, so it’s foundation has to be solid.
The same goes with your personal finances.
Lay and setup a strong base, and you’ll benefit for years and years to come.
You will without a doubt look back and be so stoked you did what you did back then.
- Save a minimum 6 months worth of expenses and place the cash in a high interest savings account, swearing to never touch it. This is an emergency account that is never to be used unless an absolutely drastic event occurs where immediate use of cash is needed. Therefore, if you’re weekly expenses are $350 this total savings to have at all times is $9,100 (or round up to 10 k for good measure)
- Boost or build your superannuation account to $50,000. This can be done by salary sacrifice or voluntary contributions (up to 25 k per year before significantly increasing the tax affects). The idea here is to ensure compound interest has the most time to of course “compound”, regardless if further contributions are added.
- Invest in low fee, diversified index funds also known as ETF’s (exchange traded funds). Preferably an amount of your home country’s stock market like the ASX, the whole US market and the global market. An ETF are units you can purchase in the market that are single products but are split into multiple equities.
If you do the above you’re ahead 99% of people your age and probably 95% of everyone else…
The in-depth explanation of each is coming soon!
