Let us be real for a second. The cost of living in Australia right now is tough. Rent prices are through the roof.
A simple trip to Woolies or Coles feels like it takes half your paycheck. It is easy to feel stressed about money when you are just starting out.
Whether you are studying at uni or working hard as a first year tradie, your 20s are a critical time. It is the best time to build good money habits.
You do not need to be rich to start. You just need to know how to manage the bucks you do have.
This guide covers the best money habits for young Aussies. We will show you how to set up your finances so you can still enjoy life without going broke.
Why Good Money Habits for Young Aussies Beat Quick Hacks
We all see those viral videos online. People claim they made thousands overnight with a secret side hustle.
Most of those quick hacks are complete rubbish. Real wealth does not come from a secret trick. It comes from boring, steady habits.
When you build strong habits, you put your money on autopilot. You do not have to stress about every single dollar.
Habits protect you when things go wrong. If your car breaks down or you lose some shifts at work, a good habit like an emergency fund saves you.
Starting these habits in your 20s gives you a massive advantage. You have time on your side.
Habit 1: Pay Yourself First and Automate It
The biggest mistake young people make is saving whatever is left at the end of the month. Usually, there is nothing left.
You need to flip this around. The habit is called paying yourself first.
As soon as your pay hits your bank account, move a chunk of it into savings. Do not even think about it.
You can set up an automatic transfer in your banking app. Set it to happen the day after payday.
Even if it is just 20 bucks a week, it adds up fast. This is how you build an emergency fund.
Setting Up Your Buckets
Many Aussies use a bucket system to manage their cash. You simply open a few different bank accounts with no fees.
One account is for your daily spending like rent, bills, and groceries. Another is for fun stuff like going to the pub or gigs.
Your final account is your savings. Look for a High Interest Savings Account.
When your money is split up, it is much harder to accidentally spend your rent money on a weekend away.
Habit 2: Sort Out Your Superannuation Early
Superannuation sounds like a boring topic for older people. But your super is actually your money.
Your boss pays a percentage of your wages into this fund. Right now, it is 11.5 percent.
Because you are young, this money has decades to grow. This growth is called compound interest.
If you ignore your super in your 20s, you could lose hundreds of thousands of dollars by the time you retire.
Finding Lost Super and Consolidating
If you have worked a few casual jobs, you might have multiple super accounts. This is a huge problem.
Every account charges you fees. Multiple fees will eat away at your balance very quickly.
Log into your myGov account and link the ATO. You can see all your super accounts in one place.
Roll them all into one single fund. Look for an industry super fund with low fees and good growth.
Taking twenty minutes to fix this today will literally change your future.
Habit 3: Track Where Your Bucks Actually Go
You cannot manage your money if you do not know where it goes. Small expenses add up without you noticing.
Maybe you buy a coffee every morning. Maybe you have four different streaming services but only watch one.
You need to build the habit of checking your bank statements. Do this once a month.
Sit down and look at what you spent. You might be shocked at how much went to food delivery apps.
Beating the Cost of Living Crunch
When you track your spending, you can find easy ways to cut back. This helps beat the current cost of living pressure.
You do not have to give up everything fun. Just cut the things that do not actually make you happy.
If you pack your lunch twice a week instead of buying it, you save a chunk of cash.
Cancel that gym membership you never use. Call your internet provider and ask for a better deal.
Little changes make a huge difference to your bottom line.
Habit 4: Keep Your HECS Debt in Check
Most young Aussies who go to uni end up with a HECS or HELP debt. It feels like fake money because you do not pay it upfront.
But it is very real. Your HECS debt goes up every year due to indexation.
Indexation is tied to inflation. When inflation is high, your student debt grows a lot faster.
You do not need to panic and pay it all off today. But you do need to understand how it works.
Once you earn over a certain amount, the government takes HECS repayments out of your pay automatically.
Make sure you tell your boss you have a HECS debt when you fill out your tax form.
If you do not, you will get a nasty tax bill at the end of the financial year.
Keep an eye on your balance through the ATO website. Know exactly what you owe.
Habit 5: Ditch the Buy Now Pay Later Traps
Services like Afterpay and Zip Pay are everywhere now. They make it so easy to buy things you cannot afford.
This is a dangerous habit to form in your 20s. It normalizes being in debt for everyday items.
If you use these services for clothes or nights out, you are spending future money.
When your next payday comes, half of it is already gone to pay off past purchases. It is a vicious cycle.
If you want to buy a new jacket or pair of shoes, save up for it first.
Learn to wait. Delayed gratification is a massive part of being good with money.
If you already have Buy Now Pay Later debts, make a plan to clear them.
Pay off the smallest one first. Then delete the app from your phone so you are not tempted.
How to Start Building These Habits This Week
Reading about money is easy. Doing something about it is the hard part.
You do not need to fix everything today. Just pick one small thing to start with.
- First, log into your bank and set up that automatic savings transfer. Even five bucks is a start.
- Second, check your myGov account to see where your super is hiding.
- Third, look at your phone subscriptions. Cancel one thing you have not used this month.
These small wins build momentum. You will start to feel more in control of your cash.
Wrap Up: Small Steps Lead to Big Savings
Being in your 20s in Australia is tough right now. Everything costs more than it used to.
But you still have the power to take charge of your finances.
By building solid money habits for young Aussies now, you set yourself up for life.
Pay yourself first, fix your super, and avoid dumb debt. Keep an eye on your spending and your HECS.
Your 30 year old self will thank you for the work you do today. Start small, stay consistent, and watch your savings grow.
