How to Build Wealth in Your 20s and 30s (Even If You’re Starting From Scratch)
Building wealth might sound like something for "future you," but the best time to start is now, especially in your 20s or 30s. Whether you're juggling student debt, just starting a career, or trying to save for your first home, it’s not about how much you earn but how smart you are with what you have. Here are real-world strategies young Australians can use to grow wealth from the ground up.
1. Automate Your Savings First
Set up an automatic transfer from your transaction account to a savings or investing account as soon as you get paid. Even if it’s just $10 or $50 a week, you're building a habit.
Why it works: You remove the temptation to spend and make saving effortless. Out of sight, out of spend.
Bonus tip: Rename your savings account something meaningful like "Europe 2026" or "Freedom Fund" to stay motivated.
2. Avoid Lifestyle Creep
As your income increases, it’s tempting to upgrade your lifestyle: a better car, more Uber Eats, weekend getaways. This is called "lifestyle creep."
Strategy: Keep your fixed costs low and lock in a percentage of every pay rise toward savings or investing.
Pro move: Live like you're still on your old salary for 12 months after a raise.
3. Start Investing Early (Even with $5)
Thanks to micro-investing platforms like Raiz, Spaceship, and CommSec Pocket, you don’t need thousands to start. These apps round up your purchases or let you invest small amounts into ETFs.
Why it matters: Time in the market beats timing the market. Even a few dollars a week can turn into tens of thousands over time due to compound growth.
Special tip: Set a recurring investment just like a Netflix subscription.
4. Create a Mini Emergency Fund
Before aggressively investing or paying down debt, build a small emergency fund of at least $1,000. This is your buffer for unexpected costs like a flat tyre, vet bill, or surprise dentist visit.
Why: It prevents you from turning to credit cards or Buy Now, Pay Later when life happens.
Hack: Open a separate high-interest savings account and label it "Emergency Only."
5. Grow Your Financial IQ for Free
You don’t need a finance degree to master your money. Commit to learning one thing a week—a podcast, blog article, YouTube video, or free course.
Top picks for Aussies:
"She's on the Money" podcast
ASIC's Moneysmart website
Financial Wellness Hub blogs
6. Know Your Money Triggers
Impulse spending often isn’t about the money, but the mood. Are you stressed, bored, or trying to keep up with friends?
Tip: Use a 24-hour pause rule before big purchases. Ask: "Will this matter to me in a week?"
Pro tip: Keep a spending diary for a month. You’ll be shocked where your money goes.
7. Design a Life You Can Afford (and Love)
Wealth isn’t just money in the bank! It’s the freedom to do what matters to you. Define what "rich" means for your lifestyle. Is it travel? Flexibility? Owning a home?
Strategy: Align your spending with your values, not someone else’s Instagram.
Try this: Do a "joy audit." Look at last month's transactions and ask, "Did this bring me joy or value?"
Final Thoughts
You don’t need to earn six figures to start building wealth. With the right mindset, a few smart tools, and consistent habits, you can start from scratch and create serious financial momentum.
Remember: it's not about being perfect. It's about getting started!
Explore more tools, tips, and real-life stories on the Financial Wellness Hub.
What's one money habit you're going to change this month? Share it in the comments!
By Brett Tarlington