Step 1: Invest in yourself by upskilling
When we talk about building wealth, it’s easy to picture large share portfolios or property investments but the best first move can be investing in yourself. How? Through upskilling.
“Financial wellbeing is about creating choice for the future and being financially resilient,” says Darlene Neu, financial wellbeing expert and co-founder of The Money Collective. “The more skills, qualifications and experience you have, the more options are available.” Short courses and certifications or even learning to use new tech can help boost your earning potential and open doors to better-paying roles or freelance work.
The side hustle is another route—and if you’ve ever thought about turning some of your spare time into extra income, you’re not alone. A 2022 report by the Australian Bureau of Statistics revealed more than 900,000 Australian workers held multiple jobs in the June quarter that year¹.
Step 2: Tackle your debt
Whether it’s from student or low-interest loans, credit cards or payday loans, debt can quickly chew through your money. But the good news? It doesn’t have to stop you building wealth, you just need to get ahead of the game.
Start by noting everything you owe. “List the lender, the balance and the interest rate for each debt, whether it’s a credit card, car loan or personal loan,” says CommBank personal finance expert Jess Irvine, who has created a Financial Fitness program to help Australians upskill on managing money. “You can do this in a spreadsheet or on paper. The important thing is seeing it all clearly.” Once you have the full picture, you can choose how you want to tackle it.
One option is the snowball method, where you pay off your smallest debts first to build momentum. Or try the avalanche method, which focuses first on debts with the highest interest rate, saving you more money over time. “Pick whichever method will help you stay motivated,” she suggests.
Consider rolling a few high-interest debts into one with a lower rate and setting up auto-payments so you’re not stung by late fees. Or contact your bank to discuss whether there are more suitable options for your loans.
Simply organising a repayment plan can relieve a huge mental load. “Prioritise paying off short-term unsecured debt first to save paying higher interest rates and free up cash flow faster,” advises Neu.
It’s also critical that you build some kind of emergency fund, she stresses. “Without one, unexpected expenses can derail your plans and financial goals. Building even a small emergency stash can give you a safety net so you’re not forced to rely on high-interest debt when life throws a curveball.”
Step 3: Get clear on your spending
Tracking spending, automating savings—plenty of apps take the hard work out of managing your money. Money Plan in the CommBank app is a handy tool for keeping a close eye on your spending habits. Monitor the areas that eat up most of your money, create budgets for specific categories of spending and set savings goals you can work towards with small lifestyle changes you can easily make, whether that means swapping your phone-plan provider or shopping for cheaper cuts of meat.
If crunching numbers is your thing, a simple spreadsheet can work just as well. The important thing is that you get clarity on where your money is going and the areas that have room for change. “Reviewing your bank account statements monthly or quarterly helps the numbers sink in, giving you a better overview of incoming versus outgoing money,” says Neu. That way, you can quickly adjust your budget as needed.
Step 4: Start building your savings
“When you’ve got a clear picture of what you have for spending and saving, it’s much easier to make smarter choices,” says Neu. Keep in mind that any cash saved will go towards building future security so don’t underestimate the small wins. “Even if it’s just a little amount, setting up a regular transfer to a separate savings account can really add up over time.”
That’s especially true when building an emergency fund. “Start small; even $500 is a great first milestone,” says Irvine. “An emergency buffer can help you avoid falling into debt when the unexpected happens and it can give you greater freedom to walk away from a job or relationship if you ever need to.”
To stay on track, think about opening a separate account just for your emergency savings. Some people even give theirs a name like “sleep-well-at-night fund” for motivation.
And don’t forget super. It can feel like a “later” problem but with compound interest and potential tax benefits that could work in your favour, it may be a good way to build wealth. If you have more than one super account, consider consolidating to avoid unnecessary fees. It’s also worth reviewing your current fund to ensure it aligns with your financial goals and values.
If you need a little support getting on top of debt, call CommBank on 13 30 95 or ask for financial assistance in NetBank. You can also call the National Debt Hotline on 1800 007 007 or search for a financial counsellor near you.
