Invest
Young Aussies’ guide to getting your dollars adding up in 2021
You may have noticed something unusual happen to your bank balance since the COVID-19 pandemic hit: it went up instead of down. Capitalise on that in 2021 with these simple steps, writes Helen Baker.

Young Aussies’ guide to getting your dollars adding up in 2021
You may have noticed something unusual happen to your bank balance since the COVID-19 pandemic hit: it went up instead of down. Capitalise on that in 2021 with these simple steps, writes Helen Baker.

Restrictions mean that since March last year, we’re working from home more, had to scrap overseas holiday plans, and aren’t going out as much.
The upside of this is you’re likely spending far less than you used to.
With life returning to a more normal setting in 2021, you have an incredible opportunity to capitalise on these unexpected savings and build yourself a better financial future.
1. Credit rating
Think about what your credit rating currently looks like.
A poor credit rating can restrict you from getting a loan to buy a property, securing finance to buy a car and even your ability to get a credit card or get a new mobile phone plan.
Developing good financial habits when you’re young opens a lot of doors for you down the track. That means:
- Setting up an emergency savings fund and putting aside money from every pay check.
- Paying bills, utilities and credit card repayments on time (you’ll avoid paying late fees, too!)
- Cancelling subscriptions you no longer need — an easy way to stop cash leakage.
- Spending within your means — watch those Afterpay shopping binges and tap-and-go card payments!
2. Insurance
Don’t underestimate the value of insurances like income protection, professional indemnity and disability.
Firstly, some payments can come out of your super, so they won’t dent your bank balance.
When you’re young, you have less in savings, super and assets, meaning you’re heavily reliant on your income. What happens if something unexpected happens to you and your ability to earn that income (like a global pandemic!)?
Not only that, getting insurance cover early in life can save you big bucks later on if you can lock in a level premium, and you are more likely to get full cover as your health is possibly at its best.
3. Wills
Having a will allows you to outline who gets what if something bad were to happen to you. For example, are there relatives you specifically want to exclude due to relationship breakdowns? Are there charities you want to leave money to?
But it’s not only your own will that you should consider.
Do your parents have an up-to-date will? If you have siblings under the age of 18, who would get custody and what provisions are set aside for their care? Is your inheritance protected?
These are important factors you don’t want to be struggling with if you’re grieving their loss.
4. Superannuation
You may feel nonplussed about your super while you’re young. But there are important considerations to weigh up now.
Consolidating superannuation may not save you money like you think it will, especially if you consolidate into a higher-fee fund. Consolidating also automatically closes any insurance policies you had, and you may not be able to get those same exact benefits back again.
Also, new rules mean that super funds are required to close accounts that don’t meet minimum balance or active status requirements.
5. Student debts
Chances are if you went to uni, you have an eyewatering student debt. In some instances, you could be better off by making additional repayments.
For example, COVID stand-downs may have knocked your income down. In which case, you may have gone down a repayment band and end up paying less off your loan this financial year than usual. And bigger debt attracts more indexation (interest).
If you can afford it, consider making voluntary repayments. But do it before 1 June, when indexation is added, to benefit from the saving and pay it off sooner.
6. First home buyer incentives
Both federal and state/territory governments offer various incentives to help you purchase your first property.
These incentives, which can include cash grants, stamp duty exemptions and contributions to your deposit savings, can equate to thousands, even tens of thousands, of dollars. And they’re basically free money!
Do your research to see what you’re eligible for and how to apply, as these can differ greatly.
7. Compound interest
You probably remember your school maths teacher prattling on about compound interest at some point. Well, it benefits you most while you’re young.
Investing early in life means you have more time for those investments to grow in value — especially if you get in before you have kids or a mortgage.
Investments aren’t necessarily about saving for retirement either: imagine being able to sell a share portfolio or use investment property equity to buy your own home or start a business!
Helen Baker is a licensed Australian financial adviser and author of two books.

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more

Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more

Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more

Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more

Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more

Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more

Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more

Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more

Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more