With almost half of Australians reportedly living pay-cheque to pay-cheque^, it seems many of us will struggle to put our saving plans into practice.

Building wealth doesn’t have to be complicated or mean making big sacrifices. Adding just $10 extra per week to your super could significantly boost your savings for the future. The more you can contribute, the more this effect is multiplied by compound interest as your savings grow.

Just look at the difference regular contributions could make to your super balance.

Could you spare $10 per week?
By contributing $10 per week (after tax), you could save*:
Period of investment (Years) 10 20 30
Amount saved $6,102 $14,664 $26,680

 

 

Could you spare $20 per week?
By contributing $20 per week (after tax), you could save*:
Period of investment (Years) 10 20 30
Amount saved $12,203 $29,328 $53,360

 

Could you spare $50 per week?
By contributing $50 per week (after tax), you could save*:
Period of investment (Years) 10 20 30
Amount saved $30,508 $73,320 $133,401

 

Could you spare $100 per week?
By contributing $100 per week (after tax), you could save*:
Period of investment (Years) 10 20 30
Amount saved $61,015 $146,641 $266,802

 

Whatever you can spare out of your weekly budget, it’s important to start saving sooner rather than later. Your future self will thank you.

Contact Clever Cashflow today for world class budget training and personal financial coaching.

^ MLC & IPSOS, Australia today report, Feb 2016. *Assumptions: The weekly contribution is made as a single annual contribution (eg $10pw is made as a $520 contribution 1x pa). The individual is eligible to contribute to super for each year of the entire period. Individual makes after tax contributions (i.e. Non Concessional Contributions). [As such the amount contributed is the amount invested]. Investment returns are growth 4% pa, income 3% pa, franking credits nil. Investments are still held at the end of the period. Investment income is taxed at 15%. Result is in today’s dollars.