Big riches with small changes and little effort
Small adjustments to our spending habits executed over our working life can have significant impacts on our retirement wealth, regardless of how little we earn.
Take Susan for example who earns $750 per week. She rents an apartment in Perth and pays $400 per week in rent. She spends $200 on food and $150 on bills, transport, and entertainment. This leaves Susan with $0 in savings each month. Assuming Susan’s wage keeps up with inflation, she will retire with only her superannuation to keep her going.
Let’s say Susan changed her spending habits slightly by cutting her grocery spend by only $20 per week. This could simply mean paying attention to weekly discounts, bulk buying or changing to a budget grocery store such as Aldi.
Assuming Susan works for 40 years and places her $20 weekly savings into a savings or investment account paying an average of 5% compounded monthly, Susan will retire with an extra $132,255 dollars. This includes $41,600 in savings and $90,655 in interest.
$20 per week can go a very long way.
Similar posts you may like
- Australia’s First Direct Taxes (1851)
The first direct taxes took the form of taxing the estates of deceased persons which at the outset applied only to personal estates and Read more
- Mortgage Offset Account
Mortgage offset accounts are savings accounts that are structured so your savings balance in the account is offset against your home loan Read more
- A Window Tax Was Introduced in 1696
The window tax was a property tax based on the number of windows in a house. It was designed to impose tax relative to Read more
- Protecting Worker Entitlement Bill 2023
The Government is changing the Fair Work Act 2009 to protect workers’ entitlements. The key Protecting Workers Entitlements Bill amendments are: Increasing protections for Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2