Context & Problem

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A lot of people assume saving is a luxury—something you do after you’ve hit a certain income level. But waiting to save until life feels “easier” can lead to years of missed opportunities.

What’s changed? The rising cost of living has made it harder to build a buffer, especially when wages aren’t growing at the same pace. Many Australians are caught in the cycle of spending what they earn, with little left over for emergencies or goals

The good news? You don’t need a huge salary to build financial stability. But you do need a realistic, structured approach that fits your circumstances.

1. Getting Started (Annual income under $60,000)

Focus: Build stability and form habits

• Start with a safety net: Aim for $1,000 in a separate high-interest savings account
• Automate a micro-transfer: Set up$10–$30per week to auto-transfer right after pay day
• Use the 80/20 split: Allocate roughly 80% to essentials and 20% to goals or debt
• Track the basics: Use a simple app to monitor where money leaks (e.g. subscriptions, takeaways)
• Repaying a home loan: This is one of the best and most common savings strategies

Example:

• On a $55,000 salary, transferring $20 per week = $1,040 saved in a year—plus interest

2. Growing Momentum (Annual income$60,000–$100,000)

Focus: Build multiple buckets and reduce “lifestyle creep”

Step-by-step example:

• Follow the 50/30/20 rule:50% needs, 30% wants, 20% saving/debt
• Create named accounts: Have one each for emergency, travel, and long-term goals
• Boost your super (if appropriate):Consider salary sacrificing small amounts (e.g.$20–$50 per week)—the concessional cap is currently $30,000 per year (ATO, updated 1 July2025)
• Review expenses annually: Renegotiate big bills like insurance, power, and internet. Use the Bill Hero budget saver affiliate on the moneyGPS website through the link below

3.  Optimising Wealth (Annual income over $100,000)

Focus: Maximise returns and automate growth

• Increase your saving percentage: Aim for25–30%or more, depending on goals
• Invest with purpose: Consider setting up regular investment contributions
• Max out super tax benefits: Explore salary sacrifice or personal deductible contributions
• Work with a planner: At this level, a professional strategy can help you optimise tax, investment structure, and retirement planning

Isn ’ t saving pointless if I ’ m only putting away $10 a week?

Not at all. The habit is what counts—and those small amounts compound over time. Plus, once the habit is formed, it’s easier to increase the amount later

I don ’ t earn enough to save.

Many people feel this way but even saving$5–$10per week builds financial muscle. It’s not about the amount—it’s about building the behaviour.

Should I pay off debt or save first?

Ideally, a mix. Build a small buffer to avoid relying on more credit, then focus on paying down high-interest debt. This balance helps reduce long-term financial stress

What if my income is irregular

Use percentages instead of fixed amounts. For example, aim to save 10% of every dollar you earn, even if it varies week to week