Compared to previous generations, millennials have less accumulated wealth. This generation on average spend longer in education and carry higher student debt. An unstable economy and global financial instability bring on employment challenges. Combined with unaffordable housing and the changing nature of work, wealth accumulation for millennials will become increasingly difficult. More than ever before, young Australians need to have some basic financial knowledge.


Saving money


Financial freedom requires effort and discipline. Being young is a great time to start learning about finances. Bad decisions you make when you are young can have a negative impact on your finances in the future. Start developing good habits today to build and grow your wealth for tomorrow.


How to save money

  • Track your income and expenses. This will help you avoid spending mindlessly.
  • Create a budget and stick to it.
  • Put your finances on autopilot. Having your money redirected to your savings account automatically will ensure you pay yourself first.
  • Live below your means. Keeping your expenses low means you can use the surplus funds to invest in growing your wealth. The more you have to invest, the faster your wealth grows.
  • Save for things you want rather than purchasing items on credit or Afterpay.
  • Pay down your credit card debts.


Growing your wealth


Wealth accumulation needs to start as early as possible. Millennials can take advantage of compounding by maximising their saving and investing efforts when they are young. This gives investments more time to grow and allow them to reach their retirement goals.


Ways to grow your wealth:

  1. Develop a plan. Speak to your financial advisor about creating a budget and implementing wealth creation strategies.
  2. Avoid purchasing an expensive home and car too quickly. Large loan repayments will take a large portion of your income and impact your ability to save.
  3. Look for a good mentor and surround yourself with like-minded people. When you spend time with others who are financially successful, their habits, attitudes, and mindset will also influence you in a positive way.
  4. Take advantage of your youth. Being young have many advantages. You’re not tied down with responsibilities, and your mind is more open to new opportunities.
  5. Think long term. Start thinking about your retirement now and contribute to your superannuation early. Being a millennial, you have more time than someone who started saving for retirement later in life. Your money will benefit from compounding growth.
  6. Invest in yourself. Broaden your experiences and skillset to increase your earning potential. When you become more valuable, you will earn more.
  7. Save for an emergency. Have enough money to cover 3 to 6 months of expenses.
  8. Ensure you have adequate insurances to protect your income. If you become sick or injured, having income protection will help you with your living expenses when you cannot work.
  9. Talk to your partner about your financial goals.


Accumulating and growing your wealth requires you to earn more than you spend so that you can invest the difference. You can achieve this by either spending less or earning more. To maximise the surplus money you have to invest, you need to control your spending and increase your earnings at the same time.


Know what’s happening with your super


Many millennials do not spend time thinking about their superannuation or preparing for their retirement. It is often left until much later in life before any planning occurs. Early planning and implementation mean your super can benefit from compounding for a longer period.

It’s common for people to change jobs or switch careers during their working life. Whenever you change jobs, your new employer may pay your superannuation into their designated super fund. This means you may end up with several superannuation accounts unless you instruct your employer to pay your super into your chosen fund. Having multiple super accounts will cost you more money to maintain because you double up on management fees and even insurance policies. You should also monitor your super account regularly and know where your money is invested. This will help you reduce fees, locate lost super, and manage your investment risk.

It is important to start cultivating good money management habits and educate yourself on financial matters while you are young. Contact Moiler today to discuss your long term financial goals and let the team help you develop a personalised financial plan to suit your needs.


Other articles you may be interested in:
Growing Your Wealth with Property


This document has been prepared by Moiler Wealth, an Authorised Representative of Count Financial Limited ABN 19 001 974 625; AFSL 227232 (“Count”) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 and is for general information only. The presentation has been prepared without taking into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for your needs and consider talking to a Count Authorised Representative before making any investment decision. The relevant PDS should be considered before making a decision about any financial product. The information is provided as an information service only and does not constitute financial product advice and should not be relied upon as financial product advice. 25 November 2019.