Quick Look
Focus: How to enjoy life now while still building wealth for the future
Key Takeaways:
Wealth isn’t just about having money. It’s about having choices — now and in the future. But building wealth doesn’t mean living like a monk. Nor does living for today mean ignoring tomorrow.
The secret is balance. Understanding when to enjoy your money, when to rein it in, and how to create a financial plan that reflects your values. With the right mindset, long-term wealth becomes less about self-denial — and more about confidence.
Australia’s cost of living can be high, and the financial pressure is real. Many people feel stuck between two extremes:
The challenge is that wealth building takes time. It relies on compounding — and consistency. But when plans feel too rigid or joyless, they’re hard to stick to. On the other hand, if you spend freely and don’t plan ahead, your future options shrink.
So, how do you strike the right balance? How do you spend and save in a way that builds freedom — not guilt?
1. Start With Your Values, Not Just Numbers
Ask yourself:
When your plan reflects your real priorities, you’re more likely to follow through. For example:
2. Use the 50/30/20 Rule (or a version of it)
A classic framework for balance:
You can adjust the mix depending on income and goals — but aim to lock in your “future” portion first, so it happens automatically.
3. Automate Wealth-Building Habits
The key? Set and forget. Treat wealth-building like a bill you pay to your future self.
4. Build in Guilt-Free Spending
No one sticks to a plan that feels like punishment. Include spending for fun — just set a limit and track it.
This keeps you engaged and motivated without blowing the budget.
5. Check Progress, Not Perfection
Wealth is a long game. Life will throw curveballs — job changes, interest rate hikes, health issues. The aim is to adjust, not abandon your plan.
Nathan and Priya: Living Well, Planning Ahead Nathan and Priya earn a combined $170,000. They love food, live music, and overseas travel. They also want to retire by 60. Their strategy: Stick to a 50/30/20 budget, with $28,000/year going to savings and super top-ups Use salary sacrifice to contribute an extra $150 each per fortnight to super Allocate $6,000/year for travel and $3,000/year for fun spending Review everything each December over a glass of wine Over 10 years, they’ve travelled widely, stayed out of debt, and built nearly $200,000 in combined investment and super growth — all without feeling like they missed out. And this is more significant than it first appears. Let’s assume that they start this plan when they are 30 and look at how this could grow by the time they are 60 and plan on retiring. First 10 years to age 40: $200,000 saved as indicated above. Second 10 years to age 50: The $200,000 previously saved could grow to $400,000 at normal investment returns of 7% net and they will have added another $200,000 of savings. They could then have $600,000 total. Third 10 years to age 60: The $600,000 previously saved could grow to $1,2000,000 under normal investment returns of 7% net and they would have added another $200,000 of further savings. They could then have $1,400,000 to retire on. What if they aren’t ready to retire and continue their jobs for another 5 years to age 65: The $1,400,000 previously saved could grow to just under $2,000,000 at the normal 7% net return and they could have an expensive holiday every year instead of saving anymore.
“Do I have to give up all luxuries to build wealth?”
Not at all. You just need to plan for them. When you budget for treats, they feel better — and you avoid regret.
“Isn’t saving only 20% too slow?”
It depends on your goals. If you start early and invest wisely, 15–20% over decades can be powerful. If you start later or want to retire early, you may need to save more.
“What if I don’t earn enough to save?”
Start small. Even $10–$20 a week builds the habit. As income grows, you can scale it. It’s consistency — not amount — that creates momentum.
“Is investing risky?”
All investing carries risk but not investing carries the risk of falling behind. Spreading your money (diversification) and using long timeframes reduces the risk. Getting investment and savings advice has been shown to reduce risk by making fully informed decisions about what to invest in.
“Should I focus on paying off the mortgage or investing?”
There’s no one-size-fits-all answer. Paying off your mortgage is a guaranteed way to reduce debt and build equity, offering peace of mind and risk-free returns. On the other hand, investing—whether through superannuation or other assets—can potentially deliver higher long-term growth, though it comes with market volatility. For many, a balanced approach works best: steadily reducing your mortgage while consistently growing your investment portfolio. This strategy provides the stability of debt reduction alongside the opportunity for wealth creation, helping you stay on track toward your financial goal.
You don’t have to choose between living well now and building wealth for the future. With some structure, small habits, and clear values, you can do both.
Long-term wealth isn’t about being perfect — it’s about being consistent. And when your plan reflects your real life, it’s a lot easier to stick to.
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